Nitto Kohki (6151) Q2 2026 earnings summary

Executive summary

• Sales for 1H FY2025 were 13.17 billion yen, down 2.4% year-over-year, mainly due to weak demand in the automobile sector and U.S. tariffs.

• Operating profit dropped 33.7% year-over-year to 900 million yen, affected by lower gross profit and increased costs from the new plant's start-up.

• Net profit attributable to owners of parent plummeted 88.8% year-over-year to 105 million yen.

• Comprehensive income turned negative at (41) million yen, compared to 1,616 million yen in the prior year.

• Extraordinary losses were recorded due to expenses related to the new plant relocation.

Financial highlights

• Gross profit for 1H FY2025 was 5,969 million yen, down 5.3% year-over-year; gross profit ratio declined to 45.3%.

• Operating profit margin fell to 7.0% from 10.3% a year earlier.

• Basic earnings per share dropped to 5.62 yen from 50.12 yen year-over-year.

• Cash and deposits fell to 12,615 million yen as of September 30, 2025, from 20,305 million yen at March 31, 2025.

• Net cash used in operating activities was (463) million yen, compared to a positive 1,108 million yen in the prior year.

Outlook and guidance

• FY2025 sales forecast is 27.3 billion yen (+0.2% YoY), with operating profit expected at 1.5 billion yen (-36.0% YoY).

• Net profit forecast for FY2025 is 650 million yen, down 51.7% year-over-year.

• Basic earnings per share forecast is 34.73 yen.

• Annual dividend for FY2025 is planned at 40 yen per share, with a payout ratio of 115.2%.

• FY2026 targets: sales of 32 billion yen, operating profit of 3.5 billion yen, and EBITDA of 6.2 billion yen.