Nippon Kayaku Co (4272) Q1 2026 earnings summary

Executive summary

• Net sales increased 2.1% year-over-year to ¥54.8 billion for FY 2025 1Q, while operating income declined between 13.3% and 21.6% to as low as ¥4.4 billion, mainly due to underperformance in Mobility & Imaging and higher raw material costs.

• Profit attributable to owners rose 20.3% year-over-year to ¥4.3 billion, driven by a gain on sales of investment securities.

• Ordinary income dropped 44.1% year-over-year to ¥4.1 billion, impacted by foreign exchange losses.

• FY 2025 forecasts remain unchanged from initial guidance.

Financial highlights

• Net sales: ¥54.8 billion (up ¥1.1 billion YoY); operating income: as low as ¥4.4 billion (down up to ¥1.0 billion YoY); ordinary income: ¥4.1 billion (down ¥3.2 billion YoY); profit: ¥4.3 billion (up ¥0.7 billion YoY).

• Non-operating income swung from +¥1.7 billion to -¥0.3 billion due to foreign exchange losses.

• Extraordinary income improved from -¥1.6 billion to +¥1.9 billion, mainly from gains on investment security sales.

• EPS (basic and diluted) increased to ¥27.29 from ¥21.52 year-over-year.

• Comprehensive income fell to ¥5,111 million from ¥9,374 million year-over-year.

Outlook and guidance

• Full-year net sales forecast at ¥234.6 billion, up 5.4% year-over-year; operating income forecast at ¥20.0 billion, down 2.0% year-over-year.

• Full-year profit attributable to owners forecast at ¥17.4 billion, down 0.6% year-over-year.

• 1H net sales progress at 49% and operating income at 46%; 2Q expects continued growth in Safety Systems in China and recovery in catalysts in Fine Chemicals.

• No changes to previously announced business forecasts.