Niterra: Raises FY2027 net profit to ¥125bn, pre-tax profit to fall

Niterra raised its consolidated forecast for the fiscal year ending March 2027. Revised net profit is expected to exceed the previous year’s result, while pretax profit is set to fall short.

The increases from the previous forecast are 2.5% for revenue, 6.7% for both operating and pretax profit, and 19.0% for net profit. Compared with the previous year, revenue, operating profit and net profit are expected to rise, while pretax profit is forecast to decline. Net profit will exceed the previous year, but not every profit measure is set to improve.

Earnings per share is calculated on the assumption that the one-for-two stock split effective Oct. 1, 2026, had taken place. The previous-year EPS figure also assumes the split took place at the start of that year for comparison.

Niterra expects results to exceed its forecast announced on April 30, citing solid performance in the interim consolidated accounting period and other factors. The main factors behind the revision and assumptions included in the forecast are as follows.

• Currency impact: The yen’s weakness supported results. The assumptions for the second half are ¥150 to the U.S. dollar and ¥180 to the euro.
• Business environment: Niterra continues to monitor factors including price fluctuations in precious metals, a key raw material for its main products, the situation in the Middle East and China’s export restrictions.
• Withdrawal-related losses: Niterra still expects results to exceed its previous forecast after taking into account losses associated with its withdrawal from Wells’ automotive parts business, announced in August 2026, and other factors.

Niterra specified its second-half currency assumptions amid changes in exchange rates and the broader external environment. Yen weakness has contributed to the stronger outlook, making exchange-rate movements a key factor to watch in assessing future results.

During the interim period, Niterra recorded valuation gains as financial income after measuring the fair value of some of its investment securities. However, the full-year forecast does not include gains recorded in the interim period.

• Reason for exclusion: Market prices for some components used to determine the valuations moved during the interim period and continued to fluctuate, including further declines.
• Outlook: Niterra judged that ongoing market-price volatility made it difficult to set a reliable assumption for including the gains in its full-year forecast.

Excluding the gains leaves the forecast without a volatile element. Actual financial income and net profit may differ from the forecast depending on future market-price movements. The valuation gains are not included in the forecast, an important point to keep in mind when assessing the upgraded figures.