Company ProfilePremiumNov 10, 2026

Nippon Soda Co., Ltd

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Nippon Soda Co., Ltd - Chemicals & Materials showcase

Year Founded & Workforce

1920

2,407 Employees

Industry

Chemicals & Materials

Services

Liquid Polybutadiene Market

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Nippon Soda Co., Ltd Overview

Nippon Soda is a mid-cap, diversified Japanese chemical group founded in 1920 as a chlor-alkali producer and progressively re-shaped into a portfolio anchored by two high-value franchises: research-based crop protection (Agri Business, 35% of FY3/26 sales) and specialty "Chemical Materials" (25%), complemented by lower-margin but stable trading/logistics, plant engineering and environmental-recycling businesses. Its crown jewels are niche, high-barrier products in which it holds globally relevant positions — the pharmaceutical excipient NISSO HPC (hydroxypropyl cellulose), liquid polybutadiene NISSO-PB for AI-server copper-clad laminates, KrF photoresist polymer VP-POLYMER, and proprietary agrochemicals such as Mospilan (acetamiprid) and Topsin-M. With FY3/26 net sales of JPY 152.1 billion, record net profit of JPY 18.3 billion, an equity ratio of ~66.6%, and a 50%+ total shareholder return policy, the company is a conservatively financed, R&D-led specialty player now pivoting toward healthcare (including animal health) and advanced ICT materials under its Stage III plan to FY3/30.

Company's own description

According to its Stage III medium-term plan (May 2026), Nippon Soda describes its mission as creating new value through the power of chemistry, and frames the group as supporting everyday life through chemical products and services across four "material" fields: Agriculture (securing food and sustainable agriculture), Healthcare (healthy life for all people), Environment (toward a resource-recycling society) and ICT (chemical functions for IT devices). The Yuho describes the parent's business as manufacturing, processing and marketing of industrial chemicals, synthetic resins and plastics, dyes, pharmaceuticals, agrochemicals, veterinary pharmaceuticals and other chemical products.

Business model and revenue model

Nippon Soda's revenue is overwhelmingly product-based (manufactured chemical sales), with secondary service revenues from logistics (warehousing, transport, customs brokerage), engineering/EPC contracts and waste treatment. There is no material subscription revenue. Licensing/active-ingredient supply is embedded in Agri Business: the company supplies proprietary active ingredients (AIs) to global majors and sells formulated products through its own overseas network and partners. The revenue mix by nature (approximation from FY3/26 segment data; company does not disclose a product/service split): Note: the above split is an analytical characterization; the company does not report revenue by nature.

Value-chain position

Agri Business: fully integrated R&D-type agrochemical originator — chemical synthesis, biological/safety research, formulation research, field evaluation, AI manufacturing (including via Nisso Namhae Agro in Korea) and formulation, registration and global marketing (Stage III plan). The company emphasizes that R&D-type agrochemical originators are largely limited to five overseas majors plus Japanese firms, and that Japanese originators punch above their weight in new AI discovery.

Chemical Materials: upstream chlor-alkali (caustic soda, chlorine, hydrochloric acid) feeding downstream fine/specialty chemistry (living anionic polymerization for NISSO-PB and VP-POLYMER; cellulose derivatization for HPC; penem API synthesis).

Trading & Logistics: captive and third-party distribution (Nisso Shoji) and specialized hazardous/pharma logistics (Sanwa Soko, Sanso Unyu).

Engineering: fine-chemical-type EPC (Nisso Engineering) and civil works (Nisso Kensetsu).

Eco Solutions: waste treatment, zinc recovery from electric-arc-furnace dust, sulfuric acid recycling (Nisso Metallochemical).

Customer types and end-markets

Customers include global agrochemical majors and distributors, farmers' cooperatives (via channels), generic and innovator pharmaceutical companies and supplement makers (HPC, SSF, faropenem API), copper-clad-laminate (CCL) and semiconductor-materials producers (NISSO-PB, 1,2-SBS, VP-POLYMER), thermal-paper manufacturers (color developers), battery-materials producers, industrial users of commodity chemicals, steelmakers (EAF dust treatment), and public/private construction clients (Engineering). End-markets: crop protection (fruit & vegetables first, expanding to grains), pharmaceuticals/nutraceuticals, semiconductors/electronics (AI servers, HBM, automotive chips), infrastructure, and environmental services.

