Nippon Gas (8174): FY2025 Results Summary — Operating Income +15% YoY and ROE Lifted to 22%

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

Note: NIPPON GAS CO., LTD. (NICIGAS) labels the fiscal year ended March 31, 2026 as “FYE 03/26,” and this article keeps the company’s labels in all text and tables while classifying the year as FY2025 under this site’s convention. In FYE 03/26 the company posted gross profit of 768 (¥100M) and operating income of 213 (¥100M), which it describes as an increase of +15% YoY, and net income of 148 (¥100M). ROE improved to 22% and EPS rose by +31% YoY from ¥104.5 to ¥136.7. For FYE 03/27 NICIGAS targets operating income of ¥20.0B, factoring in a -¥2.0B impact from rising raw material prices due to escalating tensions in the Mideast.

Consolidated Results (Full-Year Actual)

The company reports its results in units of ¥100M. Gross profit rose to 768 from 745, an increase of +23, while SG&A expenses declined to 555 from 560, a change of (5). Operating income was 213, up +28, and the presentation states operating income increased significantly (+15% YoY). Net income was 148 against 115 in the prior year, and shareholder return, based on board resolution, was 180 against 162. The company notes that net income achieved a record-high for five consecutive periods.

Item (¥100M unless noted)	FYE 03/25	FYE 03/26	Change
Gross Profit (GP)	745	768	+23
SG&A Expenses	560	555	(5)
Operating Income (OI)	185	213	+28
Net Income	115	148	—
Shareholder Return (based on board resolution)	162	180	—
EPS	¥104.5	¥136.7	+31% YoY
ROE	17%	22%	—

Against the company’s own plan for FYE 03/26, gross profit came in at 768 versus a plan of 750 (+18), SG&A expenses at 555 versus 550 (+5), operating income at 213 versus 200 (+13), and net income at 148 versus 140 (+8). EPS was ¥136.7 versus a planned ¥129.6 (+¥7.1), and ROE was 22% against a planned 22% (0%). The company describes operating income as ¥21.3B, +7% versus plan. By segment against plan, LP Gas contributed +9 as gas sales volume and margin exceeded estimates and equipment sales grew; City Gas +5 as raw material prices increased at a moderate pace compared with the company’s estimates and equipment sales grew; and Electricity +4 as margin improved with procurement costs below plan and sales volume grew.

Item (¥100M unless noted)	FYE 03/26 (P)	FYE 03/26 (A)	+/-
Gross Profit (GP)	750	768	+18
SG&A Expenses	550	555	+5
Operating Income	200	213	+13
Net Income	140	148	+8
EPS	¥129.6	¥136.7	+¥7.1
ROE	22%	22%	0%

Segment Results

The company discloses gross profit by segment after reclassifying prior-period figures into the new segment structure, under which the Platform (PF) business is segmented separately from FYE 03/27. LP Gas gross profit was 486 (+3 YoY, +1% YoY): residential gas sales volume grew on customer growth with margin flat YoY, C&I gas was -4 as margin shrunk affected by raw material price, and Equipment, etc. was +4 on increased sales of energy-saving gas appliances such as hybrid water heaters. LP Gas total customers reached 1,051 thousand (+21), including M&A of 3.2K customers across 34 companies, and the residential-plus-C&I margin was ¥158/kg versus ¥159/kg.

City Gas gross profit was 200 (+4 YoY, +2% YoY), with Gas +2 and Equipment, etc. +2, and total customers of 609 thousand (+19), which the company states was net customer growth turning positive for the first time since FYE 03/22. Electricity gross profit was 66 (+14 YoY, +27% YoY), with margin at ¥3.8/kWh versus ¥3.3/kWh, sales volume of 1,723 GWh (+136) and total customers of 404 thousand (+23). Platform gross profit was 16 (+2 YoY, +14% YoY), with approximately 60 companies using the Platform as at 31st Mar 2026.

