Nippon Gear (6356) Q4 2026 earnings summary

Executive summary

• Revenue increased 3.4% year-over-year to ¥9,883 million, with operating profit up 16.7% and net profit up 13.0%.

• Orders rose 14.5% year-over-year, driven by strong demand in both gear and construction segments.

• The business environment saw moderate recovery in domestic demand but faced global uncertainties, including rising resource prices and geopolitical risks.

Financial highlights

• Operating profit reached ¥2,457 million (up 16.7% year-over-year), and net profit was ¥1,751 million (up 13.0%).

• Gross margin improved as cost of sales declined 4.0% year-over-year, despite an 8.7% increase in SG&A expenses.

• Cash and equivalents at year-end rose to ¥6,125 million, up 36.2% from the previous year.

• Dividend per share increased to ¥10.00, with a payout ratio of 8.1%.

Outlook and guidance

• FY2027 revenue is forecast at ¥10,000 million (up 1.2%), with operating profit of ¥2,500 million (up 1.7%) and net profit of ¥1,760 million (up 0.5%).

• The company aims to achieve these targets through continued product development, overseas expansion, and facility upgrades.