Independent characterization

Nippon Soda is best understood as two engines and three stabilizers. The engines — Agri Business and specialty Chemical Materials — generated roughly 75% of FY3/26 segment operating profit (JPY 11.2 billion of JPY 14.97 billion before adjustments) on 60% of sales. Agri is cyclical and FX-sensitive (65.7% overseas sales ratio in FY3/26), while Chemical Materials has been structurally re-rated from a ~5–6% margin business to ~15–17% after exiting commodity lines (metallic sodium via Alkaline S.A.S., NISSO HI-CHLON, phenol-based color developers, sodium cyanide). The stabilizers (Trading & Logistics, Engineering, Eco Solutions) are low-growth and modest-margin but add scale and cash. A further, often-overlooked profit pillar is equity-method income (JPY 6.06 billion in FY3/26, chiefly Iharabras in Brazil), which made ordinary profit (JPY 22.99 billion) much larger than operating profit and is highly FX-sensitive (BRL/USD).

Strategy

Long-term vision and medium-term plans

The long-term vision "Brilliance through Chemistry 2030" (April 2020–March 2030) has three stages: Stage I (FY3/21–FY3/23, "strengthen platform"), Stage II (FY3/24–FY3/26, "core stage for reform into a highly efficient business structure"), and Stage III (FY3/27–FY3/30), published 14 May 2026.

Stage II scorecard (company self-assessment): Net profit target JPY 17.0 billion exceeded (JPY 18.27 billion); total return ratio ≥50% achieved; ROS 9.8% (target ≥10%, missed narrowly); ROA 5.0% (target ≥7%, missed); ROE 9.3% (target ≥10%, missed). Achievements: growth-driver expansion (HPC, NISSO-PB), unprofitable business liquidation, cross-shareholding reduction. Shortfall: Agri Business (post-COVID environment, delayed registrations in North America and Europe).

Stage III basic objectives (company themes, paraphrased)

Transform into a business portfolio that generates stable earnings through expansion of high-value-added businesses and creation of new value/solutions through new businesses.
Improve capital efficiency through structural reform, asset-efficiency-focused growth investment, and shareholder returns.

Stage III KPIs and capital allocation (FY3/27–FY3/30)

Management acknowledges ROE may dip temporarily as investment expands, with full investment payoff expected after 2030.

Strategic initiatives (last 24 months)

Management guidance (FY3/27, announced 14 May 2026; unchanged at Q1)

Products & Services

Chemical Materials

Agri Business

Trading & Logistics; Engineering; Eco Solutions

Pricing models are not publicly disclosed for any product line.

