Nippon Sanso (4091) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 2024 rose 4.6% year-over-year to ¥971.2bn, with core operating income up 12.1% to ¥139.7bn and net income attributable to owners up 5.6% to ¥77.4bn.

• Growth was driven by strong performance in Europe and Asia & Oceania, while Japan saw a revenue decline due to lower volumes and LPG subsidiary deconsolidation.

• Achieved profit growth despite macroeconomic challenges, supported by cost pass-through and productivity initiatives.

• Foreign exchange tailwinds contributed approximately ¥36.3bn to revenue and ¥5.6bn to core operating income.

• Strategic acquisitions in Oceania (Coregas Group) and Spain (Esteve Teijin Healthcare) expanded the industrial gas and homecare businesses.

Financial highlights

• Q3 revenue increased 3.8% year-over-year to ¥328.2bn, with core operating income up 7.5% to ¥46.2bn and net income up 13.1% to ¥28.9bn.

• EBITDA margin improved to 23.3% for the nine months, and core operating income margin rose to 14.4%.

• Free cash flow for the nine months was ¥32.6bn, down from ¥47.4bn the previous year.

• Operating income increased 3.7% year-over-year to ¥128.8bn; income before income taxes up 4.3% to ¥112.9bn.

• Basic earnings per share rose to ¥178.99 from ¥169.56 year-over-year.

Outlook and guidance

• Full-year FYE2025 revenue is forecast at ¥1,300.0bn (+3.6% year-over-year), with core operating income of ¥185.0bn (+11.4%) and net income attributable to owners of ¥107.0bn (+1.0%).

• Full-year basic earnings per share projected at ¥247.20.

• Dividend forecast raised to ¥48.00 per share for the full year.

• Positive forex impact expected to add ¥40.7bn to revenue and ¥6.1bn to core operating income.