Nippon Coke & Engineering (3315): FY2025 Results Summary — Return to Operating Profit of 0.6 Billion Yen; Net Profit of 0.5 Billion Yen Projected for Next Year

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

Note: Nippon Coke & Engineering does not publish an English 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 (its most recent full-year results presentation), with figures transcribed as reported. The company’s most recent completed full year, the fiscal year ended March 31, 2026 (labeled “FY3/26” in this article, following the materials), is classified here as FY2025.

On May 27, 2026, Nippon Coke & Engineering released its results presentation for the fiscal year ended March 31, 2026. Consolidated net sales were 91,386 million yen (down 7,659 million yen, or 7.7%, year on year); although sales volume in the Coke Business rose by 100,000 tonnes year on year thanks to the operation of the new 2A oven, sales declined due to the impact of market conditions and other factors. Consolidated operating results improved significantly to an operating profit of 607 million yen (versus an operating loss of 8,562 million yen in the previous year), and the ordinary loss narrowed to 276 million yen (versus an ordinary loss of 10,269 million yen in the previous year). On the other hand, as a result of recording extraordinary losses of 7,057 million yen, including impairment losses related to the optimization of the coke production structure, net loss attributable to owners of parent came to 7,678 million yen.

Consolidated Results (Full Year)

According to the consolidated results overview (in units of 100 million yen), net sales decreased by 7.7 billion yen (▲7.7%) from 99.0 billion yen in the previous year to 91.3 billion yen. Operating results swung into the black, from a loss of 8.6 billion yen in the previous year to a profit of 0.6 billion yen (operating margin of 0.65%), and the ordinary loss narrowed from 10.3 billion yen to 0.3 billion yen. Net loss went from 13.9 billion yen to 7.7 billion yen. Figures in the table below are in 100 million yen.

Item	FY3/25 (Prior Year)	FY3/26 (Current Year)	YoY Change
Net sales	990	913	▲77 (▲7.7%)
Operating profit (loss)	▲86	6	+92
Ordinary profit (loss)	▲103	▲3	+100
Net profit (loss)	▲139	▲77	+62

Segment Results

In the Coke Business, sales volume rose by 100,000 tonnes year on year to 972,000 tonnes owing to the improved production capacity of the new 2A oven, but net sales fell by 2.6 billion yen year on year to 56.1 billion yen due to the impact of market conditions and other factors. The operating loss narrowed significantly, from 12.3 billion yen to 2.3 billion yen, thanks to fixed-cost reductions such as lower repair expenses and the effect of increased production. In the Fuel and Resources Recycling Business, sales volume fell by 45,000 tonnes year on year as customers’ fuel-switching trend continued; net sales decreased by 3.9 billion yen year on year to 23.3 billion yen, and operating profit decreased by 0.1 billion yen year on year to 2.6 billion yen. In the Comprehensive Engineering Business, net sales decreased by 1.4 billion yen year on year to 7.9 billion yen and operating profit decreased by 0.6 billion yen year on year to 1.4 billion yen, due to the completion of large equipment delivery projects in the previous year; however, the business secured a certain level of earnings through its development in niche fields, including the launch of the “Tea Meister Mill,” a new product for matcha production. Other (port transportation business, real estate business, etc.) posted net sales of 4.0 billion yen, up 0.2 billion yen year on year, and operating profit of 0.6 billion yen, level with the previous year. Figures in the table below are in 100 million yen.

Segment	Metric	FY3/25	FY3/26	YoY Change
Coke Business	Net sales	587	561	▲26
Coke Business	Operating profit (loss)	▲123	▲23	+100
Fuel and Resources Recycling Business	Net sales	272	233	▲39
Fuel and Resources Recycling Business	Operating profit	27	26	▲1
Comprehensive Engineering Business	Net sales	93	79	▲14
Comprehensive Engineering Business	Operating profit	20	14	▲6
Other	Net sales	38	40	+2
Other	Operating profit	6	6	±0

Full-Year Forecast (FY3/27)

For the fiscal year ending March 31, 2027, the company will promote production stabilization in the Coke Business following the completion of the transition to a sound two-battery structure, as well as earnings expansion measures in each business, and forecasts net sales of 101.6 billion yen (up 10.3 billion yen, or 11.8%, year on year). Mainly because the Coke Business is expected to return to profitability as the effects of fixed-cost reductions fully materialize, the company expects an operating profit of 3.6 billion yen (up 3.0 billion yen year on year). It forecasts ordinary profit of 2.0 billion yen and net profit attributable to owners of parent of 0.5 billion yen, anticipating a substantial improvement in its profit structure. Figures in the table below are in 100 million yen.

Item	FY3/26 (Actual)	FY3/27 (Forecast)	YoY Change
Net sales	913	1,016	+103
Operating profit (loss)	6	36	+30
Ordinary profit (loss)	▲3	20	+23
Net profit (loss)	▲77	5	+82

Segment Forecast

In the Coke Business, the company will pursue fixed-cost efficiency through consolidation into two batteries, higher output and variable-cost reductions through productivity-enhancing investment, and the diversification and expansion of its customer base, and expects a return to profitability with net sales of 63.5 billion yen and operating profit of 1.0 billion yen (an improvement of 3.3 billion yen year on year). In the Fuel and Resources Recycling Business, while making use of infrastructure such as its privately owned port facilities, the company forecasts operating profit of 2.2 billion yen, down 0.4 billion yen year on year, as sales volume of steaming coal is expected to decline. In the Comprehensive Engineering Business, the company expects steady performance, driven mainly by strong orders for matcha-related equipment, and forecasts operating profit of 1.6 billion yen, up 0.2 billion yen year on year. Figures in the table below are in 100 million yen.

Segment	Metric	FY3/26 (Actual)	FY3/27 (Forecast)	YoY Change
Coke Business	Net sales	561	635	+74
Coke Business	Operating profit (loss)	▲23	10	+33
Fuel and Resources Recycling Business	Net sales	233	243	+10
Fuel and Resources Recycling Business	Operating profit (loss)	26	22	▲4
Comprehensive Engineering Business	Net sales	79	97	+18
Comprehensive Engineering Business	Operating profit (loss)	14	16	+2
Other	Net sales	40	40	±0
Other	Operating profit (loss)	6	5	▲1
Corporate expenses	Operating profit (loss)	▲17	▲16	+1

Shareholder Returns

The materials contain no explicit statement on the shareholder return policy. According to the consolidated statement of cash flows, dividends paid, shown as a component of cash flows from financing activities, went from 0.9 billion yen in the previous year to 0 billion yen in the current year.

Optimization of the Coke Production Structure and Topics

In the Coke Business, the company carried out impairment and disposal of idle facilities in connection with the move to two batteries; as a result, total assets decreased by 4.1 billion yen year on year, the equity ratio was 27.5% (down 4.3% year on year), and the D/E ratio was 1.93 times. In the Comprehensive Engineering Business, the company is advancing its business in niche fields, including the launch of the “Tea Meister Mill,” a new product for matcha production. For the fiscal year ending March 31, 2027, it has also set out the promotion of in-house production through stronger collaboration with its group company, Ariake Kiden Kogyo.

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.