Product Portfolio

Product / brand	Category	Description & key properties	Target customers	Status / latest developments
Caustic soda, liquid chlorine, hydrochloric acid	Industrial chemicals	Chlor-alkali basics from Nihongi electrolysis	Domestic industrial users	Caustic soda volumes declining (FY3/26); synthetic HCl grew
Phosphorus oxychloride, phosphorus trichloride	Industrial chemicals	Phosphorus chlorides for agrochem/pharma/flame-retardant synthesis	Chemical manufacturers	Ongoing; sales decreased H1 FY3/26
Sodium cyanide, potassium cyanide, DAMN	Industrial chemicals	Produced at Mizushima since 1969	Gold mining, plating, chemicals	Discontinued with FY3/26; Mizushima closed April 2026
Metallic sodium derivatives, alcoholates (e.g., sodium methoxide), specialty isocyanates, organic titanium	Chemical products	Reactive intermediates and catalysts	Pharma, agrochem, polymer producers	Ongoing
Thermal-paper color developers (non-phenolic)	Chemical products	Phenol-free developers replacing BPA/BPS-type products	Thermal paper makers	Growing; phenol-based lines terminated under Stage II
Secondary battery materials	Chemical products	Battery-related specialty chemicals (details not disclosed)	Battery materials makers	Ongoing
NISSO-PB	Functional materials	Liquid polybutadiene via living anionic polymerization; high 1,2-vinyl content, high reactivity, storage stability; water/chemical resistance, low dielectric, heat resistance	CCL makers (AI servers, next-gen telecom), adhesives, paints, resin modifiers	AI-server demand drove Q1 FY3/27 growth; new flame-retardant and high-heat grades and a "main resin" high-performance grade under development
1,2-SBS	Functional materials	Styrene-butadiene-styrene with higher 1,2-vinyl content; low dielectric, heat resistance, Cu-foil adhesion	Next-gen telecom/AI CCL	Expansion targeted under Stage III
VP-POLYMER	Functional materials	KrF photoresist polymer (polyhydroxystyrene-type) made with proprietary polymerization	Photoresist makers (HBM, automotive and conventional memory)	Capacity doubled March 2025 (JPY 2.5 bn)
TITABOND	Functional materials	Organic titanate adhesion promoters/primers	Coatings, adhesives	Ongoing
TAKE-ONE, HIDION, slime removers, NISSO MELSAN	Eco-care products	Sanitation and cleaning chemicals	Consumer/institutional	HIDION grew FY3/26
BISTRATOR	Eco-care products	Photocatalytic coating agent	Building/sanitation	Sales declined FY3/26
NISSO HI-CHLON / High-Test Hypochlorite	Eco-care	Calcium hypochlorite disinfectant/water treatment	Pools, water treatment	Discontinued (production terminated; sales ended FY3/26)
NISSO HPC	Pharmaceuticals	Hydroxypropyl cellulose excipient: high binding strength, moisture resistance, sustained release; soluble in both water and alcohol; very high entry barriers due to quality management	Global pharma (innovator and generic), supplements, food/personal care thickeners	Capacity +50% at Nihongi (JPY 10 bn) online July 2026; CTAC Japan (Ichihara, 2019) and CTAC EU (Düsseldorf, Feb 2026); direct sales in India from April 2026; first cellulose derivative in Japan with SuMPO EPD certification; company index shows sales ~5.9x FY3/01 level by FY3/25 with further growth forecast to FY3/30
NISSO SSF	Pharmaceuticals	Sodium stearyl fumarate tablet lubricant; acquired from Maruzen Yuka Shoji in 2020 (sole Japanese producer)	Pharma formulators	Cross-sold via HPC channels
Faropenem sodium	Pharmaceuticals	Oral penem antibiotic API	Pharma companies	API sales rose FY3/26, fell in Q1 FY3/27
BESTCIDE, BIOCUT, MILLCUT, NISSOCOAT	Industrial fungicides	Industrial biocides/anti-mold agents	Paper, paints, industrial users	Ongoing
TADF emitters (with Kyulux)	New business (ICT)	Rare-metal-free thermally activated delayed fluorescence OLED emitters	OLED panel makers	Production start targeted 2027; dedicated mass-production plant and full-scale output targeted 2028
Animal health products	New business (Healthcare)	Supplements, feed and veterinary pharmaceuticals; collaborations with KAICO (silkworm protein expression), MabGenesis (canine/feline monoclonal antibodies), SENTAN Pharma (nano/micro-particle formulation)	Pet and livestock health markets	First product launch planned in 2026 (launch not confirmed in sources reviewed as of October 2026)

