A construction hangover
Nisso Group Co., Ltd. (TSE: 3440) reported consolidated results for FY8/2026, the twelve months from September 1, 2025 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales fell 6.6% to ¥21,512 million, operating profit 55.1% to ¥620 million and ordinary profit 56.8% to ¥605 million. EBITDA, the measure the group manages to, fell 23.1% to ¥1,648 million and return on equity slipped to 4.0%. Net profit attributable to owners of the parent fell 43.6% to ¥517 million, helped by a gain on selling its shares in subsidiary Dairitsu.
Data centres up, solar mounts down
Metal processing sales slipped 3.8% to ¥7,697 million and segment profit fell 36.4% to ¥698 million: data-center projects were strong, but sales of solar-array mounting frames and metal sandwich panels declined, and the order backlog ended the year 38.1% lower at ¥1,956 million. Chemical products grew sales 78.0% to ¥4,869 million and profit 40.1% to ¥284 million, with Taiho and Izumi Seisakusho, acquired the previous year, contributing for a full year. Construction sales dropped 62.4% to ¥2,554 million and profit 94.9% to ¥38 million after a year in which several large projects progressed at once. The lifestyle segment, renamed from tiles after B SLASH HOLDINGS and its subsidiaries were consolidated, grew sales 16.0% to ¥6,368 million, but upfront investment at Kanaete and advertising at Bellflats ahead of future completions widened its loss to ¥299 million from ¥150 million.
Balance sheet and outlook
Total assets rose 30.3% to ¥35,104 million, mainly on more cash and real estate for sale, funded by higher short- and long-term borrowings, and the equity ratio fell to 36.9% from 46.9%. Operating cash flow was ¥2,402 million and cash ended the year at ¥10,769 million. For FY8/2027, the final year of its medium-term plan, the group forecasts net sales of ¥27,000 million (+25.5%), operating profit of ¥900 million (+45.0%) and EBITDA of ¥2,020 million, as full-year contributions from Bellflats and B's Nexus outweigh the loss of Dairitsu; net profit is expected to fall 49.7% to ¥260 million. The dividend rose to ¥42 from ¥40, and ¥40 is planned for FY8/2027. After the year end the company agreed to invest as the main limited partner in a new ¥2 billion fund targeting mainly domestic manufacturers.
| Metric | FY8/2026 | FY8/2025 | Change |
|---|---|---|---|
| Net sales (¥ million) | 21,512 | 23,037 | −6.6% |
| Operating profit (¥ million) | 620 | 1,383 | −55.1% |
| EBITDA (¥ million) | 1,648 | 2,144 | −23.1% |
| Ordinary profit (¥ million) | 605 | 1,401 | −56.8% |
| Net profit attrib. to owners of parent (¥ million) | 517 | 917 | −43.6% |
| EPS (¥) | 80.58 | 141.88 | −43.2% |
| Metal processing — revenue (¥ million) | 7,697 | 8,002 | −3.8% |
| Metal processing — segment profit (¥ million) | 698 | 1,097 | −36.4% |
| Chemical products — revenue (¥ million) | 4,869 | 2,734 | +78.0% |
| Chemical products — segment profit (¥ million) | 284 | 203 | +40.1% |
| Construction — revenue (¥ million) | 2,554 | 6,796 | −62.4% |
| Construction — segment profit (¥ million) | 38 | 753 | −94.9% |
| Lifestyle — revenue (¥ million) | 6,368 | 5,491 | +16.0% |
| Lifestyle — segment profit (¥ million) | −299 | −150 | loss widened |
| Total assets (¥ million) | 35,104 | 26,948 | +30.3% |
| Net assets (¥ million) | 12,958 | 12,648 | +2.5% |
| Equity ratio | 36.9% | 46.9% | −10.0 pt |
| FY8/2027 guidance — revenue (¥ million) | 27,000 | — | +25.5% |
| FY8/2027 guidance — operating profit (¥ million) | 900 | — | +45.0% |
| FY8/2027 guidance — EBITDA (¥ million) | 2,020 | — | +22.5% |
| FY8/2027 guidance — ordinary profit (¥ million) | 730 | — | +20.6% |
| FY8/2027 guidance — net profit (¥ million) | 260 | — | −49.7% |
| Annual dividend per share (¥) | 42.00 | 40.00 | +5.0% |
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.