Nippon Sanso (4091) Q3 2026 earnings summary

Executive summary

• Revenue and core operating income grew year-over-year, driven by price management, operational excellence, FX gains, and acquisitions, despite soft volumes in some segments.

• All business segments exceeded the 17% EBITDA margin target for the first time, supported by pricing, productivity, and acquisitions.

• Electronics sector sales, especially for AI data centers and semiconductors, are on a recovery track globally.

• Capital expenditures and investments focused on sustainable growth, with major acquisitions in Australia and Europe.

• Macroeconomic and geopolitical uncertainties persist, including U.S.-Europe tensions and China-Japan trade issues.

Financial highlights

• Q3 revenue rose 5.7% year-over-year to ¥346.8bn; core operating income up 12.3% to ¥51.9bn; EBITDA margin reached 24.5%.

• Net income increased 26.7% year-over-year to ¥36.7bn; net income margin improved to 10.3%.

• Nine-month revenue up 2.7% to ¥997.7bn; core operating income up 4.6% to ¥146.2bn.

• Operating cash flow up 16.5% year-over-year; free cash flow slightly negative due to acquisition payments.

• EBITDA margin for Q3 reached 24.5%; for nine months, 24.0%.

Outlook and guidance

• Full-year revenue forecast revised up to ¥1,330.0bn (+1.7% YoY); core operating income forecast at ¥196.0bn (+3.6% YoY).

• Net income forecast to rise 24.6% to ¥127.0bn; net income attributable to owners expected at ¥123.5bn.

• EBITDA margin projected at 24.2% for the full year.

• Dividend forecast raised to ¥58.00 per share for FYE2026.

• Q4 margins expected to remain stable across regions, with continued focus on price and productivity.