Product	Type	Description / positioning	Status
MOSPILAN (acetamiprid; marketed as Assail in some markets)	Insecticide	Neonicotinoid with low impact on beneficial insects; per the company, the only product in its class to clear EU re-registration, gaining share as competitors lost registrations	Mainstay; export sales grew Q1 FY3/27; registration extended in Japan against the invasive red-necked longhorn beetle
TOPSIN-M (thiophanate-methyl)	Fungicide	Long-established, high-safety benzimidazole fungicide; defended against generics via mixtures	Mainstay; export growth Q1 FY3/27
PANCHO (cyflufenamid)	Fungicide	Strong powdery-mildew efficacy	Sales launch in China via strategic alliance with a local maker; expanding in Europe/Oceania
PYTHILOCK (picarbutrazox)	Fungicide	New mode of action against oomycetes; effective on resistant strains	Growth product: North American seed treatment, Asian development, European launch
DANYOTE (acynonapyr)	Acaricide	New mode of action, fast-acting on resistant spider mites	Growth product: Japan, Korea, Asia expansion
MIGIWA (ipflufenoquin)	Fungicide	New mode of action, broad crop/disease spectrum; mass-production plant (JPY 5.5 bn) completed in Stage I	Growth product: US and Brazil sales; EU registration pending
NISSORUN (hexythiazox)	Acaricide	Established mite growth regulator	Export sales declined Q1 FY3/27
BEFRAN, BELLKUTE (iminoctadine), TRIFMINE (triflumizole), AGRI-MYCIN, FANTASISTA, MONSIEUR BORDEAUX, LABILITE	Fungicides	Domestic/export fungicide portfolio	Ongoing
MASTERPIECE, AGROCARE	Biological fungicides	MASTERPIECE holds the top domestic share in biological fungicides for fruits/vegetables (company claim); suited to JAS reduced-/no-pesticide cultivation	IPM strategy
ROMDAN, GREENGUARD, KOTETSU, PHOENIX, MATSU GREEN	Insecticides	Includes forest-protection lines from the Zoetis Plant Health acquisition	Ongoing
NABU (sethoxydim), TOPMERIT, CONCLUDE, ALPHARD	Herbicides	Grass and broadleaf herbicides	~JPY 3.3 bn sales FY3/26
Greenhouse smoking agents (Shinfuji Kaseiyaku)	Fumigants	Large share of agricultural smoke-agent market; labor-saving	Ongoing
NI-40	Pipeline insecticide	New mode of action, broad spectrum	Domestic registration filing planned within Stage III; trial costs lifting FY3/27 R&D
NR-44	Pipeline biological pesticide	Usable up to immediately before harvest	Domestic and overseas filings planned within Stage III

Offering	Segment	Description	Developments
Chemical, resin, functional products trading (Nisso Shoji)	Trading & Logistics	Domestic distribution, import/export; four strategic fields (agriculture, healthcare, environment, ICT)	Overseas expansion centred on India/Asia; three-country trade
Infrastructure reinforcement materials	Trading & Logistics	Road/bridge reinforcement construction	Entered 2025; scaling
PANOLA	Trading & Logistics	Flame-retardant fiber adopted in small Li-ion batteries	Expanding to medium/large LiBs
NYBRINE	Trading & Logistics	Heat-transfer medium	New data-center applications
Warehousing and trucking (Sanwa Soko, Sanso Unyu)	Trading & Logistics	Hazardous, toxic and pharmaceutical logistics; customs, insurance agency	Automated temperature-controlled pharma/hazmat warehouses; pharma/hazmat area to rise from ~25k m² to ~34k m², general area from ~44k to ~51k m² by FY3/30 (chart reading)
Plant EPC (Nisso Engineering)	Engineering	Fine-chemical EPC: powder handling, GMP/validation, reaction/distillation; milli-reactors and flow synthesis	Focus on life sciences, ICT, environment
Civil works, concrete products (Nisso Kensetsu)	Engineering	Design/construction, land development, quarrying	Ongoing
Waste treatment / environmental development	Eco Solutions	Difficult-waste treatment incl. fluorocarbon destruction	Monetization of waste
Zinc recovery, BERIC and A-1 alloys	Eco Solutions	Zinc from EAF dust; BERIC high-strength wear-resistant zinc alloy; A-1 high-zinc aluminum alloy	Proprietary product push
NISSO SULFAN; waste sulfuric acid recycling	Eco Solutions	Only waste-sulfuric-acid recycling facility in eastern Japan; NISSO SULFAN is the only sulfuric anhydride made/sold in Japan (company claims)	New business: recycling semiconductor-cleaning sulfuric acid

Financial Narrative

Income statement (JPY million)

Sources: Yuho FY3/26 (sales, ordinary profit, net profit); Stage III plan and FY3/26 results (OP, cost of sales, SG&A); S&P Global via StockAnalysis (EBITDA, equity-method income, taxes, pre-tax). FY3/21 net sales: JPY 139,363 m.

Per-share data (JPY; split-adjusted)

No dilutive instruments are outstanding (diluted EPS equals basic). Sources: Yuho FY3/26; Stage III plan KPIs; Q1 FY3/27 deck. Note: Envalith reports a 75.6% payout for FY3/25 computed on a mixed pre/post-split basis (JPY 120 interim pre-split + JPY 80 year-end post-split); the company's split-adjusted figure is 51.4%.

