Nitto Denko (6988) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q FY2025 was ¥246.2B, down 1.3% year-over-year; operating profit fell 15.9% to ¥42.6B; net profit attributable to owners decreased 13.4% to ¥31.3B.

• Total comprehensive income dropped to ¥28.0B from ¥70.9B a year ago.

• Despite increased production in autos, IT devices, and smartphones ahead of U.S. tariffs, overall revenue and profit declined due to foreign exchange impacts and other factors.

• Excluding foreign exchange effects, revenue increased year-over-year, but operating profit still declined.

Financial highlights

• Operating profit margin dropped to 17.3% from 20.3% year-over-year.

• Gross profit fell to ¥92.5B from ¥98.5B year-over-year.

• Basic EPS was ¥45.68, down from ¥51.45 in the same quarter last year (adjusted for stock split).

• Cash and cash equivalents at period end were ¥291.0B, down from ¥363.3B at the previous fiscal year-end.

• Cash flows from operating activities decreased to ¥18.4B from ¥31.6B year-over-year; free cash flow was negative at -¥18.8B.

Outlook and guidance

• Full-year FY2025 revenue forecast is ¥984.0B, down 2.9% year-over-year; operating profit forecast is ¥170.0B, down 8.4%.

• Net profit attributable to owners forecasted at ¥125.0B, down 8.9% year-over-year.

• First-half FY2025 forecasts were revised upward due to stronger demand, with revenue now expected at ¥500.0B and operating profit at ¥90.0B.

• Full-year dividend planned at ¥60 per share (post-stock split basis); up to ¥80.0B in treasury share buybacks planned.

• Basic EPS for the year is expected to be ¥179.87.