Nipro Corporation (8086): FY2025 Results Summary — Operating Profit Up 41.5% on Overseas Dialyzer Growth

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

Nipro Corporation released its IR Materials for the fiscal year ended March 31, 2026 on May 12, 2026. The company labels this year FY2025, the same label japan-equity.com uses. Net sales rose 2.5% year on year and operating profit rose 41.5%, with operating income reaching the initial forecast of 37.0 billion yen, while ordinary profit rose 82.3% and profit attributable to owners of parent rose 164.1%. For FY2026 the company forecasts net sales of 7,000.0 and operating profit of 400.0, on the 100 million yen scale used throughout the materials.

Consolidated Results (Full-Year Actual)

Net sales were 6,605.3 against 6,445.8 in FY2024, gross profit was 2,082.8 (up 8.5%), SG&A expenses were 1,706.5 (up 3.2%) and operating profit was 376.2 (up 41.5%), all on the 100 million yen scale. The operating profit ratio improved to 5.7% from 4.1%. Against the company’s own FY2025 forecast, net sales came in 2.4% below expectations while operating profit reached 370.0 as forecast.

Item (100 million yen)	FY2024	FY2025	Change	Change %	FY2025 Forecast
Net sales	6,445.8	6,605.3	+159.5	+2.5%	6,770.0
Cost of sales	4,526.8	4,522.5	-4.3	-0.1%	4,710.0
Gross profit	1,918.9	2,082.8	+163.8	+8.5%	2,060.0
SG&A expenses	1,652.9	1,706.5	+53.5	+3.2%	1,690.0
Operating profit	265.9	376.2	+110.2	+41.5%	370.0
Ordinary profit	108.1	197.2	+89.0	+82.3%	242.0
Profit attributable to owners of parent	51.1	135.0	+83.9	+164.1%	129.5

The company states that net sales increased on strong dialyzer sales in the Americas, Europe and China in the overseas medical-related segment, solid sales of injection needles and vascular-related products in the domestic medical segment, and increased sales of injectable drugs in the pharmaceutical segment. Gross profit increased by 16.38 billion yen year on year, driven by price pass-through measures, product portfolio streamlining and a decrease in raw material costs. Operating profit increased by 11.02 billion yen, as higher net sales and restraint on the increase in cost of sales more than offset higher SG&A expenses, which rose on higher labor costs both in Japan and overseas and higher transportation expenses in the Americas and Europe.

Ordinary profit increased by 8.9 billion yen despite higher interest expenses, primarily on higher operating profit and a decrease in foreign exchange losses. Profit attributable to owners of parent increased by 8.39 billion yen, as the company recorded a gain of 5.11 billion yen from the step acquisition of G2/Spryte and a gain on the sale of fixed assets of 4.14 billion yen. The shortfall versus the full-year forecast is attributed to a profit-oriented management policy that avoids excessive volume expansion, together with temporary factors such as shipment restrictions on certain domestic dialyzer products and a slowdown in demand resulting from changes in the Indonesian government’s policies. Within SG&A, personnel expenses rose 5.49 billion yen year on year and overseas freight charges in the Americas and Europe rose 1.12 billion yen. Capital expenditure was 640.7 against 740.5 the previous year and R&D expenses were 268.1 against 278.6, again on the 100 million yen scale.

Segment Results

Sales rose in the Medical-Related and Pharmaceutical-Related segments and fell in PharmaPackaging. Medical-Related segment profit increased 5.7 billion yen year on year, as higher depreciation and labor costs were offset by higher sales and lower raw material and electricity costs. Pharmaceutical-Related segment profit increased 1.47 billion yen as profitability improved through price increases reflecting higher raw material and labor costs and through product portfolio streamlining. PharmaPackaging segment profit decreased 1.31 billion yen due to a decline in sales.

Segment (100 million yen)	Net sales FY2024	Net sales FY2025	Net sales change %	Segment profit FY2024	Segment profit FY2025	Segment profit change %
Medical-Related	5,050.7	5,236.1	+3.7%	466.3	523.3	+12.2%
Pharmaceutical-Related	791.2	811.0	+2.5%	106.2	120.9	+13.8%
PharmaPackaging	592.6	546.8	-7.7%	-2.7	-15.8	–

Within Medical-Related, domestic business sales rose 1.7% to 2,316.1 and overseas business sales rose 5.3% to 2,919.9. In Japan, medical device sales rose 3.6% to 1,200.0 while pharmaceuticals (own brands) edged down 0.3% to 1,116.1. The company attributes the domestic device gain to injection needles, up 2,140 million yen on factors such as price pass-through, and vascular products, up 1,670 million yen on successful expansion of indications and market growth for drug-coated balloons, while dialyzers fell 340 million yen as the cumulative impact of the lifted shipment limits on Fineflux continued. In own-brand pharmaceuticals, injection drugs and infusion products rose 5,170 million yen on strong sales of BS products, anticancer drugs and antibiotics, while oral drugs fell 2,440 million yen and external preparations and patches fell 2,050 million yen.