Margins and growth (%)

Revenue CAGR: FY3/21–FY3/26 (5 years): +1.8% p.a. (JPY 139.4 bn → 152.1 bn). FY3/22–FY3/26 (4 years): −0.1% p.a. Net profit CAGR FY3/21–FY3/26: +19.9% p.a. (JPY 7.36 bn → 18.27 bn).

Balance sheet (JPY million; fiscal year-end)

Sources: S&P Global via StockAnalysis (line items); company interest-bearing debt and working capital from Stage III plan (JPY bn ×1000, rounded); Yuho (net assets, total assets). Discrepancy: company interest-bearing debt slightly exceeds S&P "total debt" in FY3/22–FY3/24, likely due to lease obligations or classification differences. Equity ratio computed as shareholders' equity / total assets. At 30 June 2026: total assets JPY 320,233 m; total debt JPY 55,852 m; net assets JPY 212,583 m.

Cash flow (JPY million)

Source: S&P Global via StockAnalysis. Company-reported capital investment (accrual basis, JPY bn): 13.11, 13.26, 7.48, 10.31, 10.71 for FY3/22–FY3/26 — differs from cash capex due to timing (e.g., FY3/25 cash capex JPY 17.6 bn included payments for HPC/VP-POLYMER projects).

Ratios

DSO/DIO/DPO/CCC computed from year-end balances (S&P data) and are analytical estimates; company reports inventory turnover (sales/inventory) of 2.0x for FY3/26 and targets 4.0x by FY3/30. Interest expense from S&P (JPY m: 279, 297, 281, 425, 667).

Commentary on trends, inflections and drivers

Revenue: stagnant top line, improving quality. Net sales have oscillated around JPY 152–155 billion except for the FY3/23 spike (JPY 172.8 billion), which was inflated by Alkaline S.A.S. consolidation, high caustic soda prices and pre-emptive agrochemical buying after COVID-era logistics disruption. The FY3/24 decline (−10.6%) combined Alkaline's deconsolidation with European agrochemical destocking. The stable top line since then masks portfolio pruning: about JPY 2.38 billion of FY3/26 sales came from products discontinued with that year (sodium cyanide, NISSO HI-CHLON and others, per Q1 FY3/27 deck).

Profitability: a structural step-up in gross margin. Gross margin has risen from 27.6% to 29.6% over four years, reflecting exit from commodity lines and growth of HPC, NISSO-PB and VP-POLYMER. Operating margin has nonetheless plateaued at ~10% because SG&A rose (R&D grew from JPY 5.8 billion to JPY 7.1 billion) and Agri remained sub-par.

Below-the-line volatility. Net profit in FY3/26 (record JPY 18.27 billion) was flattered by three non-operating items: equity-method income of JPY 6.06 billion (Iharabras FX gains on USD-denominated liabilities as the real strengthened; Iharabras contribution JPY 5.38 billion vs JPY 2.58 billion), FX gains of JPY 1.22 billion, and gains on sales of cross-shareholdings of JPY 5.07 billion. Management's FY3/27 guidance explicitly assumes reversal of these (net profit −13.5%).

Balance sheet: conservative but lazy. Equity has grown from JPY 158 billion to JPY 206 billion, and the equity ratio is ~67%. ROE has hovered at 8–10%, below the 10% KPI in three of five years. Investment securities (largely cross-shareholdings and equity-method stakes) rose to ~JPY 101 billion, partly from mark-to-market gains; the company targets reducing cross-shareholdings to less than 6% of net assets by FY3/30 (11.4% at March 2026) — listed holdings already cut from 31 to 19 issues between March 2023 and March 2026.

Working capital is the key inefficiency. Inventory rose from JPY 34.9 billion (FY3/22) to ~JPY 53 billion, pushing the computed cash conversion cycle from ~170 to ~238 days; inventory turnover fell from 3.3x to 2.0x. The Stage III target of 4.0x inventory turnover implies a potential release of roughly JPY 25 billion of cash if sales stay flat — a material lever for returns.

