Nippon Sheet Glass Company (5202) Q2 2026 earnings summary

Executive summary

• Operating profit exceeded H1 forecast, driven by improved performance in the European Architectural glass segment and ongoing profitability initiatives.

• Revenue for H1 was JPY 420.8 bn, nearly flat year-over-year, with a slight decline from the previous year.

• Net loss attributable to owners was JPY 4.2 bn, slightly higher than the previous year.

• Free cash flow improved year-over-year and was positive in Q2, despite seasonal working capital movements.

• Shareholders' equity ratio remained stable at 10.4%, with a slight increase in interest-bearing debt due to FX and seasonal factors.

Financial highlights

• Cumulative H1 revenue was JPY 420.8 bn, down JPY 1.7 bn year-over-year; operating profit rose to JPY 12.0 bn, up JPY 1.8 bn.

• EBITDA for H1 increased to JPY 38.1 bn from JPY 35.0 bn year-over-year.

• Net loss for H1 was JPY 4.2 bn, slightly higher than the previous year.

• Free cash flow for H1 improved to JPY 6.9 bn from JPY 3.0 bn year-over-year.

• Gross profit increased to JPY 91.9 bn from JPY 85.1 bn year-over-year.

Outlook and guidance

• Full-year forecast for FY2026/3 remains unchanged: revenue JPY 850.0 bn, operating profit JPY 31.0 bn, net profit JPY 2.0 bn.

• No changes to the forecast this quarter; targets set for FY2027 include operating profit of JPY 64 bn and a 7% return on sales.

• Group continues to implement cost reductions and expects market recovery in Europe in H2, with uncertainty from US tariff policy.

• Assumes further increases in energy and material costs, and an appreciated JPY.