Nippon Shokubai (4114) Q1 2026 earnings summary

Executive summary

• 1Q FY2025 revenue was ¥101.2B, down 3.7% year-over-year, and operating profit was ¥4.3B, down 17.2%.

• Profit attributable to owners was ¥4.4B, down 4.2% year-over-year.

• Comprehensive income dropped to ¥2.4B from ¥13.9B, mainly due to negative exchange differences.

• The Solutions segment achieved growth in both revenue and profit, offsetting some declines in other areas.

• Temporary cost increases from U.S. affiliate maintenance and higher SG&A costs impacted profitability.

Financial highlights

• Revenue decreased 3.7% year-over-year to ¥101.2B; operating profit margin fell from 4.9% to 4.2%.

• Equity-method investment profit rose 84.4% to ¥1.2B.

• Profit before tax was ¥6.3B (down ¥0.1B); net profit attributable to owners was ¥4.4B (down ¥0.2B).

• Free cash flow turned negative at -¥2.3B due to higher investing outflows.

• Basic earnings per share was ¥29.27, slightly down from ¥29.98.

Outlook and guidance

• Full-year FY2025 forecast: revenue ¥405.0B (down 3.3%), operating profit ¥17.0B (down 10.8%), net profit ¥15.0B (down 13.8%).

• 1H FY2025 forecast: revenue ¥200.0B (down ¥6.9B YoY), operating profit ¥8.5B (down ¥2.0B), net profit ¥7.5B (down ¥1.4B).

• No change in guidance from previous announcement.