Nippon Sheet Glass Company (5202) Q4 2026 earnings summary

Executive summary

• Revenue and operating profit increased year-over-year, driven by improvements in the Architectural glass segment, especially in Europe and North America, with net profit exceeding forecasts due to a one-off tax effect in the UK.

• Profit attributable to owners was ¥4,421 million, reversing a loss of ¥13,831 million in the prior year, aided by a one-off deferred tax asset recognition in the UK.

• Cost increases and lower production efficiency in some regions were partially offset by cost reduction initiatives, including float line cessations.

• Exceptional items included a net charge of ¥5,514 million, with a ¥3,422 million goodwill impairment in Automotive North America and a gain from the disposal of Vietnam Float Glass.

• No dividends declared for ordinary shares for FY2026 or forecast for FY2027; all Class A shares were converted to common shares during the year.

Financial highlights

• Full-year revenue rose to ¥879,462 million from ¥840,400 million year-over-year; operating profit increased to ¥28,817 million from ¥16,500 million.

• Net profit attributable to owners was ¥4,421 million, up from a loss of ¥13,831 million the previous year, aided by a ¥8,800 million one-off deferred tax asset increase in the UK.

• EBITDA improved to ¥83,000 million from ¥65,800 million year-over-year.

• Free cash flow was ¥1,062 million, down from ¥9,975 million in FY2025.

• Net financial indebtedness increased by ¥29,879 million to ¥484,138 million, mainly due to working capital and FX movements.

Outlook and guidance

• FY2027/3 forecast targets revenue of ¥880,000 million and operating profit of ¥36,000 million, with gradual European market recovery expected in H2 and ongoing cost pressures, especially from energy.

• Net profit forecasted at ¥3,000 million, with continued focus on cost reductions and price pass-through to offset inflation and geopolitical risks.

• Medium-term plan targets by FY2027: operating profit ¥64 billion, free cash flow ¥27 billion, interest-bearing debt ¥442 billion, and shareholders’ equity ratio 15%.

• Strategic focus on business development, decarbonization, digital transformation, and diverse talent.

• Assumptions include JPY appreciation and further cost control measures.