Nippon Seisen (5659) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 decreased by ¥267 million year-over-year to ¥11,275 million, representing a 2.3% decline, with both Japan and overseas regions affected.

• Operating profit dropped by ¥701 million to ¥464 million, a 60.1% decrease compared to the same quarter last year.

• Ordinary profit fell by ¥721 million to ¥483 million, down 59.9% year-over-year.

• Profit attributable to owners of parent decreased by ¥511 million to ¥315 million, a 61.8% year-over-year drop.

• Comprehensive income fell 79.3% year-over-year to ¥239 million.

Financial highlights

• Stainless steel wire sales volume increased by 59 tons/month year-over-year, but net sales declined by ¥236 million/month due to a sharp drop in super fine wire demand for photovoltaic panels.

• Metal fiber (NASLON®) and filter sales rose by ¥148 million/month, with notable growth in overseas carbon fiber precursor production and semiconductor gas filters.

• High function and unique product sales fell by ¥132 million/month, mainly due to the super fine wire segment's weakness.

• Gross profit decreased from ¥2,073 million to ¥1,370 million year-over-year.

• Basic earnings per share for the quarter were ¥10.30, compared to ¥26.98 a year earlier.

Outlook and guidance

• FY2025 net sales are forecast at ¥55,000 million, with ordinary profit projected at ¥3,200 million.

• Full-year net sales forecast for FY ending March 31, 2026, is ¥43,500 million, a 7.0% decrease year-over-year.

• Operating profit is projected at ¥3,200 million, down 30.1% year-over-year.

• Profit attributable to owners of parent is forecast at ¥2,300 million, a 29.2% decrease.

• Dividend per share forecast is ¥16 interim and ¥42 year-end, with a payout ratio target around 50%. Annual dividend forecast is ¥56.00 per share.