Nippon Paper Industries Co (3863) Q4 2025 earnings summary

Executive summary

• Net sales rose 1.3% year-over-year to ¥1,182.4 billion, driven by growth in household paper, healthcare, and chemicals.

• Operating income increased 14.1% year-over-year to ¥19.7 billion, supported by strong domestic daily-life products and energy businesses.

• Net income attributable to owners of parent dropped 80% year-over-year to ¥4.5 billion due to impairment losses, but exceeded initial forecasts thanks to asset sales.

• Comprehensive income fell sharply to ¥17,259 million from ¥82,102 million in the prior year.

Financial highlights

• EBITDA reached ¥90.7 billion, up from ¥84.8 billion the previous year.

• Basic earnings per share declined to ¥39.33 from ¥197.09 year-over-year.

• ROE declined to 1.0% from 5.3% year-over-year.

• Free cash flow decreased to ¥39.3 billion from ¥68.2 billion year-over-year.

• Net assets rose to ¥510,435 million, with a capital adequacy ratio of 28.3%.

Outlook and guidance

• FY2026/3 forecast projects net sales of ¥1,205.0 billion (+1.9%), operating income of ¥34.0 billion (+72.5%), and net income of ¥12.0 billion (+164.4%) year-over-year.

• Growth expected from increased sales volume and price adjustments in domestic daily-life products and improved overseas profitability.

• Annual dividend forecast is ¥15.00 per share.

• Opal anticipates an extraordinary loss due to labor disputes and operational suspension in Q1.