Nippon Gear (6356) Q3 2026 earnings summary

Executive summary

• Domestic economy showed moderate recovery with improved corporate earnings and investment, but consumer spending remained sluggish due to prolonged inflation and global uncertainties.

• Orders increased 15.0% year-over-year, but sales declined 1.1% year-over-year; order backlog rose 38.5% from the previous fiscal year-end.

• Operating profit fell 6.1% year-over-year, ordinary profit dropped 5.8%, and net profit decreased 5.2%.

Financial highlights

• Revenue for the nine months ended December 2025 was ¥6,704 million, down 1.1% year-over-year.

• Operating income was ¥1,440 million, down 6.1% year-over-year; ordinary income was ¥1,482 million, down 5.8%.

• Net income was ¥1,010 million, down 5.2% year-over-year; EPS was ¥71.00, compared to ¥74.94 last year.

• Gross margin improved as cost of sales decreased 5.2% year-over-year, but SG&A expenses rose 14.3% due to actuarial differences in pension costs.

Outlook and guidance

• Full-year revenue forecast is ¥9,300 million, down 2.7% year-over-year.

• Operating profit forecast is ¥2,060 million, down 2.2%; net profit forecast is ¥1,480 million, down 2.9%.

• No changes to previously announced full-year guidance.