Soda Nikka Co., Ltd. (8158): FY2025 Results Summary — Record Net Income for a Fifth Straight Year

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

Note: Soda Nikka 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 recently completed fiscal year as FY2025, while the company’s materials and the source article label the period as the fiscal year ended March 31, 2026 (FY3/2026); the tables below retain that labeling, and the prior-year column is labeled ‘Previous Year’ because the source article does not state that year’s calendar digits. Soda Nikka reported consolidated results for FY3/2026 with net sales of 66,692 million yen (up 2.4% year on year), operating profit of 2,482 million yen (up 17.6%), ordinary profit of 2,934 million yen (up 18.4%), and profit attributable to owners of parent of 2,362 million yen (up 7.6%). Firm orders for inorganic chemicals from the electronics industry and government agencies, along with sales of packaging-related equipment, pushed up results, leading to increases in both revenue and profit. Profit attributable to owners of parent rose in line with the growth in operating profit, marking a record high for the fifth consecutive fiscal year, although extraordinary income decreased from the previous year.

Consolidated Results (FY3/2026 Actual)

Gross profit was 9,617 million yen (up 6.0% year on year), and selling, general and administrative expenses were 7,135 million yen (up 2.5%). Operating profit increased in line with the growth in revenue from business activities, and ordinary profit and profit attributable to owners of parent also increased.

Item	FY3/2026 (Actual)	Previous Year (Actual)	Change
Net sales (million yen)	66,692	65,146	+1,546 (+2.4%)
Gross profit (million yen)	9,617	9,071	+546 (+6.0%)
SG&A expenses (million yen)	7,135	6,961	+174 (+2.5%)
Operating profit (million yen)	2,482	2,109	+373 (+17.6%)
Ordinary profit (million yen)	2,934	2,477	+457 (+18.4%)
Profit attributable to owners of parent (million yen)	2,362	2,195	+167 (+7.6%)
Earnings per share (yen)	103.62	96.51	+7.11 (+7.4%)

Segment Results

All three segments — Chemicals, Functional Materials, and Other — posted higher sales. The Chemicals segment increased profit on growing demand for chemicals from the electronics industry and from municipalities. The Functional Materials segment increased profit on orders for packaging-related equipment and firm demand for food packaging film, although the equipment, construction and industrial materials business was somewhat sluggish and its profit margin fell below the previous year. The Other segment increased profit thanks to domestic consolidated subsidiaries — improved plant utilization at Nippon Housou Co., Ltd.’s new plant and firm sewing-accessories business at Morris Co., Ltd. — while overseas consolidated subsidiaries faced a changing competitive environment due to U.S. tariff policy, which made progress on new business difficult.

Segment	Metric	FY3/2026 (Actual)	Previous Year (Actual)
Chemicals	Net sales (million yen)	44,319	43,402
Chemicals	Segment profit (million yen)	3,942	3,752
Chemicals	Profit margin	8.9%	8.6%
Functional Materials	Net sales (million yen)	14,490	13,714
Functional Materials	Segment profit (million yen)	831	807
Functional Materials	Profit margin	5.7%	5.9%
Other	Net sales (million yen)	7,882	8,029
Other	Segment profit (million yen)	244	157
Other	Profit margin	3.1%	2.0%

Full-Year Forecast

The consolidated forecast for FY3/2027 calls for net sales of 70,100 million yen (up 5.1% year on year), operating profit of 2,610 million yen (up 5.2%), ordinary profit of 3,110 million yen (up 6.0%), and profit attributable to owners of parent of 2,450 million yen (up 3.7%), with both revenue and profit expected to increase as measures under the medium-term management plan progress. While solid domestic demand is expected to support the economy, the company cites concerns over raw material shortages and higher crude oil prices stemming from tensions in the Middle East.

Item	FY3/2027 (Forecast)	FY3/2026 (Actual)
Net sales (million yen)	70,100	66,692
Operating profit (million yen)	2,610	2,482
Ordinary profit (million yen)	3,110	2,934
Profit attributable to owners of parent (million yen)	2,450	2,362
Earnings per share (yen)	107.34	103.62

Shareholder Returns

Under the medium-term management plan ‘Go Forward STAGE3,’ the company’s policy is to maintain a dividend payout ratio of 40% or more on an ongoing basis. The dividend for FY3/2026 was 44 yen per share annually (20 yen interim, 24 yen year-end), an increase from the initial forecast of 40 yen per share annually (20 yen interim, 20 yen year-end). For FY3/2027, the company forecasts an ordinary annual dividend of 44 yen per share (22 yen interim, 22 yen year-end).

Category	Interim Dividend (yen)	Year-End Dividend (yen)	Annual Total (yen)
FY3/2026 – Initial Forecast	20	20	40
FY3/2026 – Full-Year Actual	20	24	44
FY3/2027 – Forecast	22	22	44

Medium-Term Plan / Topics

In the third year of the medium-term management plan ‘Go Forward STAGE3,’ the company is pursuing management conscious of its cost of shareholders’ equity (6.58%). Return on equity (ROE) for FY3/2026 was 7.46%, above the cost of shareholders’ equity, while ROIC (4.98%) remained below WACC (5.70%). Price-to-book ratio (PBR) stood at 0.71x at the end of FY3/2026, down from 0.79x in the previous year on an increase in net assets. The STAGE3 final-year (FY3/2027) targets are consolidated profit attributable to owners of parent of 2.4 billion yen or more, ROE of 8% or more, and a dividend payout ratio of 40% or more; the profit target was revised upward from an initial 2.0 billion yen to 2.4 billion yen or more (announced May 8, 2025). Regarding cross-shareholdings, the company plans to reduce holdings by approximately 4.0 billion yen cumulatively over the STAGE3 period, and has sold 22 stock holdings worth 2,064 million yen to date.

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.