Nippon Sheet Glass Company (5202) Q3 2025 earnings summary

Executive summary

• Revenue increased year-over-year, but operating profit dropped sharply, mainly due to the European economic slowdown and weaker performance in the Architectural segment.

• Loss attributable to owners of the parent was ¥10,079 million, reversing a profit of ¥13,503 million in the previous year.

• Labor and other costs continued to rise, outpacing cost reduction efforts, and asset utilization in Europe remained challenged.

• Shareholders' equity ratio fell to 11.7%, and interest-bearing debt increased due to negative free cash flow from lower operating profit and higher working capital.

• Adverse market conditions persisted in key regions, especially Europe, while demand for solar energy glass and technical glass remained positive.

Financial highlights

• Q3 revenue rose to JPY 207.5bn from JPY 192.5bn year-over-year, with cumulative 9-month revenue at JPY 630.0bn, but operating profit dropped to JPY 0.6bn for Q3 and JPY 10.8bn for 9 months.

• Net loss for the period was JPY 6.2bn, compared to a profit of JPY 3.7bn the previous year; basic EPS fell to ¥(126.74) from ¥132.29.

• EBITDA for the 9 months was JPY 48.1bn, down from JPY 65.0bn.

• Free cash flow for the 9 months was negative JPY 46.4bn, a deterioration from negative JPY 12.4bn.

• Gross profit declined to ¥124,728 million from ¥140,333 million year-over-year.

Outlook and guidance

• Full-year revenue forecast revised to JPY 832.5bn–850.0bn, with operating profit forecast at JPY 16.0bn, down from JPY 26.0bn.

• Net loss for the full year is now expected to be JPY 17.0bn, with basic EPS of ¥(207.96).

• The group is pursuing its "2030 Vision: Shift the Phase" medium-term plan, targeting operating profit of ¥64.0bn and a 7% return on sales by FY2027.

• Forecast reflects continued European economic slowdown and exceptional costs, with actions underway to improve profitability, including production adjustments and cost reductions.