Nippon Sanso (4091) Q1 2026 earnings summary

Executive summary

• Q1 FYE2026 revenue declined 4.4% year-over-year, mainly due to foreign exchange impacts and lower volumes, but price management and productivity improvements supported margins, especially in Japan.

• Core operating profit decreased 5.7% year-over-year, with increases in Japan and Thermos offset by declines in the US, Europe, and Asia & Oceania.

• Net income attributable to owners of the parent decreased 2.4% year-over-year, with a net income margin of 9.0%.

• The company completed the acquisition of Coregas in Australia on July 1, 2025, which will contribute to results from Q2 onward.

• New management structure and director appointments were implemented to support future strategy.

Financial highlights

• Q1 FYE2026 revenue: ¥314,758 million (down 4.4% YoY); core operating income: ¥45,620 million (down 5.7% YoY); net income attributable to owners: ¥28,395 million (down 2.4% YoY).

• EBITDA margin improved to 23.8% from 23.6% YoY.

• Operating cash flow increased 22.1% year-over-year to ¥41,692 million, mainly due to lower corporate tax payments.

• Free cash flow turned positive at ¥22,000 million, up from -¥12,000 million in the prior year.

• Cash and cash equivalents increased to ¥169,500 million at Q1 end.

Outlook and guidance

• Full-year FYE2026 revenue forecast: ¥1,290,000 million (down 1.4% YoY); net income attributable to owners: ¥116,000 million (up 17.4% YoY); basic EPS: ¥267.99.

• Core operating income expected to rise 1.0% to ¥191,000 million; operating income (IFRS) projected to grow 15.1% to ¥191,000 million.

• No revisions to previously announced forecasts, with growth expected from specialty gases, equipment, and the Coregas acquisition.