Worth reading
69In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
272
¥100 million (increase in FY2026 revenue from the previous fiscal year's actual result)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFY2025 (fiscal year ended March 2026) results and FY2026 full-year outlook13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales9,727 Hundreds of millions of yen+103.0%
Operating profit447 Hundreds of millions of yen+114.0%
Ordinary income440 Hundreds of millions of yen+115.0%
Net income331 Hundreds of millions of yen+130.0%
Selling, general and administrative expenses1,429 Hundreds of millions of yen
Gross Profit Margin
Rate19.3%
Year-on-year change (points)Improved by 1.0 ppt year on year
Operating profit margin
Rate4.6%
Year-on-year change (points)Improved by 0.5 ppt year on year
Results for the three months of the current quarterQuarterly standalone results for Q1 through Q4 are provided for each segment. Standalone quarterly consolidated figures are not disclosed in the consolidated income statement.
Full-year earnings forecast
Net Sales
10,000 Hundreds of millions of yen
Gross profit
1,980 Hundreds of millions of yen
Operating profit
450 Hundreds of millions of yen
Ordinary income
450 Hundreds of millions of yen
Net income
345 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance has been stronger than expectedBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Business expansion and front-loaded demand related to the situation in the Middle EastMain driver of the increase in gross profit (individual amount 非開示)
- Provision for doubtful accounts recorded by the Prinova Group in the previous fiscal yearApproximately ¥1.3 billion
- Retirement benefit expenses related to the amortization of actuarial gains and lossesGain of approximately ¥3.5 billion in FY2024; loss of approximately ¥0.3 billion in FY2025
- Loss on withdrawal from the thin glass substrate processing business in ChinaApproximately ¥2.7 billion
- Gain on bargain purchaseApproximately ¥1.7 billion
- Gain on sales of investment securities and other assetsApproximately ¥3.9 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- FY2025: ¥150.7; FY2026: ¥155.0AssumptionsUS$ exchange rate (period average)
- FY2025: ¥21.2; FY2026: ¥22.5AssumptionsRMB exchange rate (period average)
- Approximately ¥50 millionAssumptionsImpact on operating profit of a ¥1 depreciation against the US$
- Approximately ¥400 millionAssumptionsImpact on operating profit of a ¥1 depreciation against the RMB
New initiatives
- Reorganization from 5 segments into 3 segments
- Establishment of a biotechnology research center using robotics, AI and other technologies
- Launch of Nagase Food Solutions Co., Ltd. in July 2026
- Execution of growth investment allocations of ¥70 billion, ¥10 billion and ¥20 billion
- Launch of a high-purity chemical recovery and recycling business
- Development of new materials, next-generation encapsulants, sugar-derived microbeads and other products
Key KPIsA metric the company considers important as a management benchmark.
