Nissan Chemical (4021) Q4 2026 earnings summary

Executive summary

• FY2025 saw record highs in operating profit, ordinary income, and net income, with sales up 11.2% year-over-year to ¥279.6 billion, operating income up 11.8% to ¥63.6 billion, and net income up 15.5% to ¥49.7 billion, all exceeding prior outlooks.

• Performance Materials, especially semiconductor materials, drove record profits, while Chemicals and Agrochemicals also saw growth; Healthcare segment declined.

• Shareholder returns were robust, with a total payout ratio of 75.7% and a dividend increase to ¥202 per share.

• The company is executing its "Vista 2027" plan, focusing on expanding profits in core segments, developing new products, and strengthening its business foundation.

Financial highlights

• FY2025 sales reached ¥279.6 billion (+11% YoY), operating profit ¥63.6 billion (+12%), and net income ¥49.7 billion (+15%).

• EPS rose 18% to ¥368.26, and ROE improved to 20.3% (+1.6pt YoY).

• Free cash flow increased to ¥43.0 billion, and the equity ratio rose to 71.9%.

• Gross profit increased to ¥130.9 billion from ¥116.5 billion year-over-year.

• Dividend payout ratio was 54.9%, with a ¥10.5 billion share repurchase completed.

Outlook and guidance

• FY2026 sales are projected at ¥289.7 billion (+4% YoY), operating profit at ¥66.8 billion (+5%), and net income at ¥51.5 billion (+4%).

• Dividend forecast is ¥212 per share, with a continued total payout ratio target of 75%.

• Share repurchase of ¥10.5 billion announced for FY2026.

• Management targets include ROE ≥18%, operating profit margin ≥20%, and GHG emissions reduction by 30% from FY2018 by FY2027.