Nisshinbo (3105) Q4 2025 earnings summary

Executive summary

• FY2025 net sales rose 1.5% year-over-year to ¥502.3 billion, with operating income up 59.2% to ¥26.4 billion and net income attributable to owners up 35.4% to ¥13.9 billion, led by Wireless and Communications.

• Segment growth was led by Wireless and Communications, Solutions & Defense, and Marine Systems, while Mobility, Micro Devices, Chemicals, Textiles, and Real Estate segments faced declines or losses.

• Comprehensive income was ¥25,164 million, down 2.5% year-over-year.

• Structural reforms and business model transformation are underway, focusing on Wireless and Communications and Micro Devices, with a target of 10% operating profit margin and ROIC ≥7%.

Financial highlights

• Net sales increased by ¥7.6 billion year-over-year; operating income rose by ¥9.8 billion; ordinary income up ¥4.9 billion.

• Ordinary profit increased 20.2% year-over-year to ¥29,327 million.

• Basic earnings per share rose to ¥89.07 from ¥65.40 the previous year.

• Cash flows from operating activities were ¥49,337 million, up from ¥28,371 million.

• Cash and cash equivalents at year-end were ¥44,055 million, down ¥6,356 million year-over-year.

Outlook and guidance

• FY2026 forecast: net sales to rise 1.7% to ¥511 billion, but operating income to fall 20.5% to ¥21 billion and net income to drop 28.2% to ¥10 billion, mainly due to lower real estate sales and restructuring costs.

• Extraordinary loss of about ¥6 billion expected for FY2026 from microdevice business restructuring.

• Wireless and Communications and Micro Devices expected to drive sales growth, but overall profits to decline due to increased R&D and lower real estate contributions.

• Micro Devices anticipated to increase sales and reduce losses through structural reforms.

• Real Estate segment forecasted to decline in both sales and profit.