Nippon Soda (4041) Q4 2025 earnings summary

Executive summary

• Net sales rose 0.5% year-over-year to ¥155.20 billion for the fiscal year ended March 31, 2025, with operating profit up 15.8% to ¥16.06 billion, while ordinary profit declined 16.2% to ¥19.53 billion.

• Profit attributable to owners declined 9.6% year-over-year to ¥15.01 billion, mainly due to the absence of a prior year one-time tax refund.

• Comprehensive income dropped sharply to ¥5,309 million from ¥28,353 million year-over-year.

• Chemical Materials and Engineering segments saw strong profit growth, while Agri Business operating profit declined due to shipping adjustments and lower overseas prices.

Financial highlights

• Operating margin improved to 10.4% from 9.0% year-over-year.

• Earnings per share decreased 8.8% year-over-year to ¥272.6 (adjusted for share split).

• Free cash flow turned positive at ¥5.08 billion, up ¥8.94 billion from the prior year.

• Gross profit increased to ¥44,934 million from ¥42,699 million year-over-year.

• Cash flows from operating activities surged to ¥22,636 million from ¥5,729 million year-over-year.

Outlook and guidance

• FY2026 net sales forecasted to decline 4.6% to ¥148.00 billion, with operating profit expected to fall 17.8% to ¥13.20 billion.

• Profit attributable to owners projected to decrease 11.4% to ¥13.30 billion.

• Annual dividend forecast for FY2026 is ¥140 per share (¥280 if not considering share split).

• Assumed exchange rates: 1 USD = 140 JPY, 1 EUR = 155 JPY.

• Engineering segment expected to see a decrease in plant construction work.