TOPPAN (7911) Q4 2026 earnings summary

Executive summary

• Net sales increased 5% year-over-year to ¥1,805.0 billion, driven by M&A, but operating profit declined 21.1% to ¥67.1 billion and non-GAAP operating profit fell 3.5% to ¥94.1 billion, missing forecasts due to weak North American packaging demand, electronics headwinds, and the deconsolidation of Tekscend Photomask.

• ROE reached 5.4% on a non-GAAP basis and 4.9% on a GAAP basis, meeting the 5% target.

• Major acquisitions in packaging and identity solutions, and a significant divestiture in the electronics segment, shaped results.

• Segment performance was mixed: Living & Industry grew sales significantly, Information & Communication was flat, and Electronics saw a sharp profit drop.

• The company implemented a new currency conversion policy and restructured its business segments.

Financial highlights

• EBITDA was ¥154.8 billion, down 6.9% year-over-year; non-GAAP operating profit was ¥94.1 billion, down 3.5%.

• Gross profit margin declined by 0.5 percentage points to 23.5%, mainly due to deconsolidation of Tekscend Photomask and sluggish demand in key segments.

• SG&A expense ratio increased by 0.7 percentage points to 19.8% due to newly consolidated subsidiaries.

• Ordinary profit improved to ¥8.6 billion, driven by a ¥5.8 billion increase in equity method investment gains.

• Basic earnings per share declined to ¥227.07; book value per share was ¥4,742.83; dividend per share increased to ¥58.00.

Outlook and guidance

• FY2026 guidance: net sales to grow 6.6% to ¥1,925.0 billion, non-GAAP operating profit up 7.3% to ¥101.0 billion, and operating profit up 19.2% to ¥80.0 billion.

• Non-GAAP EPS expected to rise 8.4% to ¥270.78; dividend per share maintained at ¥58.

• Net profit forecast to decline to ¥55.0 billion (-15.1% YoY) due to extraordinary items.

• Segment forecasts: Information Solutions net sales +4.6%, Living and Industry +14.4%, Electronics -13%.

• Treasury share purchases of up to ¥50 billion planned for FY2026.