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Presentation materials for financial results5214Nippon Electric Glass Co.,Ltd.Construction and Materials

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of the fiscal year ending December 2026, revenue exceeded the prior-year period, while operating income and net income declined. The full-year forecast was revised downward, including a reduction in the operating income forecast from ¥33.0 billion to ¥20.0 billion. The company will pursue structural reforms in the composites business and investment in growth areas.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-130
¥100 million (operating income forecast revision)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,564 Hundreds of millions of yen+1.7%
Operating profit113 Hundreds of millions of yen-31.8%
Ordinary income162 Hundreds of millions of yen+14.7%
Net income64 Hundreds of millions of yen-36.5%
Operating profit margin
Rate7.3
Year-on-year change (points)Down 3.5 percentage points from 10.8% in the prior-year period
Results for the three months of the current quarter
Net Sales
813 Hundreds of millions of yen
Operating profit
48 Hundreds of millions of yen
Ordinary income
73 Hundreds of millions of yen
Profit attributable to owners of parent for the quarter
-19 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
3,000 Hundreds of millions of yen
Operating profit
200 Hundreds of millions of yen
Operating profit margin
6.7 %
Ordinary income
250 Hundreds of millions of yen
Profit attributable to owners of the parent
150 Hundreds of millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Factors behind the increase
  • Higher selling prices and increased sales volumes in the Display business
Factors reducing profit
  • Conversion of the Display business's facilities to all-electric melting and higher scheduled maintenance expenses
  • Higher startup costs for glass manufacturing equipment for the Medical business
  • Higher raw material and fuel prices, among other factors
Operating income forecast revision
Factors reducing profit
  • Lower sales volumes in the Display business
  • Delays in productivity improvements in the Composites business
  • Higher raw material and fuel prices, among other factors, including foreign exchange effects
  • Costs associated with closing the Composites business's sites in Europe and North America
Extraordinary Gains and Losses
Business structure improvement costs-129 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed Exchange Rates
  • ¥160 per US dollar
  • ¥185 per euro
Economic outlookThe outlook is expected to remain uncertain due to a slowdown in the Chinese economy and renewed tensions in the Middle East, among other factors.
New initiatives
  • Suspension of production at EGFA's Shelby plant
  • Transfer of EGFA's Lexington plant
  • Withdrawal from glass fiber production in North America
  • Investment in and commencement of production of low-dielectric glass fiber (D2 fiber)
  • Development of low-expansion glass fiber
  • Expansion of the optical communications-related products and semiconductor-related products businesses
  • Expansion of sales of new cooktop products
Key KPIsA metric the company considers important as a management benchmark.
  • Operating margin7.3 %
    Year on year against the same period last year-3.5%
  • Consolidated number of employees5,164 People
  • DOE target (fiscal year ending December 2028)3 %
  • Projected demand for microcapillaries4.5 times
    Year on year against the same period last yearCompared with 2023
  • Projected demand for glass polarizers8 times
    Year on year against the same period last yearCompared with 2023
Segment results
Electronics and information
Net Sales
887 Hundreds of millions of yen
Year on year against the same period last yearIncreased
Functional Materials
Net Sales
676 Hundreds of millions of yen
Year on year against the same period last yearDecreased
Displays
Year on year against the same period last yearIncreased
Electronic Devices
Year on year against the same period last yearBroadly unchanged year on year
Composites
Year on year against the same period last yearDecreased
Medical, heat-resistant materials and construction
Year on year against the same period last yearBroadly unchanged year on year
Medium-term management plan targets
Target fiscal yearFY2028 December
DOE3.0%
Number of employees
5,164 People
As ofEnd of June 2026
Capital expenditures
450 Approximately ¥100 million on a completion basis
Annual Dividend
¥160 per share
Interim80
End of period80
Acquisition of treasury shares
200 Hundreds of millions of yen
PeriodFiscal year ending December 2026, currently in progress (announced on 6 February 2026)
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales1,564 Hundreds of millions of yen (YoY +1.7%)
Operating profit113 Hundreds of millions of yen (YoY -31.8%)
