Nippon Paper Industries Co (3863) Q4 2026 earnings summary

Executive summary

• Net sales for the fiscal year ended March 31, 2026, were ¥1,192.6 billion, up 0.9% year-over-year, driven by higher volumes in Daily-Life Products and investment effects.

• Operating income increased 27.9% year-over-year to ¥25.2 billion, mainly due to improved profitability in overseas operations and normalization after prior-year maintenance.

• Profit attributable to owners of parent was ¥11.7 billion, up 158.7% from the previous year.

• Extraordinary income included gains from sales of investment securities and retirement benefits trust.

• Comprehensive income reached ¥32.7 billion, an 89.6% increase year-over-year.

Financial highlights

• FY2026/3 net sales: ¥1,192.6 billion (+0.9% YoY); operating income: ¥25.2 billion (+27.9% YoY); net income: ¥11.7 billion (+158.7% YoY).

• EBITDA reached ¥92.0 billion; operating income margin improved to 2.1%.

• Gross profit improved to ¥199.0 billion from ¥191.1 billion year-over-year.

• Free cash flow was ¥31.4 billion; cash and equivalents at period end: ¥207.4 billion.

• Basic earnings per share rose to ¥101.69 from ¥39.33 year-over-year.

Outlook and guidance

• FY2027/3 forecast: net sales ¥1,220.0 billion (+2.3% YoY), operating income ¥25.0 billion (-0.8% YoY), net income ¥10.0 billion (-14.8% YoY).

• Basic earnings per share forecast is ¥86.72.

• Forecast incorporates a ¥7 billion negative impact from high raw material and fuel prices and Middle East uncertainty.

• Price revisions for products are expected to continue to offset cost pressures.