Nippon Chemical Industrial (4092) Q1 2026 earnings summary

Executive summary

• Net sales rose 5.5% year-over-year in the first quarter to ¥10,949 million, driven by higher volumes in both inorganic and specialty chemicals, but operating profit declined 34.2% to ¥1,110 million due to higher costs and production facility consolidation.

• Ordinary profit decreased 34.9% year-over-year to ¥1,134 million, and profit attributable to owners of parent fell 3.9% to ¥1,203 million.

• Comprehensive income dropped 41.4% year-over-year to ¥1,005 million.

• Compared to initial forecasts, both net sales and operating profit exceeded expectations, supported by strong demand for electronic ceramic materials and cost reductions.

• A gain on sale of non-current assets was recorded from land sales by a subsidiary.

Financial highlights

• First quarter net sales: ¥10,949 million (+5.5% YoY); operating profit: ¥1,110 million (−34.2% YoY); ordinary profit: ¥1,134 million (−34.9% YoY); net profit: ¥1,203 million (−3.9% YoY).

• EBITDA for the quarter was ¥2,062 million, down 21.4% year-over-year.

• Basic earnings per share for the quarter: ¥137.74, down from ¥141.94 in the prior year.

• Gross profit decreased from ¥3,047 million to ¥2,404 million year-over-year, while cost of sales increased from ¥7,331 million to ¥8,545 million.

• Total assets increased to ¥76,214 million as of June 30, 2025, up from ¥75,105 million at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥40.5 billion (+3.8% vs. previous forecast, up 4.3% YoY); operating profit forecast raised to ¥3.2 billion (+128.6% vs. previous forecast, projected to decline 4.3% YoY).

• Net profit forecast for the year increased to ¥2.6 billion (+136.4% vs. previous forecast, up 1.6% YoY).

• Assumed exchange rate revised from ¥158/$ to ¥145/$, reducing raw material procurement costs.

• Annual dividend forecast raised to ¥120 per share, up ¥28 year-over-year.