Nishikawa Rubber (5161) Q1 2026 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2026 were ¥28,943 million, a 4.0% decrease year-over-year due to lower automobile production in Japan, North America, and Southeast Asia, despite growth in East Asia.

• Operating income declined 16.8% year-over-year to ¥1,758 million, impacted by higher labor costs in Japan.

• Ordinary income fell 32.2% to ¥2,058 million, mainly due to foreign exchange losses.

• Net income attributable to parent was ¥1,460 million, down 20.6% year-over-year.

• This marks the first sales decline in five periods and the first profit decline in three periods.

Financial highlights

• Net sales: ¥28,943 million, down 4.0% year-over-year.

• Operating income: ¥1,758 million, down 16.8% year-over-year (operating margin 6.1%).

• Ordinary income: ¥2,058 million, down 32.2% year-over-year.

• Net income attributable to parent: ¥1,460 million, down 20.6% year-over-year.

• Gross profit for Q1 FY2026 was ¥5,146 million, with a gross margin of 17.8%.

Outlook and guidance

• Full-year sales forecast: ¥110,000 million, down 8.8% from previous year.

• Operating income forecast: ¥6,600 million, down 9.9% year-over-year.

• Ordinary income forecast: ¥8,000 million, up 5.0% year-over-year.

• Net income forecast: ¥4,200 million, up 6.1% year-over-year.

• Dividend forecast for FY2026 is ¥184 per share (post-split basis).