IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

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<ul><li>Nitto Kogyo (hereinafter, the Company) reported its Q3 FY2026/3 results. All segments recorded increases in both sales and profits, supported by steady corporate capital expenditure demand, rising appetite for IT investment, and project wins in the domestic automotive market.</li><li>Meanwhile, quarterly net profit attributable to owners of parent (net profit) dropped mainly due to the absence of JPY 2,395 mn in negative goodwill recorded in the same period of the previous fiscal year.</li><li>This negative goodwill was recognized in connection with the acquisition of shares in Tempearl Industrial, which the Company made into a consolidated subsidiary in April 2024.</li></ul>

Nitto Kogyo (hereinafter, the Company) reported its Q3 FY2026/3 results. All segments recorded increases in both sales and profits, supported by steady corporate capital expenditure demand, rising appetite for IT investment, and project wins in the domestic automotive market.Meanwhile, quarterly net profit attributable to owners of parent (net profit) dropped mainly due to the absence of JPY 2,395 mn in negative goodwill recorded in the same period of the previous fiscal year.This negative goodwill was recognized in connection with the acquisition of shares in Tempearl Industrial, which the Company made into a consolidated subsidiary in April 2024.

Q3 Follow-Up: NITTO KOGYO CORPORATION (6651 JP) - March 17, 2026

<ul><li>Nitto Kogyo Corporation (hereafter, the Company) announced H1 earnings results for FY2026/3 on 10 November 2025 (See the table below).</li><li>Against the backdrop of strong CAPEX and growing  IT investment appetite, as well as project wins in the domestic automobile market, all segments recorded increases in both sales and profits.</li><li>The Company posted record-high net sales for Q2. Meanwhile, operating profit rose, reaching the second-highest level for Q2 on the back of higher marginal profit driven by sales growth and a JPY 500 mn uplift from improved project pricing. </li></ul>

Nitto Kogyo Corporation (hereafter, the Company) announced H1 earnings results for FY2026/3 on 10 November 2025 (See the table below).Against the backdrop of strong CAPEX and growing  IT investment appetite, as well as project wins in the domestic automobile market, all segments recorded increases in both sales and profits.The Company posted record-high net sales for Q2. Meanwhile, operating profit rose, reaching the second-highest level for Q2 on the back of higher marginal profit driven by sales growth and a JPY 500 mn uplift from improved project pricing. 

Q2 Follow-Up: Nitto Kogyo Corporation (6651 JP) - December 11, 2025

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Thematic (Sector/Industry)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/106/452/original/2019-11-17_11-54-09.png?1573959284" class="editor-image img-responsive" data-smartkarma-image-id="106452"></figure><div class="content-caption">Source: Japan Analytics</div><p><strong>4TH DOWN AND A FEW MORE TO GO</strong> - The latest quarterly results are now, with the exception of three large insurance companies are currently in the market and, to loosely paraphrase the under-rated Jesse Winchester's second album title, this is the fourth straight 'down' quarter with the prospect a few more to come. Operating Income has declined by 7.8% and Net Income by 18.8%, taking margins to 6.9% and 4.6%, respectively - declines of 84bps and 122bps. The market has celebrated these new two-year lows by rising to new two-year highs, leaving some to wonder what they are missing, other than yet more central bank liquidity. The trailing-twelve-month (TTM) price-earnings ratio is now 17 times, the highest since 5th February 2018, ten trading days after the long-term market peak.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/106/458/original/2019-11-17_12-49-55.png?1573962614" class="editor-image img-responsive" data-smartkarma-image-id="106458"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/106/459/original/2019-11-17_13-10-47.png?1573963867" class="editor-image img-responsive" data-smartkarma-image-id="106459"></figure><div class="content-caption">Source: Japan Analytics</div><p><strong>THE EARNINGS CYCLE HAS YET TO BOTTOM</strong> -  Our Results &amp; Forecast/Revision Score data series cover the last sixteen years of quarterly earnings and eleven years of forecasts and revisions and measure both results and forecasts but also their momentum, providing a better correlation with the market direction than past earnings.   The Forecast/Revision Score leads the Results Score by several months, and the market leads or lags depending on monetary and liquidity conditions. Although both Scores recovered in the last five days of results announcements, the Forecast/Revision Score of 0.45 reached on 8th November is the lowest such score in ten years and is suggesting that earnings have yet to bottom.</p><div class="content-highlight"><p><strong>WISHFUL THINKING? - The 'gap' between market expectations and actual and forecast earnings momentum is now wider than at any time since late 2014, shortly before the market peak of May 2015. Is this foresight or just wishful thinking? We tend to the latter interpretation.</strong></p></div><p><strong>In the DETAIL section below, we shall provide a full breakdown of the results and revisions announcements by Sector, Peer Group and company and offer brief comments on several recommended buys and sells.</strong></p>

