Nifco (7988) Q4 2026 earnings summary

Executive summary

• Net sales for FY2025 were ¥352.7 billion, nearly flat year-over-year but above forecasts.

• Operating profit margin was high at 13.6%, with operating profit at ¥48.1 billion, despite a 2.3% YoY decrease.

• Net income reached ¥34.0 billion, exceeding guidance but down 23.9% YoY due to one-off impairment losses.

• Comprehensive income declined 26.1% to ¥40.0 billion.

• Sales and profits were impacted by temporary factors, including impairment losses and new plant costs.

Financial highlights

• Ordinary profit for FY2025 was ¥51.3 billion, down 1.7% YoY.

• Basic EPS was ¥361.44, down from ¥461.95 in FY2024.

• ROE for FY2025 was 12.0%, down from 17.2% in FY2024.

• Operating cash flow decreased to ¥47.2 billion, with cash equivalents at ¥141.7 billion.

• Free cash flow was ¥29.0 billion.

Outlook and guidance

• FY2026 forecasts net sales of ¥367.0 billion (+4.1% YoY), operating profit of ¥50.8 billion (+5.7% YoY), and net income flat at ¥34.0 billion.

• EPS expected to rise to ¥365.10, with ROE improving to 12.5%.

• Assumes a weaker yen at JPY 153/USD.