Nippon Soda (4041) Q4 2026 earnings summary

Executive summary

• Net sales for FY ended March 2026 were ¥152.09B, down 2.0% year-over-year; operating profit fell 6.8% to ¥14.97B.

• Ordinary profit rose 17.7% to ¥22.99B, and profit attributable to owners increased 21.7% to ¥18.27B, driven by higher equity-method profits and foreign exchange gains.

• Comprehensive income surged to ¥31.26B, up 488.7% from the previous year.

• Sales in Chemical Materials, Agri Business, and Eco Solutions were steady, but Engineering segment declined due to reduced plant construction work.

Financial highlights

• Earnings per share increased 23.5% year-over-year to ¥336.54, reflecting the 2-for-1 share split.

• Share of profit from equity-method affiliates more than doubled, mainly from IHARABRAS, reaching ¥6.06B.

• Extraordinary gains rose to ¥5.46B, mainly from investment securities sales; extraordinary losses increased to ¥3.72B due to structural reforms and plant closures.

• Free cash flow improved to ¥10.79B, up ¥5.72B year-over-year.

• Return on equity improved to 9.3% from 8.0% year-over-year.

Outlook and guidance

• FY ending March 2027 forecasts net sales of ¥152.20B (flat), operating profit of ¥14.20B (down 5.1%), and profit attributable to owners of ¥15.80B (down 13.5%).

• Basic EPS projected at ¥294.77; annual dividend forecast is ¥160 per share.

• Inventory valuation gains in Agri Business expected to decrease; equity-method profit to decline due to reversal of prior FX gains.

• Assumed exchange rates: 1 USD = ¥150, 1 EUR = ¥175.