Nitto Denko (6988) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 revenue rose 10.3% year-over-year to 271.7 billion yen, with operating profit up 15.4% to 49.2 billion yen and net profit attributable to owners up 8.2% to 33.9 billion yen.

• Comprehensive income surged 74.3% year-over-year, driven by significant foreign exchange gains.

• Basic earnings per share increased to 50.75 yen from 45.68 yen in the prior year period.

• Full-year operating profit forecast was raised to 200.0 billion yen, reflecting strong segment performance and FX tailwinds.

• Growth was driven by increased demand in Industrial Tape and Human Life segments, while Optronics saw mixed results.

Financial highlights

• Gross profit increased to 102.2 billion yen from 92.5 billion yen year-over-year.

• Operating profit margin improved to 18.1% from 17.3% a year ago, with operating profit at 49.2 billion yen versus 42.6 billion yen a year ago.

• Net profit attributable to owners reached 33.9 billion yen, up 8.2% year-over-year.

• Free cash flow improved to -13.0 billion yen from -18.8 billion yen in Q1 FY2025.

• Net cash provided by operating activities was 23.2 billion yen, up from 18.4 billion yen year-over-year.

Outlook and guidance

• FY2026 revenue forecast raised to 1,110.0 billion yen (+8.0% YoY), with operating profit expected at 200.0 billion yen (+8.9% YoY).

• Full-year net profit forecast increased to 142.0 billion yen, with basic EPS expected at 212.75 yen.

• Segment forecasts show strong growth in Industrial Tape and Human Life, with Optronics expected to remain stable.

• Forecasts reflect a stronger yen and ongoing geopolitical risks, including a -10.0 billion yen impact from Middle East tensions.