Nihon Tokushu Toryo Co., Ltd. (TSE: 4619), known by the abbreviation "NPC," is a Tokyo-based specialty manufacturer of automotive coatings and sound-deadening and insulation materials, with additional lines in aircraft de-icing fluids and traffic and road-marking paints. On May 14, 2026 the company reported full-year results for FY2026 (April 2025 – March 2026) showing a softer top line but resilient bottom-line profitability. Consolidated revenue declined 6.3% year-on-year to ¥61,889 million, from ¥66,060 million, and operating profit fell 10.1% to ¥4,004 million, from ¥4,456 million.
Despite the operating decline, ordinary profit edged up 1.9% to ¥6,834 million (from ¥6,709 million), and profit attributable to owners of the parent rose 6.1% to ¥5,244 million (from ¥4,942 million). Earnings per share advanced to ¥242.39 from ¥227.24, while return on equity stood at 8.9%. The gap between the falling operating profit and the rising ordinary and net figures underscores how non-operating contributions — chiefly equity-method earnings — cushioned the year.
Revenue softness, but profit resilience driven by equity-method income
The revenue contraction reflects softer demand across NPC's core automotive-related coatings and sound-insulation businesses, where volumes are tied to vehicle production schedules. Yet the company's affiliated and joint-venture interests delivered strongly: equity-method investment income reached ¥2,443 million, a key reason ordinary profit rose even as operating profit slipped. Comprehensive income increased 11.5% to ¥6,760 million, reflecting both the higher net profit and favorable other-comprehensive-income movements. The pattern highlights NPC's hybrid earnings model, in which directly consolidated operations are complemented by a meaningful stream of profit from minority-held affiliates.
Balance sheet: a 70.5% equity ratio and stronger cash generation
NPC's balance sheet remained conservatively financed. Total assets were broadly flat at ¥85,375 million (from ¥85,243 million), while net assets rose to ¥67,023 million from ¥64,114 million on retained-earnings growth. The equity ratio reached a robust 70.5%, and net assets per share stood at ¥2,828.85 — pointing to a debt-light structure with ample capacity for shareholder returns. Cash generation improved markedly: operating cash flow more than doubled to ¥6,419 million, from ¥3,119 million in FY2025. Investing activities used -¥5,191 million and financing activities used -¥4,770 million (reflecting dividends and debt management), leaving period-end cash and equivalents of ¥12,586 million.
Dividend lifted to ¥125; FY2027 guided to 7% revenue growth
Reflecting its strong capital position and higher net profit, NPC raised the annual dividend sharply to ¥125 per share for FY2026 (¥50 interim + ¥75 year-end), up from ¥90 the prior year, for a payout ratio of 52.2%. For FY2027 (ending March 2027), the company guided for a recovery in revenue to ¥66,400 million (+7.3%), with operating profit of ¥4,050 million (+1.1%), ordinary profit of ¥7,350 million (+7.5%), and net profit of ¥5,300 million (+1.1%), equivalent to EPS of ¥248.86. The company forecast a further increase in the annual dividend to ¥130 per share (¥55 interim + ¥75 year-end), signalling confidence in sustained earnings and a continued commitment to shareholder returns.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 61,889 | 66,060 | −6.3% |
| Operating profit (¥ million) | 4,004 | 4,456 | −10.1% |
| Ordinary profit (¥ million) | 6,834 | 6,709 | +1.9% |
| Net profit attrib. to owners (¥ million) | 5,244 | 4,942 | +6.1% |
| EPS (¥) | 242.39 | 227.24 | +6.7% |
| ROE | 8.9% | — | — |
| Equity-method investment income (¥ million) | 2,443 | — | — |
| Total assets (¥ million) | 85,375 | 85,243 | +0.2% |
| Net assets (¥ million) | 67,023 | 64,114 | +4.5% |
| Equity ratio | 70.5% | — | — |
| Operating cash flow (¥ million) | 6,419 | 3,119 | +105.8% |
| Annual dividend (¥) | 125 | 90 | +38.9% |
| FY2027 guidance — revenue (¥ million) | 66,400 | — | +7.3% |
| FY2027 guidance — operating profit (¥ million) | 4,050 | — | +1.1% |
| FY2027 guidance — net profit (¥ million) | 5,300 | — | +1.1% |
| FY2027 guidance — EPS (¥) | 248.86 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.