Nitto Boseki (3110) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose to ¥57.4 billion, up ¥4.4 billion or 8.2% year-over-year, with operating profit up ¥2.1 billion or 28.7% to ¥9.5 billion, driven by strong special glass and electronic materials demand for AI servers and data centers.

• Full-year outlook revised upward, with net profit forecast at ¥37.5 billion, a 192.1% increase year-over-year, reflecting extraordinary income from asset sales.

• Robust demand for special glass and electronic materials in AI, data center, and semiconductor markets continues to drive growth.

• Dividend forecast revised upward to ¥114 per share for FY2025, with a payout ratio target of 30% of recurring profit.

• Extraordinary income from fixed asset sales significantly boosts net profit forecast.

Financial highlights

• Operating profit for 1H FY2025 was ¥9.5 billion, up ¥2.1 billion year-over-year, with an operating margin of 16.5%.

• Net profit for 1H FY2025 reached ¥6.9 billion, up ¥1.5 billion year-over-year.

• Full-year forecasts: sales ¥120 billion, operating profit ¥19 billion, ordinary profit ¥18.5 billion, net profit ¥37.5 billion.

• EBITDA for 1H FY2025 was ¥13.9 billion, with an EBITDA margin of 24.1%.

• Basic earnings per share for the full year forecasted at ¥1,030.04.

Outlook and guidance

• Full-year outlook anticipates higher sales and profits, supported by robust special glass demand and extraordinary income from asset sales.

• Upward revision of operating and ordinary profit forecasts by ¥2 billion from previous guidance.

• Dividend policy targets at least ¥55 per share, with a planned annual dividend of ¥114 per share for FY2025.

• Risks include US-China trade friction, geopolitical uncertainties, and rising raw material and energy costs.

• Actual results may differ from forecasts due to various factors.