【Nihon Kogyo】Q1 Fiscal Year 2027 Financial Results｜Sales of 3.0 billion yen (YoY +1.0%)

Performance Overview

Nihon Kogyo's Q1 of the fiscal year ending March 2027 saw net sales of 3,090 million yen (YoY +1.0%), while operating profit decreased to 22 million yen (37.1% decline) and net income to 19 million yen (28.8% decline). Segment-wise, the exterior business experienced revenue growth, but profits from civil engineering materials and landscaping materials declined. Overall, rising raw material costs and increased expenses have impacted profitability. The financial position remains stable with total assets of 16,122 million yen and a shareholders' equity ratio of 53.1%.

Future Outlook and Shareholder Impact

The full-year consolidated earnings forecast projects sales of 15,300 million yen (YoY -6.2%) and net income of 410 million yen (29.1% decline), both continuing to decrease. While sales are expected to remain firm, ongoing cost increases and raw material price surges will likely impact profits. The scheduled year-end dividend is 45 yen, but shareholders should be aware of potential dilution and dividend yield implications. Going forward, the company will focus on cost management and expanding high-value-added products.