NOF (4403) Q2 2026 earnings summary

Executive summary

• H1 FY2025 net sales declined 1.2% year-on-year to ¥109,139 million, with operating profit down 11.5% to ¥20,648 million and profit attributable to owners of parent down 9.4% to ¥15,419 million.

• The business environment was affected by global economic uncertainty, high raw material and fuel prices, and policy risks, though domestic consumption in Japan showed gradual recovery.

• The company is targeting record-high net sales and profits for FY2025, with limited impact expected from U.S. tariff policy.

• Continued focus on expanding business in life/healthcare, environment/energy, and electronics/IT, with ongoing innovation and cost reduction initiatives.

Financial highlights

• H1 FY2025 net sales were ¥1,091 billion, down 1.2% year-over-year; operating profit fell 11.5% to ¥206 billion.

• Ordinary profit decreased 8.3% to ¥216 billion; profit attributable to owners of parent dropped 9.4% to ¥154 billion.

• Free cash flow increased to ¥206 billion in H1 FY2025 from ¥67 billion in H1 FY2024.

• Comprehensive income rose to ¥19,226 million, up 3.9% year-on-year.

• Basic earnings per share for the six months was ¥66.60, compared to ¥71.39 in the previous year.

Outlook and guidance

• FY2025 forecast revised upward: net sales expected at ¥2,584 billion, operating profit at ¥460 billion, and profit at ¥382 billion.

• Basic EPS forecasted at ¥166.2, up ¥8.6 from previous guidance.

• Annual dividend for FY2025 revised up to ¥52 per share.

• Full-year forecast for fiscal year ending March 31, 2026: net sales ¥258,400 million (up 8.4% year-on-year), operating profit ¥46,000 million (up 1.5%), ordinary profit ¥48,300 million (up 3.7%), profit attributable to owners of parent ¥38,200 million (up 4.7%), and basic EPS ¥166.18.