Nippon Light Metal Holdings Company (5703) Q4 2025 earnings summary

Executive summary

• Net sales rose 5.1% year-over-year to ¥550.2 billion, with operating profit up 19.5% to ¥21.7 billion and ordinary profit up 4% to ¥19.8 billion, driven by higher sales prices, strong truck body and semiconductor-related product sales, and improved profitability in aluminum sheets and extrusions.

• Profit attributable to owners of parent increased 24.5% to ¥12.4 billion.

• Management reforms included segment reorganization, integration of automotive parts, and a new business group system to enhance capital efficiency and governance.

• Growth was achieved despite high raw material costs, sluggish auto production in Japan and China, and global economic uncertainties.

• Dividend per share increased to ¥70.

Financial highlights

• Net sales reached ¥550.2 billion (+5.1% year-over-year); operating profit was ¥21.7 billion (+19.5%); ordinary profit ¥19.8 billion (+4.0%).

• Profit attributable to owners of parent was ¥12.4 billion (+24.5%); ROIC improved to 5.1%.

• Gross profit increased to ¥95.3 billion; operating margin improved to 4.0% from 3.5%.

• Net assets rose to ¥250.5 billion, equity ratio 42.8%.

• Dividend per share increased to ¥70.

Outlook and guidance

• FY ending March 2026 forecasts: net sales ¥590.0 billion (+7.2%), operating profit ¥23.0 billion (+5.8%), ordinary profit ¥21.0 billion (+6.1%), profit attributable to owners ¥15.0 billion (+21.2%).

• Dividend per share forecasted at ¥80, with a payout ratio of 33.0%.

• Growth expected from semiconductor and LiB-related products, truck bodies, and effects of sales price revisions.

• Impact from additional U.S. tariffs considered minimal; global developments monitored.