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Presentation materials for financial results7943NICHIHA CORPORATIONConstruction and Materials

Preliminary Earnings Presentation for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue and net income were below the previous year's results and the revised forecast, while operating income and ordinary income were substantially higher than the previous year but fell short of the forecast. For the fiscal year ending March 2027, revenue and ordinary income are expected to decline, while operating income and net income are expected to increase.

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Contents of this document

Presentation materials for financial resultsFiscal year ending March 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥143,740 million-3.2%
Operating profit¥9,355 million+34.6%
Ordinary income¥10,246 million+41.3%
Net income¥2,486 million-8.1%
Gross Profit Margin35.9%, up 1.7 percentage points year on year (from 34.2%)
Operating profit margin6.5%, up 1.8 percentage points year on year (from 4.7%)
Full-year earnings forecast
Net Sales
¥141,000 million
Operating profit
¥9,600 million
Ordinary income
¥9,800 million
Profit attributable to owners of the parent
¥8,000 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Domestic business operating profit
Sales factor10.2 Hundreds of millions of yen
Change in inventory (manufacturing fixed costs)4.3 Hundreds of millions of yen
Change in materials and energy costs2 Hundreds of millions of yen
Increase in logistics costs-1 Hundreds of millions of yen
Change in fixed costs4.7 Hundreds of millions of yen
U.S. business operating income
Change in sales6.4 US$ million
Change in gross margin2.3 US$ million
Change in inventory-5 US$ million
Change in inventory write-offs3.1 US$ million
Change in fixed costs-2.4 US$ million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
New housing startsDown 0.3% year on year
Industry-wide siding sales volume
23,400 thousand tsubo
Period_on_period_pct-4.5
Exchange rate per US$1
¥155
Exchange rate per yuan
¥22
Crude Oil Prices
90 US$ per barrel
New initiatives
  • Capital investment in a new logistics warehouse
    Amount¥2,029 million
Key KPIsA metric the company considers important as a management benchmark.
  • New housing starts711 thousand households
    Year-on-year (%)-12.9
  • Industry-wide siding sales volume24,498 thousand tsubo
    Year-on-year (%)-2.8
  • The Company's fiber cement siding sales volume14,333 thousand tsubo
    Year-on-year (%)-4.4
  • Industry share58.5 %
    Year-on-year_pt-1
  • U.S. ABI (commercial and industrial)52.5 Index
Segment results
  • Domestic
    Net Sales¥115,269 million
    Operating profit¥6,560 million
    Operating profit year-on-year_pct44.7
  • United States
    Net Sales¥29,584 million
    Operating profit¥1,875 million
    Operating profit year-on-year_pct-6.6
  • China
    Net Sales¥3,930 million
    Operating profit¥342 million
    Operating profit year-on-year_pct121
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
-10 Hundreds of millions of yen
DetailsEnergy costs arising from higher crude oil prices due to heightened tensions in the Middle East
Market Size / Share
Industry-wide siding sales volume
24,498 thousand tsubo
Industry share
58.5 %
Capital expenditures
38.6 Hundreds of millions of yen
Annual Dividend
¥114 per share
Interim57
End of period57
Payout ratio
47.3
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥143,740 million (YoY -3.2%)
Operating profit¥9,355 million (YoY +34.6%)
Ordinary income¥10,246 million (YoY +41.3%)
Net income¥2,486 million (YoY -8.1%)
Gross Profit Margin35.9%, up 1.7 percentage points year on year (from 34.2%)
Operating profit margin6.5%, up 1.8 percentage points year on year (from 4.7%)
Full-year earnings forecastNet Sales ¥141,000 million / Operating profit ¥9,600 million / Ordinary income ¥9,800 million / Profit attributable to owners of the parent ¥8,000 million
Segment resultsSegment Domestic / Net Sales ¥115,269 million / Operating profit ¥6,560 million / Operating profit year-on-year_pct 44.7, Segment United States / Net Sales ¥29,584 million / Operating profit ¥1,875 million / Operating profit year-on-year_pct -6.6, Segment China / Net Sales ¥3,930 million / Operating profit ¥342 million / Operating profit year-on-year_pct 121
Breakdown of Factors Affecting the ChangeDomestic business operating profit Sales factor 10.2 Hundreds of millions of yen / Change in inventory (manufacturing fixed costs) 4.3 Hundreds of millions of yen / Change in materials and energy costs 2 Hundreds of millions of yen / Increase in logistics costs -1 Hundreds of millions of yen / Change in fixed costs 4.7 Hundreds of millions of yen / U.S. business operating income Change in sales 6.4 US$ million / Change in gross margin 2.3 US$ million / Change in inventory -5 US$ million / Change in inventory write-offs 3.1 US$ million / Change in fixed costs -2.4 US$ million
Key KPIsNew housing starts 711 thousand households, Industry-wide siding sales volume 24,498 thousand tsubo, The Company's fiber cement siding sales volume 14,333 thousand tsubo, Industry share 58.5 %, U.S. ABI (commercial and industrial) 52.5 Index
Assumptions Underlying the Business OutlookNew housing starts Down 0.3% year on year / Industry-wide siding sales volume 23,400 thousand tsubo / Exchange rate per US$1 ¥155 / Exchange rate per yuan ¥22 / Crude Oil Prices 90 US$ per barrel
Risk amount incorporated into the outlook-10 Hundreds of millions of yen
Annual Dividend¥114 per share
Payout ratio47.3
Capital expenditures38.6 Hundreds of millions of yen
Market Size / ShareIndustry-wide siding sales volume 24,498 thousand tsubo / Industry share 58.5 %
New initiativesMeasures Capital investment in a new logistics warehouse / Amount ¥2,029 million
Items this document does not state (12)
Selling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesOrders received and order backlogKey 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.

For the domestic business, the company cited changes in sales volume, price revisions, inventory levels, materials and energy costs, logistics expenses, and fixed costs as factors affecting changes in operating income. For the U.S. business, it cited changes in sales volume, the contribution margin, inventory, inventory write-offs, and fixed costs. Net income included an extraordinary loss of ¥5,401 million related to the withdrawal from the U.S. general-purpose exterior materials business for residential housing.

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Preliminary Earnings Presentation for the Fiscal Year Ending March 2026 | NICHIHA CORPORATION (7943) timely disclosure | Komori