Nippon Chemical Industrial (4092) Q1 2027 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2026, were ¥11,036 million, up 0.8% year-over-year, while operating profit increased 5.0% to ¥1,165 million due to improved sales mix and higher production efficiency ahead of scheduled maintenance.

• Demand related to AI servers and phosphine derivatives was strong, offsetting sluggish performance in automotive electronic ceramic materials and production adjustments in agrochemical ingredients.

• Profit attributable to owners was ¥903 million, down 24.9% year-over-year, mainly due to the absence of a prior-year gain on sale of non-current assets.

• Comprehensive income surged to ¥6,042 million, a 500.8% increase year-over-year, driven by gains in available-for-sale securities.

Financial highlights

• Net sales for 1Q FY March 2027 were ¥11,036 million, up 0.8% year-over-year.

• Operating profit rose 5.0% to ¥1,165 million, with margin improving to 10.6%.

• Ordinary profit increased 8.7% to ¥1,232 million.

• EBITDA grew 7.1% to ¥2,208 million.

• Basic earnings per share for the quarter were ¥104.13, down from ¥137.74 in the prior year.

Outlook and guidance

• Full-year forecasts for net sales, operating profit, and ordinary profit remain unchanged, with net sales forecast at ¥40,800 million and operating profit at ¥2,800 million.

• Profit forecast revised upward to ¥4,500 million (up 50–55.5% year-over-year) due to extraordinary income from sale of cross-shareholdings.

• Annual dividend forecast raised to ¥240 per share (previously ¥120).

• Decision to acquire up to 110,000 treasury shares (¥500 million maximum).