TOPPAN (7911) Q4 2026 earnings summary

Executive summary

• Net sales for FY2025 rose 5% year-on-year to JPY 1.805 trillion, driven by M&A activity, but operating profit declined 21% to JPY 67.1 billion due to weak North American packaging, delayed FC-BGA recovery, and deconsolidation of Tekscend Photomask.

• Non-GAAP operating profit fell 3.5% to JPY 94.1 billion, missing revised forecasts.

• ROE reached 5.4% on a non-GAAP basis and 4.9% on a GAAP basis, meeting the 5% target.

• Major acquisitions in packaging and identity solutions, and a significant divestiture in the electronics segment, shaped results.

• Segment performance was mixed: Living & Industry grew sales significantly, Information & Communication was flat, and Electronics saw a sharp profit drop.

Financial highlights

• Net sales: JPY 1.805 trillion (+5% YoY); non-GAAP operating profit: JPY 94.1 billion (-3.5% YoY); operating profit: JPY 67.1 billion (-21% YoY).

• EBITDA: JPY 154.8 billion; EPS: JPY 227.07; book value per share: JPY 4,742.83; dividend per share: JPY 58.00.

• Gross profit margin declined by 0.5pp to 23.5%, mainly due to deconsolidation of Tekscend Photomask and delayed FCBGA recovery.

• SG&A expense ratio increased by 0.7pp to 19.8% due to newly consolidated subsidiaries.

• Ordinary profit rose to JPY 8.6 billion from JPY 4.5 billion, driven by JPY 5.8 billion in equity method gains from Tekscend Photomask.

Outlook and guidance

• FY2026 guidance: net sales to grow 6.6% YoY to JPY 1.925 trillion; non-GAAP operating profit to rise 7.3% to JPY 101 billion; operating profit to increase 19.2% to JPY 80 billion; non-GAAP net profit to increase 5.2% to JPY 75 billion; non-GAAP ROE to reach 5.7%.

• Non-GAAP EPS expected to rise 8.4% to JPY 270.78; dividend per share maintained at JPY 58.

• Net profit forecast to decline to JPY 55 billion (-15.1% YoY) due to extraordinary items.

• JPY 50 billion in treasury share purchases planned for FY2026.

• Segment forecasts: Information Solutions (+4.6% sales, +14.2% profit), Living and Industry (+14.4% sales, +26% profit), Electronics (-13% sales, -29.6% profit).