Cash generation recovered. FCF swung from −JPY 4.2 billion (FY3/24, inventory build) to +JPY 10.5 billion (FY3/26) as inventory stabilized and receivables fell. Debt has risen modestly (JPY 52.3 billion) to fund growth capex and returns; leverage remains low (net debt/EBITDA ~1.2x).

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Financial Detail

Segment Overview

Segment	Contents	Key entities	Representative products/services
Chemical Materials	Industrial Chemicals; Chemical Products (fine chemicals); Functional Materials (specialty); Eco-Care Products; Pharmaceuticals & Industrial Fungicides	Nippon Soda (parent), Nisso Fine, Nisso America, Nisso Chemical Europe	Caustic soda, liquid chlorine, HCl, phosphorus oxychloride/trichloride; metallic sodium derivatives, specialty isocyanates, alcoholates, organic titanates, thermal-paper color developers, battery materials; NISSO-PB, VP-POLYMER, 1,2-SBS, TITABOND; TAKE-ONE, HIDION, slime removers, BISTRATOR; NISSO HPC, faropenem sodium, NISSO SSF, BESTCIDE, BIOCUT, MILLCUT, NISSOCOAT
Agri Business	Fungicides, insecticides/acaricides, herbicides, fumigants	Parent, Shinfuji Kaseiyaku, Nisso Fine, Nisso Green (merged Oct 2026), Nisso Namhae Agro, Nisso America, Nisso Chemical Europe	TOPSIN-M, MOSPILAN, NISSORUN, PANCHO, PYTHILOCK, DANYOTE, MIGIWA, etc.
Trading & Logistics	Trading of chemicals, functional products, resins, industrial devices, construction products; warehousing and transport	Nisso Shoji, Sanwa Soko, Sanso Unyu	Hazardous/pharma logistics, customs brokerage, PANOLA fiber, NYBRINE heat-transfer medium
Engineering	Plant EPC; civil engineering and construction	Nisso Engineering, Nisso Kensetsu	GMP pharma plants, powder handling, milli-reactors, flow synthesis
Eco Solutions	Waste treatment, non-ferrous metals recycling, sulfuric acid recycling	Nisso Metallochemical	Zinc recovery from EAF dust, BERIC zinc alloy, A-1 Al alloy, NISSO SULFAN

Segment Net Sales (JPY Bn)

Segment Net Sales (JPY Bn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Chemical Materials	45.4	48.8	36.1	36.4	37.4
Agri Business	50.6	58.8	53.0	53.6	52.5
Trading & Logistics	40.2	43.6	40.9	42.8	43.8
Engineering	8.2	13.1	16.3	13.1	8.5
Eco Solutions	8.2	8.6	8.1	9.2	9.9
Total	152.5	172.8	154.4	155.2	152.1

Segment Operating Profit (JPY Bn)

Segment Operating Profit (JPY Bn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Chemical Materials	2.7	2.9	3.1	6.1	5.7
Agri Business	5.5	9.5	6.7	5.1	5.5
Trading & Logistics	1.9	2.2	2.2	2.4	2.3
Engineering	1.1	1.9	1.7	2.4	1.1
Eco Solutions	0.8	0.5	0.2	0.1	0.5

Segment Operating Margin (%)

Segment Operating Margin (%)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Chemical Materials	5.9	6.0	8.6	16.7	15.3
Agri Business	10.9	16.1	12.6	9.5	10.4
Trading & Logistics	4.6	5.0	5.2	5.6	5.2
Engineering	13.9	14.5	10.6	18.0	13.4
Eco Solutions	10.2	5.6	2.0	1.1	5.4

Segment Metric Details

Segment Metric (JPY 100m)	FY3/24	FY3/25	FY3/26
Chemical Materials Sales	360.6	364.4	374.1
Chemical Materials OP	30.8	60.7	57.2
Agri Business Sales	530.4	535.9	525.0
Agri Business OP	66.7	51.2	54.9
Trading & Logistics Sales	409.0	428.2	438.1
Trading & Logistics OP	22.0	24.2	22.7
Engineering Sales	163.4	131.4	85.2
Engineering OP	17.0	23.7	11.4
Eco Solutions Sales	80.9	92.1	98.6
Eco Solutions OP	2.0	1.0	5.3
Adjustments OP	0.2	-0.1	-1.8
Consolidated Sales	1,544.3	1,552.0	1,520.9
Consolidated OP	138.7	160.6	149.7

