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Revision of earnings forecasts7985NEPON Inc.Construction and Materials

Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

The company announced its consolidated results for the fiscal year ending March 2026. Net sales increased 1.9% year on year, operating income rose 99.2%, and net income attributable to owners of the parent returned to profitability from a loss in the previous fiscal year. For the following consolidated fiscal year, the company forecasts net sales of ¥7,450 million, operating income of ¥60 million, ordinary income of ¥45 million, and net income of ¥30 million. It plans to reduce the dividend from ¥12 for the current fiscal year to ¥9.

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Revised forecast

Following consolidated fiscal year · Full year
Net Sales—→—
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Operating profit—→—
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Ordinary income—→—
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Profit attributable to owners of the parent—→—
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The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

No reason for the revision of the earnings forecast is provided. The main factors behind the results were increased orders for thermal equipment construction, curbs on purchases of materials and other items, and reductions in various expenses.

Details and amount of extraordinary loss

Loss on disposal of property, plant and equipment: ¥3.243 million; compensation payments: ¥16.009 million; other: ¥2.001 million; total extraordinary losses: ¥21.254 million. Impairment loss not allocated to reportable segments: ¥2.001 million.

Previous-period resultsNet sales: ¥7,277.473 million; operating income: ¥35.440 million; ordinary income: ¥73.399 million; net loss attributable to owners of the parent: -¥283.546 million; net loss per share: -¥296.13
Dividend forecast revisionThe dividend per share for the following fiscal year is expected to be ¥9, a reduction of ¥3 from ¥12 for the current fiscal year.
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net SalesNot disclosed → ¥7,450 million
Operating profitNot disclosed → ¥60 million
Ordinary incomeNot disclosed → ¥45 million
Profit attributable to owners of the parentNot disclosed → ¥30 million
Fiscal Period CoveredFollowing consolidated fiscal year
Period CoveredFull year
Previous-period resultsNet sales: ¥7,277.473 million; operating income: ¥35.440 million; ordinary income: ¥73.399 million; net loss attributable to owners of the parent: -¥283.546 million; net loss per share: -¥296.13
Reason for the revisionNo reason for the revision of the earnings forecast is provided. The main factors behind the results were increased orders for thermal equipment construction, curbs on purchases of materials and other items, and reductions in various expenses.
Details and amount of extraordinary lossLoss on disposal of property, plant and equipment: ¥3.243 million; compensation payments: ¥16.009 million; other: ¥2.001 million; total extraordinary losses: ¥21.254 million. Impairment loss not allocated to reportable segments: ¥2.001 million.
Dividend forecast revisionThe dividend per share for the following fiscal year is expected to be ¥9, a reduction of ¥3 from ¥12 for the current fiscal year.
Consolidated / non-consolidatedConsolidated
Items this document does not state (2)
Net income per sharePublication date of previous forecast

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.

The company explained that net sales increased due to growth in large-scale orders for low-cost horticultural facilities designed to withstand climate-related disasters, as well as orders for road-heating installation work. Profit improved as a result of curbing purchases of materials and other items and reducing various expenses. For the following fiscal year, the company cited concerns about downside risks to economic activity, including supply shortages and price increases for petroleum-based products and higher import prices due to the weaker yen. Regarding the dividend, it stated that it will prioritize allocating resources to research and development investment and other areas.

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Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated) | NEPON Inc. (7985) timely disclosure | Komori