Nagase (8012) Q1 2026 earnings summary

Executive summary

• First quarter profit declined in trading business due to weak automobile-related results, despite strong Electronics & Energy and Life & Healthcare segments.

• Prinova Group's manufacturing business showed recovery, offsetting sluggish trading from lower food ingredient prices.

• Strong sales of formulated epoxy resins for AI servers and food ingredients at Nagase ChemteX and Nagase Viita.

• Net sales for Q1 FY2025 were ¥237.3 billion, down 0.8% year-over-year, with gross profit up 0.4% to ¥44.3 billion.

• Comprehensive income dropped sharply to ¥1.8 billion, a 91.7% decrease from the prior year.

Financial highlights

• Sales: ¥2,373 hundred million, down 0.8% year-over-year; gross profit: ¥443 hundred million, up 0.4%.

• Operating income: ¥102 hundred million, down 4.5% year-over-year; profit attributable to owners: ¥75 hundred million, flat year-over-year.

• Earnings per share for Q1 FY2025 were ¥69.62, up from ¥65.42 in the prior year.

• Total assets increased to ¥811.6 billion as of June 30, 2025, from ¥808.1 billion at March 31, 2025.

• Net assets decreased to ¥398.7 billion from ¥406.5 billion at the previous fiscal year-end.

Outlook and guidance

• FY2025 guidance unchanged: sales projected at ¥9,550 hundred million, gross profit at ¥1,810 hundred million, operating income at ¥395 hundred million.

• Full-year FY2026 guidance: net sales ¥955 billion (+1.1% YoY), operating income ¥39.5 billion (+1.1%), profit attributable to owners of the parent ¥31.5 billion (+23.4%), EPS ¥300.99.

• Record-high profits expected, driven by semiconductor and food-related businesses.

• Prinova Nutrition business expected to narrow losses; strong demand for AI server semiconductors to continue.

• No revisions to the latest consolidated earnings forecast.