Nikke (3201): FY2025 Results Summary — Record Profits Led by Industrial Machinery & Materials

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

The Nikke Group (Nippon Keori Co., Ltd.; TSE Prime, 3201) reported its consolidated results for the fiscal year ended November 30, 2025. Net sales rose 3.4% year on year to 119,377 million yen and operating profit rose 2.3% to 11,913 million yen, marking the fifth consecutive fiscal year of higher net sales and operating profit. According to the company, all profit indicators at and below operating profit reached record highs, with strong performances in the Industrial Machinery & Materials and Consumer Goods & Services businesses driving increases in both sales and profit.

Note: Nikke closes its books at the end of November. The company’s presentation labels the year ended November 30, 2025 as “2025” (this article’s FY2025) and its next-year outlook as “FY2026” (the year ending November 30, 2026); those labels are retained here.

Consolidated Results (Full-Year Actual)

Net sales, operating profit, ordinary profit and profit attributable to owners of parent all increased year on year. Ordinary profit rose 7.2% to 12,967 million yen. ROE was 7.1%, down 0.5 point from the prior year. The company also met the earnings forecast announced on July 11, 2025 at all profit levels at and below operating profit. Figures are in millions of yen.

Item (¥mn)	FY2025	FY2024	YoY
Net Sales	119,377	115,438	+3.4%
Operating Profit	11,913	11,640	+2.3%
Operating margin	10.0%	10.1%	-0.1pt
Ordinary Profit	12,967	12,098	+7.2%
Profit attributable to owners of parent	9,090	8,970	+1.3%
ROE	7.1%	7.6%	-0.5pt

Segment Results

Industrial Machinery & Materials led the group, with net sales up 14.1% and operating profit up 45.8%, supported by the consolidation of Kureha Tech and contributions from high-margin FA projects. Consumer Goods & Services grew operating profit 24.1%. Textile & Clothing Materials declined (operating profit -23.5%) as school uniform materials were hit by excess inventory across the distribution channel, and Human & Future Development saw operating profit edge down 2.9%. Figures are in millions of yen.

Segment	Net Sales FY2025	Net Sales FY2024	Operating Profit FY2025	Operating Profit FY2024
Textile & Clothing Materials	30,282	31,557	2,645	3,455
Industrial Machinery & Materials	35,177	30,836	2,875	1,972
Human & Future Development	26,679	26,488	6,772	6,977
Consumer Goods & Services	23,199	22,527	1,051	847
Others	4,038	4,028	-1,432	-1,611
Total	119,377	115,438	11,913	11,640

FY2026 Forecast

For the fiscal year ending November 30, 2026 (the final year of the RN130 Third Medium-Term Management Plan), Nikke forecasts net sales of 130,000 million yen (+8.9%) and operating profit of 13,000 million yen (+9.1%). The company expects earnings contributions from real estate redevelopment, the full-year consolidation of Kako Technos, and a recovery in the Textile & Clothing Materials business. Figures are in millions of yen.

Item (¥mn)	FY2026 Forecast	FY2025 Actual	YoY
Net Sales	130,000	119,377	+8.9%
Operating Profit	13,000	11,913	+9.1%
Operating margin	10.0%	10.0%	-0.0pt
Ordinary Profit	13,400	12,967	+3.3%
Profit attributable to owners of parent	9,500	9,090	+4.5%

Segment	Net Sales (Forecast)	Operating Profit (Forecast)	Operating margin
Textile & Clothing Materials	34,000	3,400	10.0%
Industrial Machinery & Materials	43,000	3,000	7.0%
Human & Future Development	26,000	7,200	27.7%
Consumer Goods & Services	23,000	1,200	5.2%
Others	4,000	-1,800	–
Total	130,000	13,000	10.0%

Shareholder Returns

Nikke maintains a “progressive dividend” policy that does not reduce dividends, and it has not cut its dividend once in the 50 years since 1976. For the fiscal year ended November 2025, it plans to raise the annual dividend by 5 yen from the initial forecast to 47 yen per share. Its targets for the final year of the medium-term plan (the year ending November 2026) of a 35% dividend payout ratio and a 2.5% DOE were both achieved ahead of schedule in the year ended November 2025, and the year ending November 2026 is expected to mark the eighth consecutive year of dividend increases.

On share buybacks: in October 2025 the company repurchased 2 million shares (2.90% of shares issued, excluding treasury shares), and on January 15, 2026 the Board resolved to repurchase up to 2 million shares (2.98%), for a maximum total of 4,000 million yen, over the period January 15, 2026 to May 22, 2026.

Medium-Term Plan / Topics

Under the RN130 (Renewal Nikke 130) Vision Third Medium-Term Management Plan (2024-2026), FY2025 net sales (119,377 million yen) and operating profit (11,913 million yen) fell short of the plan targets (120,000 million yen and 12,000 million yen), while ordinary profit (12,967 million yen) and profit attributable to owners of parent (9,090 million yen) exceeded their plan targets (12,400 million yen and 7,800 million yen). Key topics during the year included the acquisition of shares in Kako Technos Group Co., Ltd. to expand the FA equipment and machinery field, selection for NEDO’s “Bio-manufacturing Revolution Promotion Project” for fiber-to-fiber recycling, and the January 15, 2026 board resolution on the share buyback noted above.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.