Nippon Gas (8174) Q3 2026 earnings summary

Executive summary

• Operating income and gross profit for 3Q exceeded plan, driven by strong performance in electricity; LP and city gas were in line with expectations.

• Net sales for the nine months ended December 31, 2025, rose 2.9% year-over-year to ¥141,959 million, with operating income up 30.3% to ¥11,010 million and profit attributable to owners of parent up 29.2% to ¥7,626 million.

• Record-high operating income achieved in 3Q; full-year operating income forecast remains at ¥20.0B.

• Net income for 3Q reached ¥7.6B, with EPS at ¥70.1; full-year EPS forecast is ¥129.6.

• Growth was driven by increased gross profit in the electricity business and reduced selling, general, and administrative expenses following regulatory changes.

Financial highlights

• 3Q gross profit was ¥51.9B, up ¥1.3B year-over-year, mainly from electricity margin and customer growth.

• Operating income for 3Q was ¥11.0B, up ¥2.6B year-over-year.

• Basic earnings per share rose to ¥70.07 from ¥53.23 in the prior year period.

• Comprehensive income surged 67.1% year-over-year to ¥8,843 million.

• SG&A expenses were well controlled at ¥40.9B for 3Q, with cost to acquire reduced by ¥1.7B year-over-year.

Outlook and guidance

• Full-year operating income guidance remains at ¥20.0B, with prudent estimates for 4Q gross profit due to temperature and slide impact.

• Full-year forecast for FY ending March 31, 2026, remains unchanged: operating income and ordinary income both projected at ¥20,000 million, and profit attributable to owners of parent at ¥14,000 million.

• Basic earnings per share for the full year is forecast at ¥129.58.

• Full-year gross profit expected at ¥75.0B, with electricity and Energy Sola growth offsetting LP C&I decline.

• No significant changes in 4Q forecast; gross profit and margins estimated conservatively.