Segment Overview — Chemical Materials

Segment	FY3/26 Sales YoY (%)	FY3/25 Sales YoY (%)	FY3/26 OP YoY (%)	% of FY3/26 Consolidated Sales
Chemical Materials	2.7	1.1	-5.8	24.6
Agri Business	-2.0	1.0	7.2	34.5
Trading & Logistics	2.3	4.7	-6.2	28.8
Engineering	-35.2	-19.6	-51.9	5.6
Eco Solutions	7.1	13.8	430.0	6.5

Chemical Materials Sub-category Details

Chemical Materials Sub-category (JPY Bn)	FY3/23	FY3/24	FY3/25	FY3/26
Industrial chemicals	11.94	11.31	10.45	9.26
Fine chemicals (Chemical Products)	10.74	9.23	10.77	11.65
Specialty chemicals (Functional Materials)	7.05	6.49	7.32	8.21
Eco-business (Eco-Care Products)	5.14	5.58	5.64	4.69
Pharmaceuticals & industrial fungicides	11.15	11.53	13.06	14.71
Subsidiaries sales and eliminations	2.77	-8.08	-10.81	-11.11
Agri Business Sub-category (JPY Bn)	FY3/23	FY3/24	FY3/25	FY3/26
Fungicides	24.14	23.94	24.44	23.23
Insecticides and acaricides	24.21	22.52	17.36	18.85
Herbicides	3.30	3.18	3.46	3.28
Others (fumigants)	-0.25	-0.40	-0.30	-0.27
Subsidiaries sales and eliminations	7.35	3.80	8.63	7.41

Income Statement (JPY Mn)

Income Statement (JPY Mn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Net sales	152,536	172,811	154,429	155,199	152,091
Cost of sales	110,430	123,533	111,729	110,264	107,064
Gross profit	42,106	49,278	42,700	44,935	45,027
SG&A incl. R&D	30,174	32,384	28,827	28,871	30,056
Operating profit	11,930	16,893	13,872	16,063	14,970
Equity-method income	3,063	7,841	6,319	2,701	6,055
Ordinary profit	16,512	26,456	23,297	19,529	22,990
EBITDA (OP plus D&A)	20,539	26,002	21,745	23,926	23,149
Profit before income taxes	17,455	24,217	21,338	20,265	24,732
Income taxes	4,438	7,293	4,634	5,138	6,404
Net profit attributable to owners	12,683	16,692	16,612	15,011	18,271

Per-Share (JPY)

Per-Share (JPY)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
EPS basic	227.19	299.39	298.71	272.56	336.54
EPS diluted	227.19	299.39	298.71	272.56	336.54
Dividend per share	90	120	120	140	160
Book value per share	2,798.51	3,035.05	3,414.78	3,391.15	3,820.43
Payout ratio (%)	39.6	40.1	40.2	51.4	47.5
Total return ratio (%)	49.3	40.1	52.1	51.4	74.6

Margin / Growth (%)

Margin / Growth (%)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Gross margin	27.6	28.5	27.7	29.0	29.6
Operating margin (ROS)	7.8	9.8	9.0	10.4	9.8
EBITDA margin	13.5	15.0	14.1	15.4	15.2
Net margin	8.3	9.7	10.8	9.7	12.0
Revenue growth YoY	9.5	13.3	-10.6	0.5	-2.0
Net profit growth YoY	72.3	31.6	-0.5	-9.6	21.7

