NOF Corporation revised consolidated earnings guidance for the fiscal year ending March 31, 2026. For the year, the company expects net sales of JPY 258,400 million, operating profit of JPY 46,000 million, profit attributable to owners of parent of JPY 38,200 million or JPY 166.18 per share against previous guidance net sales of JPY 252,000 million, operating profit of JPY 46,000 million, profit attributable to owners of parent of JPY 36,800 million or JPY 157.58 per share. The results for the six months ended September 30, 2025 have been lower than initial assumptions in the Functional Chemicals segment due to a decrease in shipments as a result of inventory adjustments by some customers in cosmetics-related products.
From the third quarter onward, cosmetics-related products in the Functional Chemicals segment are likely to undershoot initial forecasts for the full year despite the completion of inventory adjustments for some customers and the recovery of shipping. Defense-related products in the Explosives & Propulsion segment are likely to exceed initial forecasts due to the identification of contracts for certain transactions related to initial costs for the rapid acquisition, in which revenue is recognized based on the fulfillment of performance obligations over a certain period. Although the outlook for the global economy is expected to remain uncertain throughout the fiscal year, the progress achieved up through the six months ended September 30, 2025, the demand outlook, and the revised exchange rates suggest that the full-year net sales, ordinary profit, and profit attributable to owners of parent are likely to exceed the previously announced forecasts.
The direct impact of U.S. tariff policy is expected to be limited and immaterial throughout the fiscal year. If concerns arise over its impact on financial results, including the indirect impact on results, will disclose this information as appropriate. The expected average exchange rates for the full year in the assumptions on which the earnings forecasts are based were revised from the initial rates of 145 JPY/U.S. dollar and 160 JPY/Euro to 147 JPY/U.S. dollar and 170 JPY/Euro.
NOF CORPORATION is mainly engaged in the functional chemical products business, life science business and others. The Company operates in three segments. The Functional Chemical segment is engaged in the manufacture and sale of fatty acids, fatty acid derivatives, surfactants, ethylene oxide and propylene oxide derivatives, organic peroxides, petroleum chemicals, functional polymers, functional films, electronic materials and special rust prevention agents, as well as the rust prevention processing. The Life Science segment is engaged in the manufacture and sale of drug formulation materials for drug delivery systems (DDSs), edible oils and fats and health food products, among others. The Chemical segment is engaged in the manufacture and sale of industrial explosives, defense-related items, space-related products. The Company also operates in transportation business and real estate business.
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