Nippon Shokubai (4114) Q4 2026 earnings summary

Executive summary

• Revenue declined 2.3% year-over-year to ¥399.9 billion, mainly due to lower selling prices despite higher sales volume.

• Operating profit fell 8.0% to ¥17.5 billion, impacted by inventory valuation losses and higher costs.

• Segment income dropped 18.8% to ¥18.7 billion, primarily from lower profitability in the Materials Business.

• Solutions Business/segment saw increased revenue and operating profit, excluding equity-method investment results.

• Comprehensive income surged to ¥38,159 million, driven by gains in other comprehensive income.

Financial highlights

• Profit before tax decreased 7.4% year-over-year to ¥21.5 billion; net profit attributable to owners was ¥16.8 billion, down 3.6%.

• Gross profit increased to ¥74.8 billion from ¥70.4 billion year-over-year.

• EBITDA was ¥54.8 billion, down from ¥56.1 billion in the prior year.

• Capex increased to ¥53.3 billion, notably for lithium-ion battery electrolyte equipment.

• Cash and cash equivalents at year-end were ¥51.8 billion, down ¥2.7 billion year-over-year.

Outlook and guidance

• No consolidated financial forecast for FY2026 due to uncertainty from Middle East geopolitical tensions.

• Company will disclose forecasts once the impact becomes clearer.

• Naphtha prices are expected to rise sharply in early FY2026, with ongoing supply chain uncertainty.

• Price pass-throughs to customers are underway to offset raw material cost increases.