Nichiha (7943): FY2025 Results Summary — Sales Decline but Operating Profit Rises 34.6% Amid U.S. Business Exit Charge

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

Note: Nichiha does not publish an English-language results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recent completed fiscal year as FY2025, while the company’s own materials label the period as the fiscal year ended March 31, 2026 (2026年3月期). Nichiha reported consolidated net sales of 143,740 million yen for the fiscal year ended March 31, 2026, down 3.2% year on year, while operating profit rose to 9,355 million yen (up 34.6%) and ordinary profit rose to 10,246 million yen (up 41.3%). Profit attributable to owners of parent declined to 2,486 million yen (down 8.1%), after the company recorded an extraordinary loss of 5,401 million yen in connection with its withdrawal from the general-purpose exterior siding business for the U.S. housing market.

Consolidated Results (FY Ended March 2026 Actual)

Consolidated results for the fiscal year ended March 31, 2026 showed net sales declining to 143,740 million yen (down 3.2% year on year), while operating profit rose to 9,355 million yen (up 34.6%; operating margin 6.5%) and ordinary profit rose to 10,246 million yen (up 41.3%). Profit attributable to owners of parent declined to 2,486 million yen (down 8.1%), primarily due to an extraordinary loss of 5,401 million yen recorded in connection with the withdrawal from the general-purpose exterior siding business for the U.S. housing market.

Item	FY Ended Mar 2026	FY Ended Mar 2025	Change (YoY)
Net sales	¥143,740 million	¥148,478 million	-3.2% (-¥4,738 million)
Operating profit	¥9,355 million (margin 6.5%)	¥6,951 million (margin 4.7%)	+34.6% (+¥2,403 million)
Ordinary profit	¥10,246 million	¥7,254 million	+41.3% (+¥2,992 million)
Profit attributable to owners of parent	¥2,486 million	¥2,706 million	-8.1% (-¥220 million)

Results by Country/Region

Domestic sales were 115,269 million yen (119,494 million yen in the prior year), while domestic operating profit rose to 6,560 million yen (4,535 million yen in the prior year, up 44.7%). In the United States, sales were 29,584 million yen (197.7 million US dollars; 211.0 million US dollars in the prior year) and operating profit was 1,875 million yen (12.5 million US dollars; 13.2 million US dollars in the prior year). Within the U.S. business, the general-purpose exterior siding business for the housing market posted sales of 46.2 million US dollars (69.0 million US dollars in the prior year) and an operating loss of 9.4 million US dollars (an operating loss of 4.2 million US dollars in the prior year), while the commercial (premium) business grew, with sales of 151.4 million US dollars (142.0 million US dollars in the prior year) and operating profit of 21.9 million US dollars (17.4 million US dollars in the prior year, up 25.7%). In China, sales were 3,930 million yen (4,068 million yen in the prior year) and operating profit was 342 million yen (154 million yen in the prior year).

Country/Region	Metric	FY Ended Mar 2026	FY Ended Mar 2025
Domestic	Net sales	¥115,269 million	¥119,494 million
Domestic	Operating profit	¥6,560 million	¥4,535 million
United States	Net sales	¥29,584 million (US$197.7 million)	¥32,015 million (US$211.0 million)
United States	Operating profit	¥1,875 million (US$12.5 million)	¥2,007 million (US$13.2 million)
China	Net sales	¥3,930 million	¥4,068 million
China	Operating profit	¥342 million	¥154 million
Consolidated Total	Net sales	¥143,740 million	¥148,478 million
Consolidated Total	Operating profit	¥9,355 million	¥6,951 million

Full-Year Forecast (FY Ending March 2027)

For the fiscal year ending March 31, 2027, Nichiha forecasts consolidated net sales of 141,000 million yen (down 1.9% year on year), operating profit of 9,600 million yen (up 2.6%; operating margin 6.8%), ordinary profit of 9,800 million yen (down 4.4%), and profit attributable to owners of parent of 8,000 million yen (up 221.7%). By country/region, the company forecasts operating profit of 5,180 million yen for the domestic business (down 21.1% year on year), 3,690 million yen for the United States business (up 96.7%), and 320 million yen for the China business (down 6.4%). As market assumptions, the company expects new housing starts to decline 0.3% year on year and industry-wide siding sales volume of 23,400 thousand tsubo (down 4.5% year on year). The yen conversion rates assumed for overseas subsidiaries are 155.00 yen per US dollar (149.62 yen in the prior year) and 22.00 yen per yuan (20.81 yen in the prior year). Regarding the impact of rising crude oil prices amid heightened tensions in the Middle East (assuming a crude oil price of 90 dollars per barrel), the forecast incorporates approximately 1.0 billion yen in higher energy costs, but does not incorporate the potential impact of higher prices for oil-derived housing materials or reduced housing demand, which the company says cannot be reasonably estimated at this time.

Item	FY2027 Forecast	FY Ended Mar 2026 (Actual)	Change (YoY)
Net sales	¥141,000 million	¥143,740 million	-1.9% (-¥2,740 million)
Operating profit	¥9,600 million (margin 6.8%)	¥9,355 million (margin 6.5%)	+2.6% (+¥244 million)
Ordinary profit	¥9,800 million	¥10,246 million	-4.4% (-¥446 million)
Profit attributable to owners of parent	¥8,000 million	¥2,486 million	+221.7% (+¥5,513 million)

Shareholder Returns

Regarding dividends, Nichiha plans an annual dividend per share of 114 yen for the fiscal year ending March 31, 2026 (scheduled; interim 57.00 yen, year-end 57.00 yen), and an unchanged annual dividend of 114 yen for the fiscal year ending March 31, 2027 (forecast; interim 57.00 yen, year-end 57.00 yen), with a payout ratio of 47.3%. Annual dividends per share have progressed as follows: 60 yen for the fiscal year ended March 2020, 73 yen for March 2021, 97 yen for March 2022, 97 yen for March 2023, and 114 yen for March 2024.

Fiscal Year	Interim Dividend	Year-End Dividend	Annual Dividend
FY Ended Mar 2020	¥30.00	¥30.00	¥60
FY Ended Mar 2021	¥27.50	¥45.50	¥73
FY Ended Mar 2022	¥42.00	¥55.00	¥97
FY Ended Mar 2023	¥48.50	¥48.50	¥97
FY Ended Mar 2024	¥57.00	¥57.00	¥114
FY Ended Mar 2025	¥57.00	¥57.00	¥114
FY Ending Mar 2026 (Scheduled)	¥57.00	¥57.00	¥114
FY Ending Mar 2027 (Forecast)	¥57.00	¥57.00	¥114 (payout ratio 47.3%)

Other Topics

Capital expenditures for the fiscal year ending March 31, 2027 are planned at 6,775 million yen (3,860 million yen in the prior year), including 2,029 million yen for a new logistics warehouse, with depreciation expected at 5,631 million yen (5,320 million yen in the prior year). This material is a preliminary version; additional information including the medium-term management plan was scheduled to be released on May 28, 2026.

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.