Nissha shares plunge after company slashes FY2026 guidance to a loss

Nissha Co., Ltd. <7915> shares fell sharply after Nissha revised downward its consolidated earnings forecast for the fiscal year ending Dec 2026 after market close on Sep 30. Nissha lowered its net sales forecast to 195.0 billion yen from 198.0 billion yen (up 0.1% year-on-year), swung its operating profit guidance to a loss of 3.3 billion yen from a profit of 7.0 billion yen (compared with profit of 4.04 billion yen in the prior fiscal year), and revised its net profit forecast to a loss of 6.2 billion yen from a profit of 3.2 billion yen (compared with profit of 1.01 billion yen in the prior fiscal year). The downward revisions drew selling pressure.

The revision was driven by failure to achieve an anticipated recovery in tablet-related demand in the Device segment during the second half. In addition to goodwill impairment losses recorded in the first half, demand trends and rising production-related costs in the decorative materials segment of Industrial Materials are expected to further weigh on earnings.

Simultaneously, Nissha released its delayed Jun interim financial results, reporting net sales of 96.033 billion yen (down 1.0% year-on-year), an operating loss of 4.5 billion yen (compared with operating profit of 2.558 billion yen in the same period of the prior year), and a net loss of 5.473 billion yen (compared with net profit of 20 million yen in the same period of the prior year).

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.