Nitto Kogyo (6651): FY2025 Results Summary — Record Net Sales, Operating Profit and Ordinary Profit on Price Revisions and Firm Demand

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

NITTO KOGYO CORPORATION (Stock code: 6651) reported results for Fiscal Year 2025 (April 1, 2025 – March 31, 2026). Net sales were 195,783 million yen (+6.0% year on year), operating profit was 15,446 million yen (+15.0%), and ordinary profit was 16,260 million yen (+20.3%), with net sales, operating profit and ordinary profit all at record highs. Profit attributable to owners of parent was 11,493 million yen (-5.0%), a decrease due to the elimination of extraordinary income (approx. 2.4 billion yen) recorded in the previous period. The revised full-year plan announced on February 9, 2026 was achieved in all profit categories.

Note: The company’s materials label the fiscal year ended March 31, 2026 as “Fiscal Year 2025” (shown on slides as “Full-year FY3/2026” and “2026/3”); labels in the tables below follow the materials.

Consolidated Results (Full-Year Actual)

Net sales increased mainly due to increased sales in the electrical and telecommunications infrastructure-related manufacturing, construction and service business and the distribution business, against the backdrop of solid demand for facilities investment and greater desire for IT investment by companies. Operating profit increased due to price revisions and improved project prices despite higher labor costs and rising parts costs. By factor, rising parts prices, etc. decreased operating profit by 0.7 billion yen in the year, the fourth price revision (effective from October 2025) boosted operating profit by 2.2 billion yen, and project prices boosted operating profit by 0.7 billion yen due to last-minute demand for high-voltage power receiving equipment.

Item (million yen)	2025/3 Actual	2026/3 Plan	2026/3 Actual	(YoY) Change	Vs. plan
Net sales	184,683	194,000	195,783	+6.0%	+0.9%
Operating profit	13,432	14,500	15,446	+15.0%	+6.5%
Ordinary profit	13,516	14,900	16,260	+20.3%	+9.1%
Profit attributable to owners of parent	12,097	10,000	11,493	-5.0%	+14.9%

Segment Results

All three business segments posted higher revenue and profits. Revenue and profits increased in the manufacturing, construction and service business due to companies’ solid demand for facilities investment and last-minute demand prior to the standard revision. Revenue and profits increased in the distribution business due to higher sales of related parts in line with companies’ greater desire for IT investment such as accelerating data center construction. Revenue and profits increased in the electronic parts business due to the acquisition of projects in the domestic automotive market and a strong demand in the air conditioning-related market.

By segment (million yen)	Metric	2025/3 Actual	2026/3 Actual	(YoY) Change
Manufacturing, construction and service business	Net sales	114,230	119,877	+4.9%
Distribution business	Net sales	56,046	59,956	+7.0%
Electronic parts business	Net sales	14,406	15,949	+10.7%
Total	Net sales	184,683	195,783	+6.0%
Manufacturing, construction and service business	Operating profit	10,253	11,306	+10.3%
Distribution business	Operating profit	2,089	2,628	+25.8%
Electronic parts business	Operating profit	959	1,379	+43.8%
Total	Operating profit	13,432	15,446	+15.0%

Within the manufacturing, construction and service business, net sales by division for the year were: distribution boards 72,981 million yen (+6.3%), enclosure 24,009 million yen (+2.9%), breakers/switches/parts/other 17,607 million yen (+4.2%), and construction/service 5,278 million yen (-0.5%). The distribution boards division posted increased revenue as a result of increased sales of high-voltage power receiving equipment due to solid demand for facilities investment and last-minute demand before the standard revision.

Full-Year Forecast (FY3/2027)

For the accounts period ending March 2027, net sales are expected to grow due to solid corporate demand for facilities investment and IT investment. Operating profit is expected to decline in the first half due to further increases in various costs, while the earnings contribution from the standard revision for high-voltage power receiving equipment is expected to remain limited; for the year, profit is expected to increase due to full-scale sales after the standard revision. By segment, full-year net sales forecasts are 131,000 million yen (YoY +9.3%) for the manufacturing, construction and service business, 63,000 million yen (YoY +5.1%) for the distribution business, and 16,000 million yen (YoY +0.3%) for the electronic parts business. Facilities investment for the period ending March 2027 is planned at 12.1 billion yen with depreciation and amortization at 6.2 billion yen, including a short-circuit testing facility (operation to be started in spring 2027) and the construction of a second plant at Tochigi Nogi Plant (operation to be started in April 2028).

Item (million yen)	2026/3 Results	2027/3 Plan	(YoY) Change
Net sales	195,783	210,000	+7.3%
Operating profit	15,446	16,700	+8.1%
Ordinary profit	16,260	17,000	+4.5%
Profit attributable to owners of parent	11,493	11,600	+0.9%

Shareholder Returns

Starting from the period ended March 2025, the Company adopted a dividend policy with a payout ratio target of 50% and a minimum DOE of 4.0%. For the fiscal year ended March 31, 2026, the dividend for the year is 152 yen (up 20 yen from the plan) due to the absence of extraordinary income posted in the previous fiscal year (approximately 2.4 billion yen), consisting of an interim dividend of 62 yen and a year-end dividend of 90 yen, with a consolidated dividend payout ratio of 50.2% and DOE of 4.8%. For the fiscal year ending March 2027, dividends for the year will be 154 yen (interim 77 yen, year-end 77 yen) with a consolidated dividend payout ratio of 50.4%.

Item	25/3	26/3	27/3 (Plan)
Dividend for the year	160 yen	152 yen	154 yen
Interim / Year-end	¥64 / ¥96	¥62 / ¥90	¥77 / ¥77
Dividend payout ratio	50.2%	50.2%	50.4%
DOE	5.4%	4.8%	–

Mid-Term Management Plan

Under the 2026 Mid-Term Management Plan, the financial targets for 2027/3 are consolidated net sales of 200 billion yen (of which overseas net sales 20 billion yen, an overseas ratio of 10%), consolidated operating profit of 15 billion yen (operating profit rate 7.5%), and ROE of 9.0% or more, compared with 2024/3 results of 160.7 billion yen in net sales and 11.9 billion yen in operating profit. Actual results for the period ended March 2026 (the second year of the medium-term plan) were consolidated net sales of 195.7 billion yen, consolidated operating profit of 15.4 billion yen, and ROE of 9.6%, exceeding the ROE target. The company states that PBR rose to 1.29x at the end of March 2026 (1.38x at the end of April 2026), supported by improved profitability and market expectations of strong demand for electrical equipment.

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.