Nishikawa Rubber (5161) Q4 2025 earnings summary

Executive summary

• Achieved record-high consolidated sales of ¥120,639 million for the fiscal year ended March 2025, driven by yen depreciation, favorable exchange rates, and increased North American sales.

• Operating profit increased for the second consecutive year to ¥7,324 million, mainly due to improved performance in North America, but ordinary profit fell 14.6% to ¥7,617 million due to foreign exchange losses.

• Net income attributable to parent company shareholders declined 21.5% year-over-year to ¥3,957 million.

• Comprehensive income dropped 60% year-over-year, reflecting significant declines in other comprehensive income components.

Financial highlights

• Consolidated sales: ¥120.6 billion, up 2.3% year-over-year; gross profit increased to ¥21,428 million.

• Operating profit: ¥7.32 billion, up 11.7% year-over-year (operating margin 6.1%).

• Net margin decreased to 3.3% from 4.3% year-over-year.

• Cash and equivalents at year-end rose to ¥41,592 million, up ¥3,001 million from the previous year.

• Dividend per share for the year was ¥184 (pre-split basis), with a payout ratio of 102%.

Outlook and guidance

• For FY ending March 2026, sales expected to decrease 8.8% to ¥110 billion due to US trade policy and forex impacts.

• Operating profit forecast to decline 9.9% to ¥6.6 billion; net income to rise 6.1% to ¥4.2 billion; ordinary income projected at ¥8 billion (up 5%).

• Strategic focus includes strengthening internal controls, expanding orders from non-Japanese automakers, and targeting a 55% equity ratio by FY2031.

• Assumed USD/JPY rate: 147.00.