Nippon Sheet Glass Company (5202) Q1 2026 earnings summary

Executive summary

• Operating profit increased year-over-year, mainly due to improved performance and higher prices in the European Architectural glass business, despite a 2.9% decline in overall revenue, partly from FX effects and lower Automotive sales.

• Cost reduction initiatives, including float line cessations in Europe, contributed to profit improvement.

• Shareholders' equity ratio declined to 9.9%, and interest-bearing debt rose due to seasonal working capital and FX movements.

• Free cash flow remained negative but improved year-over-year, with ongoing efforts to reduce debt.

• Net loss attributable to owners was ¥154 million, compared to a profit of ¥2,400 million in the prior year.

Financial highlights

• Q1 revenue was ¥210,202 million, down ¥6,200 million year-over-year; operating profit rose to ¥6,870 million from ¥4,800 million.

• Return on sales improved by 1.1pt to 3.3%.

• EBITDA increased to ¥19,800 million from ¥17,500 million year-over-year.

• Exceptional items netted a gain of ¥1,668 million, mainly from the disposal of equity interest in Vietnam Float Glass.

• Basic EPS was negative at ¥(7.02), down from ¥21.01 in the previous year.

Outlook and guidance

• Full-year forecasts remain unchanged: revenue ¥850,000–¥840,000 million, operating profit ¥31,000 million, net profit ¥2,000–¥4,000 million.

• Assumptions include market recovery in Europe in H2, ongoing cost controls, and monitoring of US tariff policy impacts.

• Medium-term plan targets operating profit of ¥64 billion and a 7% return on sales by FY2027.

• Group aims to return to net profit and continues actions to improve profitability.