Nitto Boseki (3110) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 19.4% YoY to ¥68,522m, operating profit increased 71.5% to ¥16,214m, and profit attributable to owners of parent rose 84.0% to ¥12,654m.

• Strong high-value-added product sales, particularly in Electronic Materials, supported results; FY2027 earnings forecasts were revised upward.

Financial highlights

• H1 ordinary profit was ¥16,503m; comprehensive income was ¥15,399m, up 58.8% YoY.

• H1 EBITDA rose 54.7% YoY to ¥21.4bn; EBITDA margin was 31.3%, versus 24.1% in the prior-year period.

• Operating profit increased ¥6.8bn YoY, with high-value-added products contributing ¥5.6bn and FX ¥0.9bn; higher reinforcement, depreciation, labor, R&D and input costs partly offset growth.

• Cash and deposits were ¥46,639m at September 30, 2026, down from ¥62,014m at March 31; total assets were ¥293,162m.

• H1 extraordinary income included ¥1,738m in gains on sales of investment securities; total extraordinary income was ¥1,752m.

Outlook and guidance

• FY2027 forecast: net sales ¥143,000m, operating profit ¥34,000m, ordinary profit ¥34,000m and profit attributable to owners of parent ¥24,000m.

• Forecasts were raised versus prior guidance: sales +1.4%, operating and ordinary profit +13.3% each, and profit attributable to owners of parent +20.0%.

• FY2027 EBITDA is forecast at ¥45.1bn; ROS at 23.8% and EBITDA margin at 31.5%.

• FY2027 basic EPS forecast is ¥131.85 after the five-for-one stock split; comparable pre-split EPS is ¥659.23.

• FY2025 net profit of ¥41.8bn included gains on sales of non-current assets; higher personnel, depreciation, electricity and fuel costs are factored into the FY2027 outlook.