Nippon Sanso (4091) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance with consecutive growth in key indicators and improved profitability, focusing on productivity, price management, and environmental initiatives.

• Profit growth was supported by stable shipment volumes for core gases and effective price management, offsetting cost pressures.

• Strategic investments in environmental and hydrogen-related projects, with enhanced risk assessment for large-scale projects following impairment losses in the U.S.

• Continued progress on the NS Vision 2026 medium-term plan, targeting further EBITDA margin improvement and sustainability goals.

• Foreign exchange movements favorably impacted revenue and core operating income.

Financial highlights

• Full-year revenue rose 4.2% year-over-year to ¥1,308.0bn, with core operating income up 13.9% to ¥189.1bn.

• EBITDA margin improved to 23.3% from 22.2% the previous year.

• Net income attributable to owners of the parent declined 6.7% to ¥98.7bn, with a net income margin of 7.6%.

• Gross operating profit increased to ¥545.4bn from ¥511.0bn year-over-year.

• Free cash flow for the year was ¥92.2bn, up 1.0% year-over-year.

Outlook and guidance

• FYE2026 revenue forecast ranges from ¥1,290.0bn (-1.4%) to ¥1,328.8bn (+1.6%), with core operating income expected between ¥191.0bn (+1.0%) and ¥197.2bn (+4.3%).

• Net income attributable to owners of the parent projected at ¥116.0bn (+17.4%).

• EBITDA margin targeted at 24.1% for FYE2026.

• Annual dividend for FYE2026 planned at ¥54 per share.

• Management remains cautious due to geopolitical risks, energy price volatility, and global inflation.