- ROE8.0%Year on year against the same period last yearImproved from 6.4% in FY2024
- Equity ratio48.8%Year on year against the same period last yearDown 0.6 ppt year on year
- NET D/E ratio0.34 timesYear on year against the same period last yearUp 0.07 year on year
- Scope 1 and 2 reduction rate49.2%
- Employee engagement survey (non-consolidated)61.7 Score
- Employee engagement survey participation rate (Group)100%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The relationship between volume and profit margins and product mix is described. For example, Processing Materials saw lower sales volume but higher margins due to an improved product mix. Nagase Viita saw lower volume but improved margins due to cost reductions.Segment results
- Functional materialsNet Sales¥153.6 billionOperating profit¥9.3 billionYear on year against the same period last yearRevenue 99%; operating profit 101%
- Processed materialsNet Sales¥206.6 billionOperating profit¥7.6 billionYear on year against the same period last yearRevenue 98%; operating profit 115%
- Electronics and energyNet Sales¥172.8 billionOperating profit¥14.8 billionYear on year against the same period last yearRevenue 107%; operating profit 120%
- MobilityNet Sales¥130.2 billionOperating profit¥3.7 billionYear on year against the same period last yearRevenue 99%; operating profit 88%
- Life-relatedNet Sales¥309.2 billionOperating profit¥9.8 billionYear on year against the same period last yearRevenue 108%; operating profit 288%
Medium-term management plan targets
- PlanWalk the Talk 2028Target fiscal yearFY2028TargetOperating profit of at least ¥50 billion; ROE of at least 9.0%
- PlanWalk the Talk 2028Target fiscal yearFY2028TargetOperating profit by segment: Materials ¥22 billion, Electronics ¥17 billion, Life Sciences ¥11 billion
Financial targets
ROE: ACE 2.0 target of at least 8.0%; FY2025 actual result of 8.0%. Walk the Talk 2028 target of at least 9.0%. Operating profit: ACE 2.0 target of ¥35 billion; FY2025 actual result of ¥44.7 billion.Market Size / Share
The materials state that the Prinova Group is expanding its market share in food ingredient sales, but the share figure is Not disclosed.Capital expenditures
¥495 100 million FY2025 investment in fixed assets
Annual Dividend
FY2026 planned annual dividend: ¥27 per share (¥13 interim and ¥14 year-end). The company expects to increase the dividend for the 17th consecutive fiscal year.Acquisition of treasury shares
¥23 billion spent on share repurchases in FY2025. The number of shares and repurchase period under the repurchase program are Not disclosed. The company plans to conduct share repurchases flexibly through FY2028.| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | FY2025 (fiscal year ended March 2026) results and FY2026 full-year outlook |
| Net Sales | 9,727 Hundreds of millions of yen (YoY +103.0%) |
| Operating profit | 447 Hundreds of millions of yen (YoY +114.0%) |
| Ordinary income | 440 Hundreds of millions of yen (YoY +115.0%) |
| Net income | 331 Hundreds of millions of yen (YoY +130.0%) |
| Gross Profit Margin | Rate 19.3% / Year-on-year change (points) Improved by 1.0 ppt year on year |
| Operating profit margin | Rate 4.6% / Year-on-year change (points) Improved by 0.5 ppt year on year |
| Selling, general and administrative expenses | 1,429 Hundreds of millions of yen |
| Results for the three months of the current quarter | Quarterly standalone results for Q1 through Q4 are provided for each segment. Standalone quarterly consolidated figures are not disclosed in the consolidated income statement. |
| Full-year earnings forecast | Net Sales 10,000 Hundreds of millions of yen / Gross profit 1,980 Hundreds of millions of yen / Operating profit 450 Hundreds of millions of yen / Ordinary income 450 Hundreds of millions of yen / Net income 345 Hundreds of millions of yen |
| Self-assessment against the plan | Performance has been stronger than expected |
| Segment results | Segment Functional materials / Net Sales ¥153.6 billion / Operating profit ¥9.3 billion / Year on year against the same period last year Revenue 99%; operating profit 101%, Segment Processed materials / Net Sales ¥206.6 billion / Operating profit ¥7.6 billion / Year on year against the same period last year Revenue 98%; operating profit 115%, Segment Electronics and energy / Net Sales ¥172.8 billion / Operating profit ¥14.8 billion / Year on year against the same period last year Revenue 107%; operating profit 120%, Segment Mobility / Net Sales ¥130.2 billion / Operating profit ¥3.7 billion / Year on year against the same period last year Revenue 99%; operating profit 88%, Segment Life-related / Net Sales ¥309.2 billion / Operating profit ¥9.8 billion / Year on year against the same period last year Revenue 108%; operating profit 288% |