Segment	Metric	FYE 03/25	FYE 03/26	Change
LP Gas (incl. Equipment, etc.)	Gross Profit (¥100M)	483	486	+3
City Gas (incl. Equipment, etc.)	Gross Profit (¥100M)	196	200	+4
Electricity	Gross Profit (¥100M)	52	66	+14
Platform (PF)	Gross Profit (¥100M)	14	16	+2
LP Gas	# of total customers (‘000)	1,030	1,051	+21
City Gas	# of total customers (‘000)	590	609	+19
Electricity	# of total customers (‘000)	381	404	+23
LP Gas	Sales volume (‘000t, Residential/C&I)	178/109	181/106	+3/(3)
City Gas	Sales volume (‘000t, Residential and C&I total)	344	338	—
Electricity	Sales volume (GWh)	1,587	1,723	+136

FYE 03/27 Forecast

For FYE 03/27 NICIGAS plans gross profit of 755 (13) and operating income of 200 (13), with SG&A expenses flat at 555. Net income is planned at 140 (8) and EPS at ¥132.3 (-¥4.4). The company separately shows figures excluding the impact of the Mideast: gross profit 775, operating income 220, net income 154 and EPS ¥145.5. The -13 gross profit change versus FYE 03/26 is presented as organic growth of +7 combined with an impact of the Mideast of -20. By segment, the FYE 03/27 gross profit plan is LP Gas 495, City Gas 191, Electricity 52 and PF 17. Planning assumptions include an LP Gas residential margin of ¥232/kg, a CP average price of US$720/t, an average exchange rate of ¥160/US$, an electricity margin of ¥2.9/kWh, an LNG CIF average price of JPY 141 thousand/t and an average temperature of 17.0°C.

Item (¥100M unless noted)	FYE 03/26 (A)	FYE 03/27 (P)	+/-	Excluding the impact
Gross Profit	768	755	(13)	775
SG&A Expenses	555	555	0	555
Operating Income	213	200	(13)	220
Net Income	148	140	(8)	154
EPS	¥136.7	¥132.3	-¥4.4	¥145.5

Shareholder Returns

NICIGAS states it is enhancing shareholder return with a focus on dividends, under a policy of not holding unnecessary shareholders’ equity. Dividend per share was ¥103.0 in FYE 03/26, following ¥92.5 in FYE 03/25 and ¥75.0 in FYE 03/24, and the company plans ¥110.0 for FYE 03/27 and to increase it gradually thereafter. On a board-resolution basis the dividend amount was 113 (¥100M) in FYE 03/26 and is planned at 117 (¥100M) for FYE 03/27. Share buybacks were ¥5.9B, ¥6.0B and ¥6.7B in FYE 03/24, FYE 03/25 and FYE 03/26 respectively, including share buyback for capital optimization; from FYE 03/27 the company says it will execute buybacks flexibly under a policy aiming to maintain a 40% equity ratio. Cumulative dividends over FYE 03/24 to FYE 03/26 totalled ¥30.0B, and the company plans over ¥36.0B over FYE 03/27 to FYE 03/29.

Item	FYE 03/24	FYE 03/25	FYE 03/26	FYE 03/27 (P)
Dividend per share	¥75.0	¥92.5	¥103.0	¥110.0
Dividend, based on board resolution (¥100M)	85	102	113	117
Share buyback	¥5.9B	¥6.0B	¥6.7B	Flexibly executes policy aiming to maintain a 40% equity ratio
Net Income (¥100M)	108	115	148	140

Three-Year Plan (FYE 03/27 – FYE 03/29)

Alongside the results, NICIGAS disclosed a new Three-Year Plan covering FYE 03/27 to FYE 03/29. Against FYE 03/26 actuals of operating income 21.3 billion yen, net income 14.8 billion yen, EPS 136.7 yen, ROE 22%, ROIC 13% and an equity ratio of 41%, the FYE 03/29 plan targets operating income of 25.0 billion yen, net income of 17.5 billion yen, EPS of over 165 yen, ROE of around 22%, ROIC of around 13% and an equity ratio of around 40%. The company positions organic growth of +3.7 billion yen in operating income as the core of the plan, with expansion via M&A as upside. On the profit plan, gross profit is targeted at 820 (¥100M) in FYE 03/29 versus 768 in FYE 03/26, with SG&A expenses of 570 and operating income of 250. For cash allocation over the three years, the company shows CF from operating activities of ¥78.0B, renewal investments of ¥15.0B, growth investments, and dividends of over ¥36.0B.

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.