Nippon Kayaku Co (4272) Q4 2025 earnings summary

Executive summary

• Net sales for FY 2025 reached ¥222.6 billion, up 10.3% year-over-year, with all major business units outperforming the previous year.

• Operating income rose to ¥20.4 billion, a 178.1% increase year-over-year, and profit attributable to owners of parent hit a record ¥17.5 billion, up 325.6%, mainly due to a gain on sales of investment securities.

• FY 2026 forecasts project net sales of ¥234.6 billion (+5.4%), with slight decreases in operating income and profit expected.

• The company continued to implement its mid-term business plan, KAYAKU Vision 2025, focusing on growth and operational improvements.

• Dividend forecast for FY2026 is ¥60 per share, unchanged from FY2025.

Financial highlights

• Operating income margin improved to 9.2% in FY 2025 from 3.6% in FY 2024.

• ROE increased to 6.5% (+4.9pp), and the equity ratio stood at 71.6%.

• Ordinary income increased 77.3% year-over-year to ¥22.3 billion.

• Comprehensive income declined 44.0% to ¥13.1 billion due to negative other comprehensive income items.

• Extraordinary gains included ¥2.2 billion from sales of investment securities; a ¥2.6 billion loss was recorded on security valuations.

Outlook and guidance

• FY 2026 expects net sales growth in all business units, but operating income and profit are forecast to decrease slightly due to cost pressures and market factors.

• The impact of US tariff measures is not included in FY 2026 forecasts.

• Dividend forecast for FY2026 is ¥60 per share, unchanged from FY2025.