Nissan Chemical (4021) Q2 2026 earnings summary

Executive summary

• 1H FY2025 sales rose by ¥11.9B (+10%) year-over-year to ¥130.1B, with operating profit up ¥1.3B (+4%) to ¥29.6B and net income up ¥2.3B (+11%) to ¥22.8B.

• All major financial metrics exceeded the May 2025 outlook, with sales ¥8.2B above target and net income ¥2.2B above target.

• Dividend for 1H maintained at ¥70/share; ¥6.5B share repurchase completed.

• FY2025 full-year outlook revised upward: record-high OP of ¥59.0B, sales up ¥20.8B (+8%), net income up ¥1.0B (+2%).

• Annual dividend forecast raised to ¥180/share, with a total payout ratio target of 75%+.

Financial highlights

• 1H FY2025 sales: ¥130.1B (+10% YoY); OP: ¥29.6B (+4% YoY); net income: ¥22.8B (+11% YoY); EPS: ¥168.45 (+19.67 YoY).

• Gross profit increased to ¥61.8B from ¥56.9B YoY; comprehensive income for the period was ¥25.9B, up 39.1% YoY.

• Cash and cash equivalents at period end increased to ¥34.3B.

• Equity ratio at 73.9% as of September 2025, up from 70.5% at March 2025.

• Free cash flow for FY2025 outlook: ¥40.1B, down ¥1.5B from FY2024.

Outlook and guidance

• FY2025 sales forecast: ¥272.2B (+8% YoY); OP: ¥59.0B (+4% YoY); net income: ¥44.0B (+2% YoY); EPS: ¥328.22 (+5% YoY).

• 2H FY2025 net income expected to decline 6% YoY due to lower foreign exchange gains.

• Dividend payout ratio target set at 55% or more, with total payout ratio at 75%+ after FY2025.

• Capex and R&D spending to remain elevated, especially in Performance Materials and Agrochemicals.

• Medium-term plan targets OP margin of 20%+, ROE of 18%+, and dividend payout ratio of 55%+.