Nakanishi (7716) Q4 2025 earnings summary

Executive summary

• Consolidated net sales increased by 5.4% year-over-year to ¥81,179 million, with all business segments contributing to growth, especially a 28.1% YoY increase in the Surgical business.

• Operating income declined 3.5% to ¥14,089 million, and ordinary income fell 2.0% to ¥16,933 million year-over-year.

• Despite higher personnel and selling expenses, profit from sales growth offset these costs, but U.S. tariffs pressured profit in the second half.

• Net loss attributable to owners of parent was ¥2,398 million, mainly due to impairment loss related to the DCI business from U.S. tariffs.

• Comprehensive income was negative ¥77 million, down from ¥14,285 million last year.

Financial highlights

• FY2025 net sales: ¥81,179 million (+5.4% YoY); gross profit: ¥46,060 million (+3.7% YoY); EBITDA: ¥19,899 million (-2.7% YoY); operating profit: ¥14,089 million (-3.5% YoY).

• Net loss attributable to owners of parent: -¥2,398 million, mainly due to impairment loss.

• Gross profit increased to ¥46,060 million from ¥44,418 million year-over-year.

• Earnings per share dropped to -¥28.70 from ¥101.37 year-over-year.

• Equity ratio declined to 71.0% from 76.3% at the previous year-end.

Outlook and guidance

• FY2026 net sales forecast: ¥88,180 million (+8.6% YoY); EBITDA: ¥20,640 million (+3.7% YoY); operating profit: ¥15,642 million (+11.0% YoY); net profit: ¥10,943 million (return to profit).

• Record-high sales expected for the sixth consecutive year, with all segments projected to grow.

• Dividend per share forecasted to increase to ¥60.00 for 2026.

• Absence of previous year’s impairment and FX gains will impact YoY profit comparison.