Nissan Chemical (4021): FY2025 Results Summary — Record Profits Driven by Semiconductor Materials

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Nissan Chemical Corporation reported consolidated results for FY2025 (April 1, 2025 – March 31, 2026), with sales up ¥28.2 billion (+11%) to ¥279.6 billion, operating profit up ¥6.8 billion (+12%) to ¥63.6 billion, and net income up ¥6.7 billion (+15%) to ¥49.7 billion. Operating profit, ordinary income and net income set the highest results, and ROE for FY2025 was 20.3% (+1.6pt). Results also exceeded the company’s outlook as of November 2025, with sales above target by ¥7.4 billion, operating profit by ¥4.6 billion, and net income by ¥5.7 billion.

Consolidated Results (Full-Year Actual)

Full-year operating profit growth was driven by sales increases in Semis Materials and Inorganic Materials in the Performance Materials segment, as well as sales increases in Fluralaner, GRACIA, LEIMAY and VERDAD in Agrochemicals. EBITDA rose ¥7.9 billion (+11%) to ¥79.1 billion, and EPS increased ¥55.00 (+18%) to ¥368.26. The average exchange rate for the year was ¥151/$, compared with ¥153/$ in FY2024.

Item (¥billion)	FY2025	FY2024	YOY Change
Sales	279.6	251.4	+28.2 (+11%)
Operating Profit	63.6	56.8	+6.8 (+12%)
Ordinary Income	65.9	58.0	+7.9 (+14%)
Net Income	49.7	43.0	+6.7 (+15%)
EBITDA	79.1	71.2	+7.9 (+11%)
EPS (¥/share)	368.26	313.26	+55.00 (+18%)
OP Margin	22.7%	22.6%	+0.1pt
ROE	20.3%	18.7%	+1.6pt

On cash flows, free cash flow in FY2025 was ¥43.0 billion, an increase of ¥1.4 billion from FY2024, with cash flow from operating activities of ¥64.2 billion. On the balance sheet, total assets stood at ¥355.1 billion as of March 2026, the equity ratio was 71.9% (70.5% as of March 2025), and the net D/E ratio was 0.01.

Segment Results

Performance Materials led the year, with sales up ¥13.3 billion (+13%) to ¥113.4 billion and operating profit up ¥6.0 billion (+20%) to ¥35.3 billion. Within the segment, Semis Materials sales rose +27% year on year, Inorganic Materials rose +6%, and Display Materials declined -1%. Agrochemicals sales rose ¥10.0 billion (+12%) to ¥96.2 billion on higher sales of ROUNDUP, ALTAIR, GRACIA, LEIMAY, VERDAD and Fluralaner, while segment operating profit was flat (+0.1 billion) as fixed cost and others increased. Chemicals posted higher sales and profit on Fine Chemicals and Basic Chemicals (including high purity sulfuric acid, where demand increased for semiconductors), while Healthcare sales and profit declined on lower Custom Chemicals sales. Note: from FY2025 a new method for calculating operating profit by segment was adopted, and FY2024 actual figures have been restated on the new basis.

Segment (¥billion)	Metric	FY2025	FY2024	YOY Change
Performance Materials	Sales	113.4	100.1	+13.3 (+13%)
Performance Materials	OP	35.3	29.3	+6.0 (+20%)
Agrochemicals	Sales	96.2	86.2	+10.0 (+12%)
Agrochemicals	OP	26.0	25.9	+0.1 (0%)
Chemicals	Sales	39.3	37.8	+1.5 (+4%)
Chemicals	OP	1.1	0.4	+0.7 (+200%)
Healthcare	Sales	5.2	6.0	-0.8 (-13%)
Healthcare	OP	1.4	1.9	-0.5 (-30%)
Trading, Others, Adjustment	Sales	25.5	21.3	+4.2
Trading, Others, Adjustment	OP	-0.2	-0.7	+0.5
Total	Sales	279.6	251.4	+28.2 (+11%)
Total	OP	63.6	56.8	+6.8 (+12%)

FY2026 Forecast

For FY2026, the company forecasts sales of ¥289.7 billion (up ¥10.1 billion, +4%), operating profit of ¥66.8 billion (up ¥3.2 billion, +5%), and net income of ¥51.5 billion (up ¥1.8 billion, +4%), with an ROE outlook of 19.6%. The assumed exchange rate is ¥150/$. By segment, operating profit is expected to increase on higher Semis Materials sales in Performance Materials, higher Basic Chemicals sales in Chemicals, and higher ROUNDUP and LEIMAY sales in Agrochemicals, while Healthcare operating profit is expected to decrease on higher fixed cost and others. Semis Materials sales are forecast to grow +18% year on year in FY2026. The company notes the direct impact of the Middle East situation is limited, and that it will continue to monitor potential impacts on the overall market supply chain.

Item (¥billion)	FY2026 Forecast	FY2025 (Actual)	YOY Change
Sales	289.7	279.6	+10.1 (+4%)
Operating Profit	66.8	63.6	+3.2 (+5%)
Ordinary Income	68.8	65.9	+2.9 (+4%)
Net Income	51.5	49.7	+1.8 (+4%)
EBITDA	85.4	79.1	+6.3 (+8%)
EPS (¥/share)	387.11	368.26	+18.85 (+5%)
Dividend (¥/share)	212	202	+10
ROE	19.6%	20.3%	-0.7pt

Shareholder Returns

The FY2025 annual dividend was ¥202 per share, up ¥28 versus FY2024 and up ¥26 versus the FY2025 initial outlook. The company also completed a ¥10.5 billion share repurchase program (2.2 million shares), bringing the total payout ratio to 75.7% and the dividend payout ratio to 54.9%, against Medium-Term Plan targets of a 75% total payout ratio and a 55% dividend payout ratio. For FY2026, the company plans a dividend of ¥212 per share (1H ¥70, 2H ¥142; dividend payout ratio 54.8%) — an increase for the third consecutive year — and announced a ¥10.5 billion share repurchase on May 15, 2026 (period: May 2026 – March 2027), for a total payout ratio target of 75.0%. From FY2006 to FY2025 the company repurchased ¥145.5 billion of shares (52.28 million shares, 27.9% of shares issued) in total and cancelled all repurchased shares.

Medium-Term Plan

Under the Medium-Term Plan Vista2027 Stage II (FY2025–2027, announced in May 2025), the FY2027 plan calls for sales of ¥293.0 billion, operating profit of ¥65.0 billion and net income of ¥48.0 billion, with financial targets of an OP margin of 20% or more, ROE of 18% or more, a dividend payout ratio of 55% or more, and a total payout ratio of 75% or more. The company positions ROE as its most important financial indicator; the FY2025 actual of 20.3% compares with the plan target of 18% or more. In Performance Materials, the company expects its Semis Materials sales growth rate to be +20% or more (2024–2030 CAGR), exceeding the market growth rate of +10%, with sales expected to grow significantly in leading-edge and advanced generations, particularly for AI server applications. In Agrochemicals, expected peak sales of new products total ¥41.0 billion, including RYZONIC (launch planned for 2027, expected peak sales ¥15.0 billion, revised upward from ¥10.0 billion in January 2026).

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