Nippon Kayaku Co (4272) Q4 2026 earnings summary

Executive summary

• FY2025 net sales reached ¥241.9 billion, up 8.7% year-over-year, with all major business units outperforming and profit attributable to owners rising 40.7% to ¥24.6 billion, mainly due to gains on investment security sales and strong segment performance.

• Operating income increased 10.1% to ¥22.5 billion, and ordinary income grew 14.4% to ¥25.5 billion, with ROE improving to 9.0%.

• All business segments posted higher revenue; Fine Chemicals and Life Science achieved profit growth, while Mobility & Imaging profit declined due to raw material costs.

Financial highlights

• Net sales: ¥241.9 billion (+8.7% YoY); Operating income: ¥22.5 billion (+10.1% YoY); Profit attributable to owners: ¥24.6 billion (+40.7% YoY); Ordinary income: ¥25.5 billion (+14.4% YoY).

• Gross profit increased to ¥72.9 billion; comprehensive income reached ¥38.7 billion.

• Cash flows from operating activities were ¥28.8 billion; cash and cash equivalents at year-end were ¥53.4 billion.

• Total assets rose to ¥398.7 billion, net assets to ¥280.1 billion, and equity ratio at 70.0%.

• Extraordinary income rose by ¥9.4 billion from investment security sales.

Outlook and guidance

• FY2026 forecasts: Net sales ¥260.6 billion (+7.8% YoY), operating income ¥25.4 billion (+13.1% YoY), profit attributable to owners ¥22.3 billion (-9.5% YoY) due to lower extraordinary gains.

• All segments expected to grow revenue and profit; Mobility & Imaging to benefit from increased auto production and price pass-through.

• Dividend forecast for FY2026 and FY2027 is ¥66.00 per share.

• Capital investments projected to rise by ¥11.0 billion in FY2026; R&D expenses to increase by ¥3.0 billion.