Nippon Sanso (4091) Q3 2026 earnings summary

Executive summary

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

• All business segments exceeded the 17% EBITDA margin target for the first time in a quarter, with electronics and specialty gases showing strong recovery, especially for AI data centers and semiconductors.

• Profitability recovery exceeded expectations, supported by operational excellence, productivity initiatives, and favorable currency effects.

• Capital expenditures and investments focused on sustainable growth, strategic acquisitions, and new R&D facilities, notably in Australia and Japan.

• Major acquisitions in Australia and Europe expanded the business footprint, with new companies added to the consolidation scope.

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; net income attributable to owners up 20.2%.

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

• Basic earnings per share rose to ¥215.18; total assets grew to ¥2,667,670 million; equity attributable to owners at 43.8%.

Outlook and guidance

• Full-year revenue forecast revised to ¥1,330,000 million (+1.7% YoY); core operating income forecast at ¥196.0bn (+3.6% YoY); net income expected at ¥123,500 million (+25.0%).

• EBITDA margin projected at 24.2% for the full year; basic earnings per share for the full year projected at ¥285.31.

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

• Guidance includes impact from recent U.S. winter storm and ongoing macroeconomic/geopolitical uncertainty.

• New midterm management plan to be announced March 30.