Nitto Denko (6988) Q4 2026 earnings summary

Executive summary

• FY2025 revenue rose 1.4% year-over-year to ¥1,028.2 billion, while operating profit declined 1.1% to ¥183.6 billion and net profit attributable to owners fell 2.7% to ¥133.5 billion.

• Total comprehensive income surged 53.3% year-over-year to ¥203.6 billion, driven by significant gains in other comprehensive income.

• Revenue growth in Industrial Tape and Human Life segments offset a decline in Optronics; foreign exchange negatively impacted operating profit by ¥8.1 billion.

• Excluding foreign exchange effects, both revenue and operating profit increased year-over-year.

Financial highlights

• Operating profit margin decreased from 18.3% to 17.9% year-over-year.

• ROE declined from 13.5% to 12.2% year-over-year.

• Free cash flow dropped from ¥102.8 billion to ¥84.7 billion; cash and equivalents at period end were ¥359.8 billion.

• Basic earnings per share was ¥197.20, up from ¥195.74, reflecting the impact of a 5-for-1 stock split.

Outlook and guidance

• FY2026 revenue forecast is ¥1,065.0 billion (+3.6% YoY), operating profit ¥193.0 billion (+5.1% YoY), and net profit attributable to owners ¥141.0 billion (+5.6% YoY).

• Dividend planned at ¥64 per share for FY2026, up ¥4; up to ¥50 billion in treasury share buybacks planned.

• Basic EPS expected at ¥209.30 for FY2026.