Nippon Kayaku Co (4272) Q2 2027 earnings summary

Executive summary

• FY2026 1H net sales rose 18.0% YoY to ¥134.0bn; consolidated operating income was ¥19.3bn and profit attributable to owners was ¥16.1bn, all interim records.

• Growth in Mobility & Imaging and Fine Chemicals lifted segment profit, while Life Science segment profit declined; full-year forecasts were raised.

Financial highlights

• Net sales increased ¥20.4bn YoY; consolidated operating income rose ¥3.8bn, ordinary income ¥4.0bn and parent-attributable profit ¥4.4bn.

• Segment operating income was ¥14,896m, up ¥4.3bn YoY; ordinary income was ¥14.8bn and parent-attributable profit was ¥16.1bn.

• Basic EPS was ¥109.91 versus ¥75.07 a year earlier; the average USD exchange rate was ¥159.49 versus ¥146.03.

• Extraordinary income included a ¥4,322m gain on investment-security sales and a provisional ¥3,019m bargain-purchase gain; pretax profit was ¥21,098m.

Outlook and guidance

• FY2026 forecast: net sales ¥277.8bn, consolidated operating income ¥38.5bn, ordinary income ¥27.9bn and parent-attributable profit ¥24.1bn.

• Versus August guidance, sales increased ¥6.9bn and consolidated operating income ¥1.3bn; segment operating income forecast rose ¥1.4bn to ¥28.7bn.

• Forecast assumes ¥157.14 per US dollar, revised from ¥148.00; projected ROE is 8.7% and ROIC 6.3%.

• FY2026 segment sales forecasts: Mobility & Imaging ¥108.9bn, Fine Chemicals ¥81.9bn and Life Science ¥87.0bn; segment operating income forecasts are ¥14.2bn, ¥14.6bn and ¥9.7bn, respectively.

• Full-year dividend forecast remains ¥66 per share; H1 dividend was ¥33 per share.