Nippon Sharyo (7102): FY2025 Results Summary — Record Profits Exceed 10 Billion Yen for the First Time

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

Nippon Sharyo, Ltd. (7102) released its Financial Results Briefing Materials for the Fiscal Year Ended March 2026 (covering April 2025 to March 2026) on April 24, 2026. Net sales increased primarily in the railway rolling stock business, rising for the second consecutive period, while total profit increased for the third consecutive period. Operating profit, ordinary profit, and net profit attributable to owners of the parent all reached record highs, with each of these profit figures exceeding 10 billion yen for the first time since the company’s founding.

Note: The company’s materials label the period as “FYE March 2026” (the fiscal year ended March 2026); this site classifies it as FY2025, and the tables below follow the labels used in the company’s materials.

Consolidated Results (Full-Year Actual)

For the fiscal year ended March 2026, net sales were 99.9 billion yen, up 3.6 billion yen (+3.8%) year on year. Operating profit was 11.6 billion yen (+67.5%), ordinary profit was 11.9 billion yen (+64.2%), and profit attributable to owners of parent was 11.6 billion yen (+81.8%). The ordinary profit margin improved from 7.6% to 12.0%. According to the materials, profit increased in the railway rolling stock business, the transportation equipment and steel structure business, and the engineering business, with additional contributions from initiatives focused on quality enhancement, cost reduction, and improvements in operational efficiency.

Item (Billions of yen)	FYE March 2025	FYE March 2026	Change	Year-on-year percentage change
Net sales	96.3	99.9	+3.6	+3.8%
Operating profit	6.9	11.6	+4.6	+67.5%
Ordinary Profit	7.2	11.9	+4.6	+64.2%
(Ordinary profit margin)	7.6%	12.0%	+4.4%	－
Profit attributable to owners of parent	6.4	11.6	+5.2	+81.8%

Segment Results

By segment, the railway rolling stock business posted net sales of 48.5 billion yen (up 3.8 billion yen) and operating profit of 4.5 billion yen (up 1.8 billion yen). The construction equipment business recorded net sales of 22.0 billion yen (down 0.7 billion yen) and operating profit of 3.9 billion yen (down 0.3 billion yen). The transportation equipment and steel structure business posted net sales of 21.8 billion yen (down 0.3 billion yen) and operating profit of 3.1 billion yen (up 1.3 billion yen). The engineering business recorded net sales of 7.4 billion yen (up 0.9 billion yen) and operating profit of 1.1 billion yen, an improvement of 1.9 billion yen from an operating loss of 0.8 billion yen in the previous fiscal year.

Segment (Billions of yen)	Net sales FYE March 2025	Net sales FYE March 2026	Change	Operating profit/loss FYE March 2025	Operating profit/loss FYE March 2026	Change
Railway rolling stock	44.7	48.5	+3.8	2.7	4.5	+1.8
Construction equipment	22.8	22.0	(0.7)	4.2	3.9	(0.3)
Transportation equipment and Steel structure	22.1	21.8	(0.3)	1.8	3.1	+1.3
Engineering	6.5	7.4	+0.9	(0.8)	1.1	+1.9
Other/Adjustments	0	0	+0	(1.0)	(1.1)	(0.1)
Total	96.3	99.9	+3.6	6.9	11.6	+4.6

The materials note that “Adjustments” include general and administrative expenses, elimination of inter-segment transactions, etc., which are not attributable to individual segments.

Forecast for the Fiscal Year Ending March 2027

For the fiscal year ending March 2027, the company forecasts net sales of 107.0 billion yen, up 7.0 billion yen (+7.0%) from the fiscal year ended March 2026, as the solid order environment seen in the fiscal year ended March 2026 is expected to continue. On the profit side, the company states that, given the ongoing strengthening of its business foundation, it initially expected to secure profits at a level comparable to those of the fiscal year ended March 2026; however, due to the rising geopolitical tensions in the Middle East and the difficulty of accurately assessing their future impact, profits are now expected to decrease. Operating profit is forecast at 8.8 billion yen (down 24.2%), ordinary profit at 9.3 billion yen (down 22.4%), and profit attributable to owners of parent at 7.5 billion yen (down 35.7%).

Item (Billions of yen)	FYE March 2026 (Results)	FYE March 2027 (Forecast)	Change	Year-on-year percentage change
Net sales	99.9	107.0	+7.0	+7.0%
Operating profit	11.6	8.8	(2.8)	(24.2%)
Ordinary Profit	11.9	9.3	(2.6)	(22.4%)
(Ordinary profit margin)	12.0%	8.7%	(3.3%)	–
Profit attributable to owners of parent	11.6	7.5	(4.1)	(35.7%)

Shareholder Returns

The company will pay year-end dividends of 25 yen per share for the fiscal year ended March 2026, an increase of 5 yen from the dividend forecast of 20 yen per share announced at the beginning of the fiscal year. Annual dividends for the fiscal year ended March 2026 will total 45 yen per share.

For the fiscal year ending March 2027, the company forecasts that interim and year-end dividends will each be 25 yen per share, for annual dividends totaling 50 yen per share.

Item	FYE March 2026	FYE March 2027 (Forecast)
Year-end dividend (yen per share)	25	25
Annual dividends (yen per share)	45	50

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.