Nippon Paper Industries Co (3863) Q3 2026 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2026/3 rose 0.4% year-over-year to ¥889.5 billion, driven by growth in the Daily-Life Products segment, offsetting declines in Paper and Paperboard.

• Operating income increased 35.5% year-over-year to ¥15.0 billion, with recovery in overseas subsidiaries post-maintenance.

• Net income surged to ¥7.8 billion from ¥0.1 billion, aided by extraordinary gains from asset sales and retirement benefit trust returns.

• Comprehensive income increased to ¥8.2 billion, up 170.9% year-over-year.

Financial highlights

• Net sales: ¥889.5 billion (up ¥3.2 billion, +0.4% year-over-year).

• Operating income: ¥15.0 billion (up ¥3.9 billion, +35.5% year-over-year).

• Ordinary income: ¥14.0 billion (up ¥1.2 billion, +9.0% year-over-year).

• Basic earnings per share rose to ¥67.13 from ¥0.50 in the prior period.

• Equity-to-asset ratio was 27.9% at the end of the period.

Outlook and guidance

• FY2026/3 full-year forecast unchanged: net sales ¥1,200.0 billion (+1.5%), operating income ¥30.0 billion (+52.2%), net income ¥10.0 billion (+120.3%).

• Annual dividend forecast raised to ¥15.00 per share.

• Segment forecasts: Daily-Life Products to see strong growth, Paper and Paperboard to decline.

• Assumptions include stable raw material prices, JPY 152/USD exchange rate, and moderate changes in domestic sales volumes.