Ordinary income162 Hundreds of millions of yen (YoY +14.7%)
Net income64 Hundreds of millions of yen (YoY -36.5%)
Operating profit marginRate 7.3 / Year-on-year change (points) Down 3.5 percentage points from 10.8% in the prior-year period
Results for the three months of the current quarterNet Sales 813 Hundreds of millions of yen / Operating profit 48 Hundreds of millions of yen / Ordinary income 73 Hundreds of millions of yen / Profit attributable to owners of parent for the quarter -19 Hundreds of millions of yen
Full-year earnings forecastNet Sales 3,000 Hundreds of millions of yen / Operating profit 200 Hundreds of millions of yen / Operating profit margin 6.7 % / Ordinary income 250 Hundreds of millions of yen / Profit attributable to owners of the parent 150 Hundreds of millions of yen
Segment resultsElectronics and information Net Sales 887 Hundreds of millions of yen / Year on year against the same period last year Increased / Functional Materials Net Sales 676 Hundreds of millions of yen / Year on year against the same period last year Decreased / Displays Net Sales Not disclosed / Year on year against the same period last year Increased / Electronic Devices Net Sales Not disclosed / Year on year against the same period last year Broadly unchanged year on year / Composites Net Sales Not disclosed / Year on year against the same period last year Decreased / Medical, heat-resistant materials and construction Net Sales Not disclosed / Year on year against the same period last year Broadly unchanged year on year
Breakdown of Factors Affecting the ChangeOperating profit Factors behind the increase Higher selling prices and increased sales volumes in the Display business / Factors reducing profit Conversion of the Display business's facilities to all-electric melting and higher scheduled maintenance expenses, Higher startup costs for glass manufacturing equipment for the Medical business, Higher raw material and fuel prices, among other factors / Operating income forecast revision Factors reducing profit Lower sales volumes in the Display business, Delays in productivity improvements in the Composites business, Higher raw material and fuel prices, among other factors, including foreign exchange effects, Costs associated with closing the Composites business's sites in Europe and North America / Extraordinary Gains and Losses Business structure improvement costs -129 Hundreds of millions of yen
Key KPIsIndicator name Operating margin / Value 7.3 % / Year on year against the same period last year -3.5 %, Indicator name Consolidated number of employees / Value 5,164 People / Year on year against the same period last year Not disclosed, Indicator name DOE target (fiscal year ending December 2028) / Value 3 % / Year on year against the same period last year Not disclosed, Indicator name Projected demand for microcapillaries / Value 4.5 times / Year on year against the same period last year Compared with 2023, Indicator name Projected demand for glass polarizers / Value 8 times / Year on year against the same period last year Compared with 2023
Number of employees5,164 People
Assumptions Underlying the Business OutlookAssumed Exchange Rates ¥160 per US dollar, ¥185 per euro / Economic outlook The outlook is expected to remain uncertain due to a slowdown in the Chinese economy and renewed tensions in the Middle East, among other factors.
Medium-term management plan targetsTarget fiscal year FY2028 December / DOE 3.0%
Annual Dividend¥160 per share
Acquisition of treasury sharesAmount 200 Hundreds of millions of yen / Period Fiscal year ending December 2026, currently in progress (announced on 6 February 2026)
Capital expenditures450 Approximately ¥100 million (on a completion basis)
New initiativesSuspension of production at EGFA's Shelby plant, Transfer of EGFA's Lexington plant, Withdrawal from glass fiber production in North America, Investment in and commencement of production of low-dielectric glass fiber (D2 fiber), Development of low-expansion glass fiber, Expansion of the optical communications-related products and semiconductor-related products businesses, Expansion of sales of new cooktop products
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Factors behind the decline in operating income included equipment conversion and scheduled maintenance expenses in the Display business, startup costs for equipment for the Medical business, and higher raw material and fuel prices. Factors behind the downward revision to the full-year forecast included lower sales volumes in the Display business, delays in productivity improvements in the Composites business, higher raw material and fuel prices, and costs associated with closing the Composites business's sites in Europe and North America.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | Nippon Electric Glass Co.,Ltd. (5214) timely disclosure | Komori