Nishikawa Rubber (5161) Q4 2026 earnings summary

Executive summary

• Achieved record-high sales and profits, with operating profit rising for the third consecutive year due to cost reductions, especially in North America, despite US tariffs and global uncertainties.

• Net income attributable to shareholders jumped 176.9% to ¥10,960 million, aided by gains from policy share sales and a tax refund.

• Sold policy-holding shares and repurchased treasury stock, compressing shareholder equity; year-end dividend set at ¥92 per share.

• A special loss of ¥1,180 million was recorded for a U.S. antitrust settlement, offset by a ¥1,139 million tax refund.

Financial highlights

• Net sales reached a record ¥122.1 billion, up 1.2% year-over-year; operating profit rose 23.6% to ¥9.05 billion; ordinary profit increased 46.9% to ¥11.19 billion; net income attributable to parent rose 176.9% to ¥10.96 billion.

• Gross profit increased to ¥23,440 million from ¥21,428 million year-over-year.

• Comprehensive income rose to ¥15,329 million, up from ¥5,595 million year-over-year.

• Special gain of ¥4.4 billion from sale of investment securities.

• Dividend per share for the year was ¥183, with a payout ratio of 62.3%.

Outlook and guidance

• For FY2027, expects sales to decrease 3.4% to ¥118 billion and operating profit to fall 17.1% to ¥7.5 billion due to lower auto production and higher material costs; net income forecast to drop 40.7% to ¥6.5 billion.

• Annual dividend planned at ¥184 per share, maintaining DOE at 8%.

• Only full-year guidance provided due to market and geopolitical uncertainties.

• Will continue cost reduction, automation, and ESquare® product expansion.

• Long-term targets for FY2031: revenue ¥130 billion, operating margin 10%, ROE 9%.