Nagase (8012) investor relations material

Executive summary

• Achieved record-high net sales and profits for FY2025, with Q4 performance exceeding expectations due to pull-forward demand from Middle East conditions.

• Net sales rose 2.9% year-over-year to ¥972,783 million; operating income increased 14.5% to ¥44,727 million.

• Profit attributable to owners grew 29.8% year-over-year to ¥33,119 million; comprehensive income surged 82.8% to ¥59,043 million.

• Prinova Group and Nagase Chemtex drove strong results, especially in Solutions, Nutrition, and AI semiconductor markets.

• Extraordinary gains/losses included losses from China business withdrawal, offset by M&A negative goodwill and investment securities sales.

Financial highlights

• FY2025 sales: ¥972.7 billion, up 3% year-over-year; gross profit: ¥187.6 billion, up 8%; operating profit: ¥44.7 billion, up 14%.

• Gross profit margin improved to 19.3% from 18.3% year-over-year.

• EPS rose to ¥78.89 from ¥57.60, reflecting a four-for-one stock split.

• Total assets grew to ¥871,526 million; net assets increased to ¥434,025 million.

• Cash and cash equivalents at year-end decreased to ¥45,390 million from ¥65,903 million.

Outlook and guidance

• FY2026 sales forecast: ¥1 trillion (+3% YoY); gross profit: ¥198 billion (+5% YoY); operating profit: ¥45 billion (+1% YoY).

• FY2027 forecast: net sales ¥1,000,000 million (+2.8%), operating income ¥45,000 million (+0.6%), profit attributable to owners ¥34,500 million (+4.2%), EPS ¥84.59.

• Prinova Group Nutrition business to turn profitable; Nagase Diagnostics to contribute full-year earnings.

• Upfront investments and office relocation to increase costs, but lower retirement benefit expenses to support operating profit.