NOF (4403) Q4 2025 earnings summary

Executive summary

• FY2024 saw record highs in net sales, operating profit, ordinary profit, and profit, with a dividend per share of ¥45, up ¥7 year-over-year.

• Net sales rose 7.2% year-over-year to ¥238,310 million, with operating profit up 7.5% to ¥45,308 million and net income attributable to owners up 7.4% to ¥36,497 million.

• Growth was driven by strong performance in Functional Chemicals and Explosives & Propulsion, offset by declines in Pharmaceuticals, Medicals and Health.

• The company advanced its solutions-based business model and invested in R&D and capital expenditures for sustainable growth.

• FY2025 targets further record highs in all major profit metrics, with a forecasted operating profit of ¥46 billion.

Financial highlights

• FY2024 net sales: ¥238.3 billion (+7.2%); operating profit: ¥45.3 billion (+7.6%); ordinary profit: ¥46.6 billion (+2.2%); profit attributable to owners: ¥36.5 billion (+7.4%).

• Basic EPS: ¥153.9 (+¥12.7 year-over-year); dividend per share: ¥45.

• FY2025/2026 forecast: net sales ¥252.0 billion (+5.7%), operating profit ¥46.0 billion (+1.5%), profit ¥36.8 billion (+0.8%), EPS ¥157.6.

• Free cash flow in FY2024: ¥15.2 billion.

• Gross profit increased to ¥85,153 million from ¥79,490 million year-over-year.

Outlook and guidance

• FY2025/2026 guidance assumes no impact from potential U.S. tariff policy changes.

• Exchange rate assumptions: JPY/USD 145, JPY/EUR 160.

• Dividend forecast for FY2025: ¥48 per share.

• Target ROE for FY2025: 12% or more, maintaining FY2024's 13.4%.

• Segment outlook: Functional Chemicals and Explosives & Propulsion expected to see growth; Pharmaceuticals, Medicals and Health to recover on DDS demand.