NICHIAS Q1 Sales Rise 16% as AI-Driven Chip Equipment Lifts High-Performance Products 42%

Every profit line beats the sales line

NICHIAS Corporation (TSE: 5393) published consolidated results for the three months to June 30, 2026 on August 4, 2026 under Japanese GAAP. Net sales rose 16.0% to ¥71,954 million, operating profit 20.7% to ¥11,136 million, ordinary profit 28.3% to ¥11,850 million and net profit attributable to shareholders 25.3% to ¥8,231 million. Earnings per share were ¥43.56 against ¥34.09, restated for the three-for-one share split of April 1, 2026. Comprehensive income more than doubled to ¥11,342 million from ¥5,306 million.

The gap between operating and ordinary profit growth reflects non-operating income: ordinary profit exceeded operating profit by ¥714 million this quarter against ¥4 million a year earlier. The operating margin reached 15.5% against 14.9%, and the ordinary margin 16.5% against 14.9%.

Semiconductor equipment demand comes back

High-Performance Products, which supplies fluoropolymer and other materials into semiconductor manufacturing equipment, was the standout, with sales up 42.3% to ¥13,889 million and segment profit up 78.3% to ¥3,188 million as accelerating AI-related investment sharply revived demand. Plant Engineering & Sales, the largest segment, grew sales 14.5% to ¥22,215 million and profit 14.5% to ¥3,532 million on firm demand from oil refining and petrochemicals.

Industrial Products grew sales 16.9% to ¥15,655 million — semiconductor-related fluoropolymer products again, plus steady sealing materials — though profit rose a more modest 6.9% to ¥2,996 million. The two consumer-facing segments went the other way on profit: Automotive Parts grew sales 3.3% to ¥13,260 million on domestic demand but saw profit fall 10.4% to ¥986 million, and Building Materials grew sales 4.2% to ¥6,934 million on wrap-type fireproofing shipments — despite schedule delays at some large projects — with profit down 4.2% to ¥433 million.

Balance sheet, cash flow and guidance

Total assets rose ¥9,889 million from the March year-end to ¥317,012 million, with cash up ¥3,988 million, investment securities ¥3,790 million and trade receivables ¥1,674 million. Liabilities rose ¥5,263 million to ¥72,773 million on accrued expenses, deferred tax liabilities and trade payables. Net assets rose ¥4,626 million to ¥244,239 million: retained earnings added ¥3,818 million, valuation differences on securities ¥2,721 million and the currency-translation adjustment ¥513 million, against ¥2,548 million of treasury-share purchases. The equity ratio eased to 76.7% from 77.7%. Operating cash flow was ¥13,428 million against ¥3,793 million a year earlier, and cash at the quarter end reached ¥60,859 million.

NICHIAS revised upward the forecast it had published on May 11, 2026, and now guides to full-year net sales of ¥288,000 million (+14.3%), operating profit of ¥49,000 million (+32.4%), ordinary profit of ¥50,500 million (+28.2%) and net profit of ¥35,000 million (+10.6%), for earnings per share of ¥186.13; the first half is guided to ¥141,500 million of sales and ¥22,500 million of operating profit. The first quarter has delivered 22.7% of the full-year operating-profit target. The annual dividend forecast is ¥65.00, split ¥35.00 and ¥30.00, on the post-split share count; the ¥164.00 paid for FY3/2026 predates the three-for-one split and is not directly comparable.

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.