Nippon Chemical Industrial (4092) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY March 2026 rose 1.5% year-over-year to 20.998 billion yen, driven by higher sales volumes in automotive and communication electronic ceramic materials.

• Operating profit declined 42.1% year-over-year to 1.39 billion yen, impacted by higher costs, product mix changes, and margin compression.

• Ordinary profit fell 42.6% year-over-year to 1.374 billion yen; profit attributable to owners of parent decreased 18.2% to 1.336 billion yen.

• Comprehensive income increased 25.2% year-over-year to 1.756 billion yen.

• Interim dividend maintained at 60 yen per share, reflecting a commitment to stable shareholder returns.

Financial highlights

• EBITDA dropped 22.8% year-over-year to 3.236 billion yen.

• Earnings per share for the half-year was 152.79 yen, down from 185.09 yen in the prior year.

• Gross profit dropped from 5.039 billion yen to 4.161 billion yen year-over-year, with gross margin compression.

• Total assets increased to 75.694 billion yen as of September 30, 2025, up from 75.105 billion yen at March 31, 2025.

• Net assets rose to 47.791 billion yen, with an equity-to-asset ratio of 63.1%.

Outlook and guidance

• Full-year forecast remains unchanged: net sales projected at 40.5 billion yen and operating profit at 3.2 billion yen.

• Profit attributable to owners of parent expected at 2.6 billion yen for the full year.

• Annual dividend forecast increased to 120 yen per share.

• Focus for the second half is on expanding sales, reducing inventory, and asset liquidation to improve profitability.