Source: Japan Analytics4TH DOWN AND A FEW MORE TO GO - The latest quarterly results are now, with the exception of three large insurance companies are currently in the market and, to loosely paraphrase the under-rated Jesse Winchester's second album title, this is the fourth straight 'down' quarter with the prospect a few more to come. Operating Income has declined by 7.8% and Net Income by 18.8%, taking margins to 6.9% and 4.6%, respectively - declines of 84bps and 122bps. The market has celebrated these new two-year lows by rising to new two-year highs, leaving some to wonder what they are missing, other than yet more central bank liquidity. The trailing-twelve-month (TTM) price-earnings ratio is now 17 times, the highest since 5th February 2018, ten trading days after the long-term market peak.Source: Japan AnalyticsTHE EARNINGS CYCLE HAS YET TO BOTTOM -  Our Results &amp; Forecast/Revision Score data series cover the last sixteen years of quarterly earnings and eleven years of forecasts and revisions and measure both results and forecasts but also their momentum, providing a better correlation with the market direction than past earnings.   The Forecast/Revision Score leads the Results Score by several months, and the market leads or lags depending on monetary and liquidity conditions. Although both Scores recovered in the last five days of results announcements, the Forecast/Revision Score of 0.45 reached on 8th November is the lowest such score in ten years and is suggesting that earnings have yet to bottom.WISHFUL THINKING? - The 'gap' between market expectations and actual and forecast earnings momentum is now wider than at any time since late 2014, shortly before the market peak of May 2015. Is this foresight or just wishful thinking? We tend to the latter interpretation.In the DETAIL section below, we shall provide a full breakdown of the results and revisions announcements by Sector, Peer Group and company and offer brief comments on several recommended buys and sells.

🇯🇵 Japan • Results & Revisions Review - Wishful Thinking

<ul><li>Nitto Kogyo Corporation (hereafter, the Company) announced earnings results for Q1 FY2026/3 after the market closed on August 4, 2025.</li><li>Against the backdrop of strong capital investment demand and growing IT investment appetite, all segments experienced sales growth.</li><li>The Company reported consolidated net sales of JPY 41,842 mn (+8.0% YoY), operating profit of JPY 1,854 mn (+15.8% YoY), and ordinary profit of JPY 2,033 mn (+1.9% YoY), all showing growth. </li></ul>

Nitto Kogyo Corporation (hereafter, the Company) announced earnings results for Q1 FY2026/3 after the market closed on August 4, 2025.Against the backdrop of strong capital investment demand and growing IT investment appetite, all segments experienced sales growth.The Company reported consolidated net sales of JPY 41,842 mn (+8.0% YoY), operating profit of JPY 1,854 mn (+15.8% YoY), and ordinary profit of JPY 2,033 mn (+1.9% YoY), all showing growth. 

Q1 Follow-Up - NITTO KOGYO CORPORATION (6651 JP) - September 5, 2025

<ul><li>Nitto Kogyo Corporation (hereafter, the Company) announced full-year earnings results for FY2025/3 after market close on May 15, 2025.</li><li>The Company reported net sales of JPY 184,683 mn (+14.9% YoY), operating profit of JPY 13,432 mn (+12.2% YoY), ordinary profit of JPY 13,516 mn (+7.6% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 12,097 mn (+38.8% YoY).</li><li>Price revisions and improvements in transaction prices substantially boosted profits. Net profit rose substantially as it recorded a gain on bargain purchases of JPY 2,395 mn under extraordinary income, in line with the acquisition of consolidated subsidiary Tempearl Industry in April 2024. </li></ul>

Nitto Kogyo Corporation (hereafter, the Company) announced full-year earnings results for FY2025/3 after market close on May 15, 2025.The Company reported net sales of JPY 184,683 mn (+14.9% YoY), operating profit of JPY 13,432 mn (+12.2% YoY), ordinary profit of JPY 13,516 mn (+7.6% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 12,097 mn (+38.8% YoY).Price revisions and improvements in transaction prices substantially boosted profits. Net profit rose substantially as it recorded a gain on bargain purchases of JPY 2,395 mn under extraordinary income, in line with the acquisition of consolidated subsidiary Tempearl Industry in April 2024. 

Q4 Follow-Up - NITTO KOGYO CORPORATION (6651 JP)

Japan

NITTO KOGYO CORPORATION manufactures and sells a variety of power switchboards. The Company also manufactures metal/resin parts for power switchboards, and circuit breakers.

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Nitto Kogyo (6651 JP)

Q3 Follow-Up: NITTO KOGYO CORPORATION (6651 JP) - March 17, 2026

his negative goodwill was recognized in connection with the acquisition of shares in Tempearl Industrial, which the Company made into a...

Sessa Investment Research

Q2 Follow-Up: Nitto Kogyo Corporation (6651 JP) - December 11, 2025

Nitto Kogyo Corporation (hereafter, the Company) announced H1 earnings results for FY2026/3 on 10 November 2025 (See the table below).

Sessa Investment Research

🇯🇵 Japan • Results & Revisions Review - Wishful Thinking

4TH DOWN AND A FEW MORE TO GO - The latest quarterly results are now, with the exception of three large insurance companies are currently in the...

Campbell Gunn

Q1 Follow-Up - NITTO KOGYO CORPORATION (6651 JP) - September 5, 2025

Nitto Kogyo Corporation (hereafter, the Company) announced earnings results for Q1 FY2026/3 after the market closed on August 4, 2025.

Sessa Investment Research

Q4 Follow-Up - NITTO KOGYO CORPORATION (6651 JP)

Sales and profit grew on improved transaction price and price revisions in FY2025/3; Targeting third consecutive year of operating profit growth...

Sessa Investment Research

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