Nippon Shokubai (4114) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 revenue rose 19.8% YoY to ¥121.3B, operating profit up 182.7% to ¥12.1B, and profit attributable to owners of parent up 134.0% to ¥10.4B, driven by inventory valuation gains and strong Solutions business performance.

• Basic earnings per share increased to ¥70.24 from ¥29.27 YoY; comprehensive income surged 510.7% to ¥14,580 million.

• Full-year FY2026 forecasts project revenue of ¥455.0B (+13.8% YoY), operating profit of ¥21.0B, and profit of ¥20.5B, with a 100% dividend payout policy maintained.

Financial highlights

• Gross profit increased from ¥18,208 million to ¥26,994 million YoY.

• Total assets grew to ¥610,609 million, up ¥30,400 million from March 31, 2026.

• Cash and cash equivalents at quarter-end were ¥50,162 million, down ¥1,657 million from the previous fiscal year-end.

• Net cash provided by operating activities was ¥13,141 million, a decrease from ¥14,762 million YoY.

• Segment income for Q1 increased to ¥13.5B (+143.8% YoY); full-year forecast at ¥27.0B (+44.1% YoY).

Outlook and guidance

• Raw material prices expected to stabilize in 2H FY2026 despite Middle East uncertainty.

• Equity-method investment profit forecast to rise sharply due to absence of prior-year impairment losses.

• Dividend forecast revised upward to ¥140.00 per share for FY2026, with a 100% payout or 2% DOE.

• Basic earnings per share for the full year is forecast at ¥139.71.