| Breakdown of Factors Affecting the Change | Factors Business expansion and front-loaded demand related to the situation in the Middle East / Amount Main driver of the increase in gross profit (individual amount Not disclosed), Factors Provision for doubtful accounts recorded by the Prinova Group in the previous fiscal year / Amount Approximately ¥1.3 billion, Factors Retirement benefit expenses related to the amortization of actuarial gains and losses / Amount Gain of approximately ¥3.5 billion in FY2024; loss of approximately ¥0.3 billion in FY2025, Factors Loss on withdrawal from the thin glass substrate processing business in China / Amount Approximately ¥2.7 billion, Factors Gain on bargain purchase / Amount Approximately ¥1.7 billion, Factors Gain on sales of investment securities and other assets / Amount Approximately ¥3.9 billion |
| Key KPIs | Indicator name ROE / Value 8.0% / Year on year against the same period last year Improved from 6.4% in FY2024, Indicator name Equity ratio / Value 48.8% / Year on year against the same period last year Down 0.6 ppt year on year, Indicator name NET D/E ratio / Value 0.34 times / Year on year against the same period last year Up 0.07 year on year, Indicator name Scope 1 and 2 reduction rate / Value 49.2% / Year on year against the same period last year Not disclosed, Indicator name Employee engagement survey (non-consolidated) / Value 61.7 Score / Year on year against the same period last year Not disclosed, Indicator name Employee engagement survey participation rate (Group) / Value 100% / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The relationship between volume and profit margins and product mix is described. For example, Processing Materials saw lower sales volume but higher margins due to an improved product mix. Nagase Viita saw lower volume but improved margins due to cost reductions. |
| Assumptions Underlying the Business Outlook | Assumptions US$ exchange rate (period average) / Value FY2025: ¥150.7; FY2026: ¥155.0, Assumptions RMB exchange rate (period average) / Value FY2025: ¥21.2; FY2026: ¥22.5, Assumptions Impact on operating profit of a ¥1 depreciation against the US$ / Value Approximately ¥50 million, Assumptions Impact on operating profit of a ¥1 depreciation against the RMB / Value Approximately ¥400 million |
| Medium-term management plan targets | Plan Walk the Talk 2028 / Target fiscal year FY2028 / Target Operating profit of at least ¥50 billion; ROE of at least 9.0%, Plan Walk the Talk 2028 / Target fiscal year FY2028 / Target Operating profit by segment: Materials ¥22 billion, Electronics ¥17 billion, Life Sciences ¥11 billion |
| Financial targets | ROE: ACE 2.0 target of at least 8.0%; FY2025 actual result of 8.0%. Walk the Talk 2028 target of at least 9.0%. Operating profit: ACE 2.0 target of ¥35 billion; FY2025 actual result of ¥44.7 billion. |
| Annual Dividend | FY2026 planned annual dividend: ¥27 per share (¥13 interim and ¥14 year-end). The company expects to increase the dividend for the 17th consecutive fiscal year. |
| Acquisition of treasury shares | ¥23 billion spent on share repurchases in FY2025. The number of shares and repurchase period under the repurchase program are Not disclosed. The company plans to conduct share repurchases flexibly through FY2028. |
| Capital expenditures | ¥495 100 million (FY2025 investment in fixed assets) |
| Market Size / Share | The materials state that the Prinova Group is expanding its market share in food ingredient sales, but the share figure is Not disclosed. |
| New initiatives | Reorganization from 5 segments into 3 segments, Establishment of a biotechnology research center using robotics, AI and other technologies, Launch of Nagase Food Solutions Co., Ltd. in July 2026, Execution of growth investment allocations of ¥70 billion, ¥10 billion and ¥20 billion, Launch of a high-purity chemical recovery and recycling business, Development of new materials, next-generation encapsulants, sugar-derived microbeads and other products |
Items this document does not state (7)
Progress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders 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.Profit increased in FY2025 due to business expansion, front-loaded demand related to the situation in the Middle East, increased sales of semiconductor materials and modified epoxy resins for AI semiconductors, and business improvements and efficiency gains at the Prinova Group. For FY2026, the company expects steady business performance, a return to profitability in the Prinova Nutrition business, a profit contribution from the diagnostic reagents business and lower retirement benefit expenses, while factoring in a decline following the previous year's front-loaded demand, memory shortages, upfront investments for growth and office relocation costs.
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