Nippon Light Metal Holdings Company (5703) Q1 2026 earnings summary

Executive summary

• Net sales rose 6.6% year-over-year to ¥137,093 million for the quarter ended June 30, 2025, driven by strong demand in truck body-related products and chemicals, despite weak automobile production and sluggish sales in China.

• Operating profit increased 24.8% year-over-year to ¥5,213 million, supported by sales price revisions and improved profitability in fabricated products and aluminum foil, powder, and paste segments.

• Ordinary profit declined 6.5% year-over-year to ¥4,263 million, and profit attributable to owners of parent decreased 1.1% to ¥2,123 million, mainly due to foreign exchange losses.

Financial highlights

• Gross profit for the quarter was ¥23,455 million, up from ¥22,156 million year-over-year.

• Net profit per share (basic) was ¥34.51, compared to ¥34.66 in the prior year.

• Comprehensive income dropped sharply to ¥1,468 million from ¥5,551 million year-over-year, reflecting negative foreign currency translation adjustments.

• Total assets decreased to ¥529,434 million from ¥544,307 million at the previous fiscal year-end.

• Equity ratio improved to 43.7% from 42.8% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast is ¥590,000 million, up 7.2% year-over-year, with operating profit projected at ¥23,000 million (up 5.8%) and profit attributable to owners of parent at ¥15,000 million (up 21.2%).

• Interim and year-end dividends are forecast at ¥25.00 and ¥55.00 per share, respectively, totaling ¥80.00 for the year.

• Management maintains its previous earnings forecasts, citing ongoing global economic uncertainties and market volatility.