Nichias (5393) Q4 2025 earnings summary

Executive summary

• Achieved record-high results for the fourth consecutive year, driven by Energy & Industrial plants segment.

• FY2024 net sales reached ¥256.5 billion, up 2.9% year-over-year; operating income rose 12.8% to ¥39.7 billion.

• Profit attributable to owners of parent increased 19.0% to ¥32.1 billion year-over-year.

• Comprehensive income declined 15.6% year-over-year to ¥30.6 billion, mainly due to negative other comprehensive income items.

• Continued focus on business portfolio optimization, including withdrawal from unprofitable residential insulation materials.

Financial highlights

• Net sales: ¥256.5 billion (+2.9% YoY); operating income: ¥39.7 billion (+12.8% YoY); ordinary income: ¥41.7 billion (+7.5% YoY).

• Profit attributable to owners of parent: ¥32.1 billion (+19.0% YoY); operating margin: 15.5%.

• Equity ratio improved to 74.5% from 68.7% in the previous year.

• 16 consecutive years of dividend increases; FY2024 annual dividend was ¥108 per share.

• Basic earnings per share increased to ¥491.36 from ¥406.60 year-over-year.

Outlook and guidance

• FY2025 net sales forecast at ¥257.0 billion (+0.2% YoY); operating income expected to decrease 6.9% to ¥37.0 billion due to ¥3.0 billion in new core system development costs.

• Profit attributable to owners of parent projected at ¥26.0 billion (-18.9% YoY); basic EPS forecasted at ¥398.32.

• Annual dividend forecast for FY2025 is ¥152 per share; total return ratio set at 50% or higher.

• Strategic investment allocation of ¥29 billion planned for FY2025–2026, focusing on R&D, AI/DX, and M&A.