NOF (4403) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 27.9% YoY to ¥139,608m; operating profit rose 13.1% to ¥23,352m and profit attributable to owners of parent rose 10.2% to ¥16,985m.

• Growth was led by Explosives & Propulsion, supported by defense-related rapid-acquisition transactions; Pharmaceuticals, Medicals and Health recorded lower sales and profit.

• The FY2027 earnings forecast and dividend outlook were revised; the forecast calls for ¥321,500m net sales and ¥41,000m attributable profit.

Financial highlights

• H1 net sales ¥139,608m (+27.9% YoY), operating profit ¥23,352m (+13.1%), ordinary profit ¥24,199m (+11.9%) and profit attributable to owners of parent ¥16,985m (+10.2%).

• Gross profit was ¥44,818m versus ¥40,957m YoY; income before income taxes was ¥24,845m versus ¥21,899m.

• Comprehensive income increased to ¥21,661m from ¥19,226m, including ¥4,605m of other comprehensive income.

• Total assets were ¥393,014m at Sep. 30, 2026, down ¥6,154m from Mar. 31; net assets rose ¥4,048m to ¥300,514m.

Outlook and guidance

• FY2027 forecast: net sales ¥321,500m (+24.6% YoY), operating profit ¥50,500m (+6.5%), ordinary profit ¥51,800m (+2.8%), attributable profit ¥41,000m (+1.1%) and EPS ¥183.00; forecast revised Nov. 5.

• FY2027 dividend forecast revised to ¥74/share, comprising ¥37 interim and ¥37 year-end; the FY2026 annual dividend was ¥61/share.

• DDS raw-material shipments are expected mainly in H2; some clinical-development product shipments are expected to move to the next fiscal year.

• Rapid-acquisition defense transactions are progressing largely as planned, with firm demand expected for other defense-related products.