Overseas, NIPRO brand sales rose 5.6% to 2,580.8 and B2B (other brands) rose 2.8% to 339.1. By region, the Americas rose 5.0% to 1,132.9, Europe rose 13.5% to 596.0 and China rose 6.8% to 364.7, while Asia declined 2.1% to 487.0. The Americas gain of 5,400 million yen is attributed to large contracts in North America and tender activities in Mexico, and the Europe gain of 7,100 million yen to stronger sales of ATA and HX dialyzers, dialysis machines in Western Europe and Africa, and vascular products. In Asia, sales fell 1,030 million yen as the shift to single-use products in Indonesia proceeded at a slowed pace and accounts-receivable collection was prioritized in Pakistan; China rose 2,320 million yen on the official start of centralized procurement and growth at dialysis centers.

In the Pharmaceutical-Related segment, generic drugs fell 2.7% to 326.4 while brand-name and long-listed drugs rose 6.4% to 356.2, OTC drugs and active ingredients rose 3.8% to 49.5 and JMI Pharma rose 7.6% to 78.8. Brand-name and long-listed drugs gained 2,150 million yen and generic drugs lost 900 million yen, with injectable drugs strong in both categories. In PharmaPackaging, Japan sales rose 6.7% to 152.5 on glass tubing, dental-related products and medical injection sets, up 950 million yen, while overseas sales fell 12.3% to 394.2: Europe fell 7.8% to 258.8, down 2,200 million yen as sterilized syringe sales were hit by new entrants, and the United States fell 21.3% to 102.0, down 2,760 million yen as vial sales declined on worldwide inventory adjustments for glass containers. The company notes both regions are currently on an upward trend.

FY2026 Forecast

For FY2026 the company forecasts net sales of 7,000.0 (up 6.0%), gross profit of 2,350.0 (up 12.8%), operating profit of 400.0 (up 6.3%), ordinary profit of 274.0 and profit attributable to owners of parent of 150.0 (up 11.1%), on the 100 million yen scale. Assumed exchange rates are 143.0 yen to the US dollar against an FY2025 average of 149.7, 169.0 yen to the euro against 169.5, and 20.0 yen to the Chinese yuan against 20.8. The materials note that the FY2026 forecast is based on currently available information and does not incorporate the impact of the situation in the Middle East, as it cannot be reasonably estimated at this time.

Item (100 million yen)	FY2025 Actual	FY2026 Forecast	Change	Change %
Net sales	6,605.3	7,000.0	+394.7	+6.0%
Cost of sales	4,522.5	4,650.0	+127.5	+2.8%
Gross profit	2,082.8	2,350.0	+267.2	+12.8%
SG&A expenses	1,706.5	1,950.0	+243.5	+14.3%
Operating profit	376.2	400.0	+23.8	+6.3%
Ordinary profit	197.2	274.0	+76.8	38.9%
Profit attributable to owners of parent	135.0	150.0	+15.0	+11.1%

Segment (100 million yen)	Net sales FY2025	Net sales FY2026 Forecast	Net sales change %	Segment profit FY2025	Segment profit FY2026 Forecast	Segment profit change %
Medical	5,236.1	5,624.0	+7.4%	523.3	537.0	+2.6%
Pharmaceutical	811.0	787.0	-3.0%	120.9	108.0	-10.7%
PharmaPackaging	546.8	582.0	+6.4%	-15.8	13.0	–

In the Medical segment the company expects higher shipments of key products including HDF filters in Japan, large contract renewals with major dialysis providers and expansion of high-performance dialyzers in the Americas, tender wins in Europe, dialyzer expansion driven by the shift to single use in Asia, and centralized-procurement-driven dialyzer sales in China; segment profit is expected to rise despite R&D expenses and goodwill amortization associated with Gentuity, which will be newly consolidated from FY2026, and the start of amortization of sales rights for new AG products. Pharmaceutical segment profit is forecast to decline on factors such as increased depreciation associated with the operation of the Omi Plant, despite new brand-name contracts and price adjustments. PharmaPackaging is forecast to return to profitability on a gradual recovery in overseas markets, expanded sales of high-value-added vials in the United States, and manufacturing restructuring and cost-cutting measures in Europe and other regions. Planned capital expenditure is 490.2 against 640.7 in FY2025, and R&D expenses are planned at 284.0 against 268.1.

Shareholder Returns

The IR Materials do not contain a dividend or share buyback section. This cannot be confirmed from the materials.

Mid-Term Management Plan and Topics

Against the mid-term management plan, the company reports an FY2025 sales growth rate of 2.5% versus a mid-term goal of 6.0% or more, an operating profit margin of 5.7% versus a goal of 7.0%, ROE of 5.1% versus a goal of 10.0% or more, EPS of 82.8 yen versus a mid-term value of 180.0 yen or more, and a net debt/EBITDA multiple of 5.3 times versus a target of less than 4.0 times. Net debt (net interest-bearing debt) stood at 540.4 billion yen against a mid-term value of 487.0 billion yen.

Among the topics highlighted, Spryte has commenced first-in-human clinical trials for what the company describes as the world’s first cerebral intravascular (Neuro) OCT imaging system, aimed at improving decision-making and procedural accuracy in the treatment of cerebral aneurysms. The company also entered into a basic agreement to transfer the Saitama Plant No.2 and the Hanyu Plant, manufacturing facilities for poultices, patches and topical solutions operated by subsidiary Nipro Pharma, to MIKASA SEIYAKU CO., LTD., enabling Nipro Pharma to concentrate management resources on injectables and oral drugs. Separately, the company will change its reporting segment classifications from FY2026 to align with product lines, moving own-brand pharmaceuticals into the Medical Segment and regenerative medicine products and headquarters expenses into corporate adjustments; the materials state this change has no impact on the consolidated total.

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.