Nissan Chemical (4021) Q1 2027 earnings summary

Executive summary

• Achieved record-high sales, operating profit, and net income in 1Q FY2026, with all metrics exceeding both year-over-year and outlook targets.

• Net sales for Q1 FY2026 rose 12.8% year-over-year to ¥78.8 billion, operating income up 21.1% to ¥21.9 billion, and net income attributable to owners of parent up 21.2% to ¥16.8 billion.

• All major segments reported higher sales and operating income, with Performance Materials and Trading segments showing the largest gains.

• 1Q results surpassed outlook by 14% in sales, 30% in operating profit, and 22% in net income.

• Cash flows from operating activities increased to ¥21.2 billion, while cash and cash equivalents at period end were ¥35.2 billion.

Financial highlights

• EBITDA increased from ¥21.4 billion to ¥25.5 billion year-over-year.

• EPS rose from ¥102.20 to ¥125.74.

• Gross profit increased to ¥39.8 billion from ¥34.1 billion year-over-year.

• Free cash flow in 1Q FY2026 was ¥15.1 billion, up ¥2.1 billion year-over-year.

• OP margin improved from 25.9% to 27.8%.

Outlook and guidance

• FY2026 outlook for 1H and full year, including segment guidance, remains unchanged from May 2026.

• No change in the previously announced outlook for FY2027: full-year net sales forecast at ¥289.7 billion (+3.6% YoY), operating income at ¥66.8 billion (+5.1%), and net income at ¥51.5 billion (+3.6%).

• Share repurchase plan of ¥10.5 billion between May 2026 and March 2027.

• The company targets a dividend payout ratio of 55% or more and a total payout ratio of 75% or more after FY2025.