Nissan Chemical (4021) Q3 2025 earnings summary

Executive summary

• Sales for 3Q FY2024 rose 14% year-over-year to ¥56.6 billion, with operating profit up 36% and net income up 73% compared to 3Q FY2023.

• For the nine-month period, sales increased 13% year-over-year to ¥174.8 billion, operating profit up 23%, and net income up 22%.

• All major income metrics exceeded both the prior year and the company’s previous outlook, driven by strong demand in performance materials and agricultural chemicals.

• Upward revision of full-year FY2024 outlook, with operating profit expected to reach a record ¥55.0 billion.

• Annual dividend maintained at ¥164/share; ¥10.0 billion share repurchase completed, total payout ratio outlook at 79.4%.

Financial highlights

• 3Q FY2024 sales: ¥56.6 billion (+14% YoY); operating profit: ¥12.8 billion (+36% YoY); net income: ¥11.2 billion (+73% YoY).

• 1-3Q FY2024 sales: ¥174.8 billion (+13% YoY); operating profit: ¥41.1 billion (+23% YoY); net income: ¥31.7 billion (+22% YoY).

• EBITDA for 1-3Q: ¥51.2 billion (+8.3 billion YoY); EPS: ¥230.27 (+44.25 YoY).

• Free cash flow for 1-3Q: ¥33.9 billion, up ¥12.1 billion YoY; cash and equivalents at period end: ¥29.2 billion.

• Equity ratio at 68.4%; ROE outlook for FY2024 is 17.7%.

Outlook and guidance

• FY2024 full-year sales forecast revised up to ¥247.6 billion (+9% YoY); operating profit to ¥55.0 billion (+14% YoY); net income to ¥40.9 billion (+8% YoY).

• Basic earnings per share for the year ending March 31, 2025 projected at ¥297.25.

• Dividend payout ratio target at 55%; total payout ratio target at 75%.

• Main segments (Chemicals, Performance Materials, Agrochemicals, Healthcare) expected to maintain strong performance.