TOPPAN (7911) Q4 2026 earnings summary

Executive summary

• Net sales increased 5% year-over-year to ¥1,805.0 billion, driven by M&A activity, but operating profit declined 21% to ¥67.1 billion due to underperformance in North American food packaging, delayed recovery in FC-BGA, and the deconsolidation of Tekscend Photomask (TPC).

• Profit attributable to owners dropped 28.1% to ¥64.8 billion.

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

• The company implemented a new currency conversion policy and restructured its business segments.

• ROE exceeded 5%, and non-GAAP profit excluding M&A and other costs decreased by 3.5%.

Financial highlights

• Net sales: ¥1,805.0bn (+5% YoY); Operating profit: ¥67.1bn (-21% YoY); Non-GAAP operating profit: ¥94.1bn (-3.5% YoY); EBITDA: ¥154.8bn; EPS: ¥227.07; Book value per share: ¥4,742.83; Dividend per share: ¥58.00.

• Gross profit margin declined by 0.5pt to 23.5%; SG&A ratio rose to 19.8%.

• Profit attributable to owners: ¥64.8bn (-28.1% YoY); ROE: 4.9%.

• Equity ratio improved to 52.3% from 51.4% YoY.

• Cash and cash equivalents at year-end fell by ¥341.9bn to ¥411.1bn, mainly due to large-scale acquisitions.

Outlook and guidance

• FY2026 forecast: Net sales ¥1,925.0bn (+6.6% YoY), operating profit ¥80.0bn (+19.2%), non-GAAP operating profit ¥101.0bn (+7.3%).

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

• Net profit forecast to decline to ¥55.0bn (-15.1% YoY) due to extraordinary items.

• Guidance does not include potential impacts from Middle East geopolitical risks.

• Strategic focus on digital, sustainable transformation, and business unit restructuring to drive future growth.