Nippon Sanso (4091) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FYE2026 declined 4.4% year-over-year, mainly due to foreign exchange impacts and lower volumes, but price management and productivity improvements supported margins.

• Core operating profit fell 5.7% year-over-year, with increases in Japan and Thermos offset by declines in the US, Europe, and Asia & Oceania.

• Net income attributable to owners of the parent decreased 2.4% year-over-year, with a net income margin of 9.0%.

• Market demand remained soft globally, with cautious customer investment and subdued industrial activity.

• The acquisition of Coregas in Australia was completed July 1, 2025, and will contribute from Q2 onward.

Financial highlights

• Q1 FYE2026 revenue: ¥314,758 million (down 4.4% YoY); core operating income: ¥45,620 million (down 5.7% YoY); net income attributable to owners: ¥28,395 million (down 2.4% YoY).

• EBITDA margin improved to 23.8% from 23.6% YoY.

• Operating cash flow rose 22% year-over-year, mainly due to lower tax payments.

• Investing cash flow dropped 57% as CapEx was deliberately slowed.

• Cash and cash equivalents increased to ¥169.5bn at Q1 end.

Outlook and guidance

• Full-year FYE2026 revenue forecast: ¥1,290,000 million (down 1.4% YoY); net income attributable to owners: ¥116,000 million (up 17.4% YoY); basic EPS: ¥267.99.

• Full-year forecast maintained despite ongoing global economic uncertainty.

• Volume softness expected to persist, but price management and operational efficiency initiatives to support results.

• Anticipated contributions from Coregas acquisition and new U.S. on-site plant.

• Net income and operating income (IFRS) projected to grow 17.4% and 15.1% respectively.