Nitto Denko (6988) Q2 2026 earnings summary

Executive summary

• 1H FY2025 revenue was ¥513.6B, down 1.6% year-over-year; operating profit fell 13.5% to ¥94.5B; net profit attributable to owners was ¥68.9B, down 13.8%.

• Revenue growth in Industrial Tape and Human Life was offset by a decline in Optronics.

• Foreign exchange had a negative ¥10.5B impact on operating profit due to yen appreciation of 4.7%.

• Demand increased for IT device materials and high-end smartphones, while oligonucleotide contract manufacturing moved a major project to commercialization.

Financial highlights

• 1H FY2025 operating profit margin was 18.4%, down from 20.9% in 1H FY2024.

• Gross margin for the period was 38.4%, with basic earnings per share at ¥101.32, down from ¥113.92 year-over-year.

• Cash flows from operating activities dropped to ¥75.0B from ¥106.5B; free cash flow was ¥18.7B.

• Cash and cash equivalents at period end were ¥303.2B, down ¥37.1B year-over-year.

• Total assets rose to ¥1,326.9B, and equity attributable to owners reached ¥1,048.1B, with a strong 79.0% equity ratio.

Outlook and guidance

• FY2025 revenue forecast is ¥995.0B, down 1.9% year-over-year; operating profit forecast is ¥173.0B, down 6.8%; net profit attributable to owners forecast at ¥126.0B, down 8.2%.

• Basic earnings per share for the year projected at ¥185.21.

• Forecasts were revised upward from July, with revenue up ¥11.0B and operating profit up ¥3.0B.

• Dividend for FY2025 planned at ¥60 per share, up ¥4, with interim and year-end dividends of ¥30 each.

• Treasury share buyback of ¥80.0B in 2025, with a 3.98% cancellation of treasury shares executed on October 15, 2025.