Nippon Kayaku Co (4272) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 1H reached ¥113.6 billion, up 4.1% year-over-year, with all business units outperforming the previous year.

• Operating income declined by ¥0.5 billion to ¥10.6 billion, a 4.9% decrease, mainly due to underperformance in the Mobility & Imaging segment.

• Profit attributable to owners of parent surged 95.7% year-over-year to ¥11.7 billion, mainly due to a ¥6.2 billion gain on investment security sales.

• Full-year forecasts were revised upward, projecting net sales of ¥239.8 billion and profit of ¥20.4 billion.

Financial highlights

• Gross profit margin decreased from 31.9% to 29.8% year-over-year, with gross profit at ¥33,859 million.

• Operating income margin dropped to 9.3% from 10.2% year-over-year.

• Extraordinary income rose by ¥8.8 billion, driven by gains on investment security sales.

• EPS increased to ¥75.07 from ¥36.21 year-over-year.

• Comprehensive income reached ¥15,851 million, up from ¥305 million year-over-year.

Outlook and guidance

• FY2025 full-year net sales forecast raised to ¥239.8 billion, up 7.7% year-over-year.

• Operating income forecast at ¥21.3 billion (+4.4%), ordinary income at ¥20.9 billion (+6.1%), and profit at ¥20.4 billion (+16.5%).

• Dividend forecast maintained at ¥60.00 per share for the year.

• All business units expected to see higher sales; profit growth anticipated despite cost pressures.