Nippon Electric Glass (5214): FY2025 Results Summary — Operating Profit Up 457.6% on Display Price Revisions

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Nippon Electric Glass Co., Ltd. reported net sales of 311.4 billion yen for FY2025 (the fiscal year ended December 31, 2025), up 4.1% from the previous year, while operating profit rose 457.6% to 34.1 billion yen and the operating margin recovered from 2.0% to 11.0%. Profit attributable to owners of parent reached 29.6 billion yen, up 144.9%, and earnings per share rose to ¥382.33 from ¥141.67. The company attributes the profit improvement mainly to sales price revisions in the displays business, an increase in sales of the electronics business, improved productivity, a decrease in depreciation and amortization, and lower logistics costs and raw material and fuel costs. For FY2026 the company forecasts net sales of 320.0 billion yen with operating profit of 33.0 billion yen, and plans an annual dividend of ¥160 per share.

Consolidated Results (Full-Year Actual)

Figures are presented in billions of JPY as disclosed in the presentation material, unless otherwise noted. Non-operating income declined 42.7% to 3.6 billion yen, which the company explains as primarily a decrease in foreign exchange gains related to the evaluation of receivables and payables associated with overseas subsidiaries’ borrowings (FY2024: ¥4.5 billion; FY2025: ¥1.1 billion). Ordinary profit rose 203.9% to 37.7 billion yen. Extraordinary income fell 63.1% to 4.1 billion yen: in FY2024 impairment losses were recorded in Displays (¥12.6 billion) and Composites (¥11.1 billion), while FY2025 reflected a decrease in gain on sale of non-current assets (-¥20.5 billion), a decrease in gain on sale of investment securities (-¥4.9 billion), and recognition of business restructuring expenses (-¥3.9 billion).

Item	FY2025	FY2024	Change
Net sales	311.4	299.2	4.1%
Operating profit	34.1	6.1	457.6%
Operating margin	11.0%	2.0%	–
Non-operating income	3.6	6.2	(42.7%)
Ordinary profit	37.7	12.4	203.9%
Extraordinary income	4.1	11.3	(63.1%)
Profit attributable to owners of parent	29.6	12.0	144.9%
Earnings per share (JPY)	¥382.33	¥141.67	169.9%
Dividends per share (JPY)	¥150	¥130	‐

On the consolidated financial data table, ROE improved to 6.1% in FY2025 from 2.5% in FY2024, and the equity ratio was 70.2% versus 69.6%. Capital expenditures were 34.3 billion yen and depreciation and amortization was 24.2 billion yen, while research and development was 8.8 billion yen. Cash flows from operating activities were 52.0 billion yen and free cash flow was 41.6 billion yen. Interest-bearing debt fell to 99.3 billion yen from 113.2 billion yen, total assets were 701.4 billion yen versus 695.1 billion yen, and total net assets were 496.1 billion yen versus 487.5 billion yen.

Segment Results

Nippon Electric Glass reports two businesses: Electronics & Information Technology (Displays approx. 80%, Electronics approx. 20%) and Performance Materials (Composites just under 80%, Others over 20%). In Electronics & Information Technology, demand for display glass substrates continued steadily throughout the year with sales prices revised, non-display products such as ultra-thin glass expanded, and demand remained strong particularly for semiconductor and data center products, so sales exceeded the previous year. In Performance Materials, Composites sales remained sluggish amid persistent fierce competition and the UK subsidiary ceased operations in June as part of business restructuring, so sales fell below the previous period; sales in Medical Care, Heat-Resistance and Buildings were on par with the previous period. By quarter in FY2025, Electronics & Information Technology sales were 40.6, 43.0, 43.5 and 46.5 billion yen from 1Q to 4Q, while Performance Materials sales were 34.2, 35.8, 34.8 and 32.7 billion yen.

