NISSO GROUP Co.,Ltd. Revises Earnings Forecast — Revenue Down 13.1%

NISSO GROUP Co.,Ltd. (TSE:3440) has downwardly revised its consolidated earnings forecast for the fiscal year ending August 2026, citing weakness in metal processing and construction operations alongside one-time M&A costs.

ItemBeforeAfterChange
RevenueJPY 23.6bnJPY 20.5bn-13.1%
Operating ProfitJPY 900MJPY 300M-66.7%
EBITDA※JPY 1.94bnJPY 1.34bn-31.0%
Ordinary IncomeJPY 890MJPY 268M-69.9%
親会社株主に帰属する当期純利益JPY 520MJPY 542M+4.2%
1株当たり当期純利益JPY 80.99/shareJPY 84.41/share+JPY 3.42/share

The company attributed the downward revision to three primary factors. Metal processing sales declined due to reduced demand for solar array support frames and metal sandwich panels, though data center-related projects remained solid. Construction operations faced headwinds from project schedule revisions and delayed new contract acquisition. Additionally, NISSO GROUP incurred JPY 239M in one-time M&A advisory fees related to the May 2026 acquisition of B SLASH HOLDINGS Co., Ltd. Four newly consolidated subsidiaries—B SLASH HOLDINGS, Bellflats, Bees Nexus, and Bees Conception—are expected to post operating losses in the fourth quarter due to lower handover volumes during that period.

Despite the operational challenges, net profit attributable to parent company shareholders is projected to increase 4.2% to JPY 542M, supported by an anticipated special gain from the full divestiture of Dairitsu Co., Ltd. shares in the fourth quarter. However, the 66.7% collapse in operating profit underscores significant near-term headwinds in core business profitability. Investors should monitor management’s execution on business stabilization initiatives and the contribution from newly acquired subsidiaries in coming quarters.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.