Nippon Gas (8174) Q4 2025 earnings summary

Executive summary

• Achieved record operating income of ¥18.546B for FYE 03/25, driven by growth in LP Gas, Electricity, and platform businesses, despite lower gas sales due to high temperatures.

• Net sales rose 2.9% YoY to ¥200,057M, with profit attributable to owners of parent up 6.7% to ¥11.548B.

• Acquisition of Kadokura Co., Ltd. in March 2025 strengthened the LP Gas business and is expected to drive further market consolidation and operational synergies.

• Plans to expand shareholder returns as required equity decreases, targeting a total return ratio of 145% for FYE 03/26.

• Cost reductions and efficiency improvements supported profit growth.

Financial highlights

• Gross profit increased by ¥0.9B YoY to ¥74.554B in FYE 03/25, with LP Gas and Electricity contributing most of the growth.

• SG&A expenses were controlled at ¥56.0B, down ¥0.2B YoY, with cost to acquire significantly reduced.

• Net income reached ¥11.548B, impacted by a ¥1.9B extraordinary loss on software retirement.

• EPS for FYE 03/25 was ¥104.5, with a forecasted increase to ¥130.6 (+25% YoY) for FYE 03/26.

• Cash and cash equivalents at year-end were ¥19.431B, up ¥717M YoY.

Outlook and guidance

• For FYE 03/26, operating income is forecasted at ¥20.0B, with continued profit growth expected from Electricity and LP Gas, and prudent sales volume estimates due to temperature sensitivity.

• Profit attributable to owners of parent is forecast to increase 21.2% to ¥14.0B.

• Dividend forecast for FY2026 is ¥103.00 per share, up from ¥92.50.

• SG&A expenses for FYE 03/26 are estimated at ¥56.0B, with further reductions in cost to acquire and IT expenses planned.

• Forecasts record profit for the fourth consecutive year, with ROE target maintained at 22%.