Nissan Chemical (4021) Q4 2025 earnings summary

Executive summary

• FY2024 saw record highs in operating profit, ordinary income, and net income, with sales up 10.9% year-over-year to ¥251.4 billion and net income up 13% to ¥43.0 billion.

• All major income metrics exceeded both the previous year and the February outlook, driven by strong Performance Materials and Agricultural Chemicals.

• ROE reached 18.7%, exceeding the medium-term plan target, and total payout ratio was 82.0%.

• Shareholder returns included a ¥174 dividend per share and a ¥11.5 billion share repurchase.

• Launched Stage II of "Vista2027," targeting ¥293 billion sales and ¥65 billion operating profit by FY2027.

Financial highlights

• Operating profit rose 18% year-over-year to ¥56.8 billion; EBITDA increased to ¥71.2 billion.

• Operating profit margin improved to 22.6% (+1.3pt year-over-year).

• Free cash flow surged to ¥41.6 billion, up ¥26.6 billion year-over-year.

• Cash flows from operating activities rose to ¥59.2 billion, with year-end cash at ¥27.5 billion.

• Annual dividend per share increased to ¥174, with a payout ratio of 55.5%.

Outlook and guidance

• FY2025 sales projected to rise 4% to ¥262.2 billion, with operating profit up 1% to ¥57.6 billion.

• Net income forecasted at ¥43.1 billion, flat year-over-year; ROE expected at 18.1%.

• Dividend planned at ¥176 per share, with a total payout ratio target of 75% and dividend payout ratio of 55.1%.

• Announced ¥9.0 billion share repurchase for FY2025.

• Basic EPS forecasted at ¥319.43 for FY2025.