Segment / Region	Metric	FY2025	FY2024
Electronics & Information Technology	Net sales	173.7 (56%)	157.5 (53%)
Performance Materials	Net sales	137.6 (44%)	141.6 (47%)
Asia	Net sales	182.6 (59%)	169.4 (57%)
EU, US, etc	Net sales	86.6 (28%)	89.4 (30%)
Japan	Net sales	42.1 (13%)	40.3 (13%)

FY2026 Forecast

For FY2026 the company forecasts net sales of 320.0 billion yen (up 2.8%), operating profit of 33.0 billion yen (down 3.3%) with an operating margin of 10.3%, ordinary profit of 33.0 billion yen (down 12.6%), and profit attributable to owners of parent of 23.0 billion yen (down 25.7%). The forecast assumes 1 USD = 150 JPY and 1 EUR = 180 JPY, and the company notes that the global economy is expected to continue facing uncertainty due to factors such as U.S. and China tariff policies and the situation in the Middle East. For Displays, demand for display glass is expected to remain robust, matching market growth, with prices projected to remain stable, while switching to all-electric melting furnaces and performing regular maintenance are expected to incur certain costs. CAPEX is planned at approximately ¥45 billion in FY2026 and depreciation at approximately ¥26 billion.

Item	FY2026 2Q (accum)	FY2026 Full year	FY2025 (Actual)	Change
Net sales	150.0	320.0	311.4	2.8%
Operating profit	11.0	33.0	34.1	(3.3%)
Operating margin	7.3%	10.3%	11.0%	–
Ordinary profit	11.0	33.0	37.7	(12.6%)
Profit attributable to owners of parent	8.0	23.0	29.6	(25.7%)
Dividend forecast (JPY/share)	80	160	150	–

Shareholder Returns

The company states that its dividend has seen no reduction for over 20 years with continuous increases, and that FY2026 is planned at ¥160 per share. The FY2025 annual dividend was ¥150 per share (interim ¥70, year-end ¥80), and the dividend on equity ratio (DOE) was 2.7% in FY2025 against a target of 3.0% at FY2028. Approximately ¥20 billion of share repurchases was implemented in FY2025, and ¥20 billion is planned in FY2026 (announced February 6, 2026), with a further ¥20 billion scheduled within EGP2028. Among its efforts to increase corporate value and PBR, the company cites share repurchases of a planned total of ¥100 billion and continuous dividend growth with a target DOE of 3%.

Medium-Term Business Plan EGP2028

Under the medium-term business plan EGP2028, positioned as STRONG GROWTH – fortifying the revenue base of existing businesses and aggressively allocating resources to growth areas – the FY2028 targets are net sales of 400 billion yen, operating profit of 50 billion yen, an operating margin of 12.5% and ROE of 8%, with an equity level of approximately 400 billion yen. The plan is organized into business strategies (reinforcement of existing businesses, expansion of strategic businesses, procurement risks management), financial strategies (reduction of cross-shareholdings, asset reduction, balance sheet management and enhancement of shareholder returns) and sustainability strategies (promotion of carbon neutrality, human resource strategy, supply chain management). On cross-shareholdings, the number of listed stocks held fell to 17 at December 2025 from 19 at December 2024, and cross-shareholdings as a percentage of consolidated net assets was 7.3% versus 7.6%; all shares of two stocks and some of one stock were sold in FY2025.

FY2028 Target	Value
Net sales	400 billion yen
Operating profit	50 billion yen
Operating margin	12.5%
ROE	8%
Equity level	Approx. 400 billion yen

Topics

The company highlights several growth initiatives. In ultra-thin glass it is actively developing new products utilizing overflow technology cultivated in the display field, including ultra-thin glass for perovskite solar cells (under development), ultra-thin cover glass for satellite solar panels, and Dinorex UTG cover glass, with an adoption example of the Xiaomi MIX Flip 2. In semiconductor-related products it released a glass thin film for next-generation memories in September 2025, jointly developed with Tohoku University Graduate School of Engineering, and D2 Fiber low dielectric glass fiber in December 2025, with mass production scheduled to begin in Q4 2026. It has also developed a fluorine-free water- and oil-repellent coating, successfully developed in 2024, for which mass production and sales have begun in partial sectors. In the engineering business the company is aiming for annual sales of 5 billion yen by FY2028 with its NOFC oxy-fuel combustion technology, NEMT electric melting technology and NFCS combustion control system.

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