Nippon Soda (4041) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q FY2026 were ¥67.07B, nearly flat year-over-year, with operating profit at ¥7.05B, down 0.3% from the prior year.

• Ordinary profit rose 16.5% year-over-year to ¥9.74B, and profit attributable to owners increased 7.0% to ¥6.79B.

• Comprehensive income surged 189.6% year-over-year to ¥12.56B.

• Agri Business saw strong recovery as inventory levels normalized, while Engineering and Eco Solutions experienced sales declines.

Financial highlights

• Earnings per share increased 7.7% year-over-year to ¥124.1, adjusted for a 2-for-1 share split.

• Gross profit increased to ¥20.63B from ¥19.46B year-over-year.

• Equity ratio improved to 66.6% from 64.8% six months prior.

• Free cash flow for 2Q FY2026 was ¥5.63B, down ¥1.04B year-over-year.

• Cash and cash equivalents at period-end were ¥22.30B.

Outlook and guidance

• Full-year FY2026 net sales forecast is ¥148.0B, with guidance ranging from a 4.6% decrease to a 4.6% increase year-over-year.

• Operating profit is projected at ¥13.2B, with forecasts ranging from a 17.8% decline to a 17.8% increase.

• Profit attributable to owners is expected at ¥13.3B, with forecasts ranging from an 11.4% decrease to an 11.4% increase.

• Basic earnings per share forecast is ¥241.47.

• Engineering segment is expected to see a significant decrease in plant construction work.