Nitto Denko reported its results for the fiscal year ended March 2026 on Monday, with operating profit of ¥183.6 billion, down 1% compared with the prior year and slightly beneath the companys internal guidance of ¥186 billion.
The outturn also missed the consensus analyst expectation of ¥186.4 billion. Within the companys divisional mix, the Industrial Tape segment delivered results above expectations, while both Optronics and Human Life recorded weaker-than-expected performance.
The company said approximately ¥1.5 billion of the shortfall was attributable to special factors. These included impairment losses on capital, underperformance in optical film for IT applications, and the contract development and manufacturing organization business, or CDMO.
Nitto Denko kept its dividend for fiscal 2026 unchanged at ¥60 per share.
Outlook for fiscal 2027
For the fiscal year ending March 2027, Nitto Denko guided to operating profit of ¥193 billion, which represents a 5% rise year-over-year. The guidance is based on an assumed exchange rate of ¥153 to the U.S. dollar, versus ¥150 to the dollar used in fiscal 2026 assumptions. The company anticipates 3% growth in the first half of the fiscal year and 8% growth in the second half.
Managements forecast for fiscal 2027 expects operating profit in Optronics to be broadly flat, continued strong growth in Industrial Tape, and a narrowing of losses in the Human Life division. The guidance also incorporates assumptions of higher laptop production volumes overall, although with a decline in high-end volumes, and steady growth in CDMO sales related to hepatitis B.
Nitto Denko said it plans to increase the dividend to ¥64 per share for fiscal 2027.
The company hosted a teleconference on Monday evening following the results announcement.
Summary analysis
The results show a modest decline in operating profit against the prior year and a small miss relative to both company guidance and analyst expectations, driven in part by one-off charges and softer performance in select divisions. The fiscal 2027 plan targets recovery and growth led by Industrial Tape, with currency assumptions and laptop production trends embedded in the outlook.