Nippon Filcon Co., Ltd. (TSE: 5942), a maker of industrial fabrics and precision products — best known for the woven "wires" used in papermaking machines and for photomasks and etched metal/film components used in electronics — reported results for the first half (December 1, 2025–May 31, 2026) of its fiscal year ending November 2026. Under Japanese GAAP, consolidated revenue rose 7.0% to ¥14.36 billion, operating profit surged 195.4% to ¥834 million, ordinary profit jumped 189.1% to ¥1.00 billion and net profit attributable to owners rose 88.1% to ¥527 million. EPS was ¥27.26.
Photomask business leads the surge
The Electronic Materials & Photomask segment was the standout, with revenue up 10.9% to ¥2.40 billion and segment profit up 234.9% to ¥486 million, as strong sales of communication-device products lifted both the etching and photomask lines and lower depreciation (following a prior-year impairment) boosted margins. AI-related demand at the leading edge remains robust, while communications, automotive and industrial-equipment demand is recovering.
Papermaking and industrial fabrics
The Industrial Functional Filters & Conveyor segment — papermaking wires plus industrial mesh for sieving, filtration and conveying — grew revenue 4.7% to ¥10.19 billion and segment profit 39.8% to ¥606 million. Domestic paper demand kept falling as producers cut capacity, but overseas paperboard, sanitary-paper and nonwoven demand stayed solid, and Chinese food-industry conveyor-belt sales rose; a subsidiary's pension-scheme change also cut costs.
Smaller segments and balance sheet
The Environment & Water Treatment segment swung to an ¥80 million profit (from a loss) on revenue up 23.4% to ¥1.26 billion as a large project advanced, while Real Estate Rental held steady at ¥515 million revenue and ¥386 million profit. Total assets stood at ¥43.32 billion and net assets at ¥23.51 billion, for an equity ratio of 53.3%.
Dividend and raised outlook
Nippon Filcon kept its annual dividend at ¥28.00 per share (¥14 interim plus ¥14 year-end) and revised its full-year FY11/2026 guidance upward, now guiding revenue of ¥28.50 billion (+2.4%), operating profit of ¥1.40 billion (+109.6%), ordinary profit of ¥1.60 billion (+69.5%) and net profit of ¥800 million, for EPS of ¥41.34.
| Metric | H1 FY11/26 | H1 FY11/25 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 14.36 | 13.42 | +7.0% |
| Operating profit (¥m) | 834 | 282 | +195.4% |
| Ordinary profit (¥bn) | 1.00 | 0.35 | +189.1% |
| Net profit attrib. (¥m) | 527 | 280 | +88.1% |
| EPS (¥) | 27.26 | 14.47 | +88.4% |
| Equity ratio | 53.3% | 51.6% | +1.7pp |
| FY11/26 OP guidance (¥bn) | 1.40 | 0.67 | +109.6% |
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.