Balance Sheet Details

Balance Sheet (JPY Mn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Total assets	245,585	251,350	290,492	288,097	307,305
Cash and equivalents	17,936	18,506	22,215	22,267	24,626
Trade receivables	52,497	48,777	55,015	50,129	44,142
Inventories	34,861	43,970	51,729	53,419	52,962
Trade payables	21,322	19,400	22,549	20,725	14,165
Short-term debt incl. current LTD	22,572	15,395	23,795	26,913	18,617
Long-term debt	16,414	16,943	25,118	23,325	33,653
Total debt (S&P basis)	38,986	32,338	48,913	50,238	52,270
Interest-bearing debt (company basis)	40,200	32,400	49,000	50,300	52,300
Net debt (S&P basis)	21,050	13,832	26,698	27,971	27,644
Net assets (total equity)	158,298	170,959	189,474	188,102	206,094
Shareholders' equity (excl. NCI)	155,943	169,256	188,047	186,784	204,779
Goodwill and intangibles	4,969	3,994	3,706	2,763	1,998
Investment securities and LT investments	61,101	68,491	87,404	80,383	100,756
Working capital (current assets minus current liabilities)	51,727	64,004	73,895	67,733	76,550
Company trade working capital (receivables plus inventory minus payables)	66,050	73,350	84,200	82,830	82,950
Equity ratio (%)	63.5	67.3	64.7	64.8	66.6

Cash Flow (JPY Mn)

Cash Flow (JPY Mn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Operating cash flow	14,545	15,590	5,729	22,636	21,594
Capital expenditure (PP&E)	11,357	10,878	9,921	17,605	11,079
Free cash flow (OCF minus capex)	3,188	4,712	-4,192	5,031	10,515
Dividends paid	3,504	5,979	7,505	6,598	8,193
Share buybacks	1,236	3	2,007	2	5,009
Depreciation and amortization	8,607	9,108	7,872	7,862	8,178
Net debt issued (repaid)	1,222	-3,718	16,575	1,325	2,032

Financial Analysis

Ratio	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
ROE (%) company	8.4	10.3	9.3	8.0	9.3
ROA (%) operating profit on assets, company	5.0	6.8	5.1	5.6	5.0
ROA (%) net profit on average assets, computed	5.4	6.7	6.1	5.2	6.1
Pre-tax ROIC (%) company	5.9	8.0	5.8	6.7	5.7
Current ratio (x)	1.90	2.26	2.23	2.09	2.57
Debt/equity (x) company	0.26	0.19	0.26	0.27	0.26
Net debt/EBITDA (x)	1.02	0.53	1.23	1.17	1.19
Interest coverage (OP/interest expense, x)	42.8	56.9	49.4	37.8	22.4
Asset turnover (sales/average assets, x)	0.64	0.70	0.57	0.54	0.51
DSO (days)	125.6	103.0	130.0	117.9	105.9
DIO (days)	115.2	129.9	169.0	176.8	180.6
DPO (days)	70.5	57.3	73.7	68.6	48.3
Cash conversion cycle (days)	170.3	175.6	225.3	226.1	238.2
Inventory turnover (x) company	3.3	3.1	2.3	2.1	2.0

Region Revenue (JPY Mn)

Region Revenue (JPY Mn)	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26
Japan	92,791	100,547	101,428	98,871	93,087
Europe	27,377	31,945	19,290	19,427	22,848
Asia	15,228	18,455	17,901	18,768	19,836
North America	12,016	13,907	7,910	10,930	11,186
Other regions	5,122	7,954	7,898	7,202	5,132
Overseas sales ratio (%)	39.2	41.8	34.3	36.3	38.8

Region Growth YoY (%)

Region Growth YoY (%)	FY3/24	FY3/25	FY3/26
Japan	0.9	-2.5	-5.9
Europe	-39.6	0.7	17.6
Asia	-3.0	4.8	5.7
North America	-43.1	38.2	2.3
Other regions	-0.7	-8.8	-28.7

Share Price History

Date	Price (JPY)	Source
21 Jul 2026	3,740	StockAnalysis
24 Jul 2026	3,810	StockAnalysis/Kabuyoho
18 Aug 2026	3,965	StockAnalysis
10 Sep 2026	3,805	StockAnalysis
17 Sep 2026	3,910	StockAnalysis
~2 Oct 2026	~3660 (implied by 4.37% yield on JPY 160 DPS)	Yahoo! Finance Japan

Valuation Multiples

Multiple	Nippon Soda
P/E (trailing)	10.9
P/E (forward)	12.2
P/B	0.95
EV/EBITDA	7.7
EV/Sales	1.48
P/FCF	18.7
Dividend yield (%)	4.37
Shareholder yield incl. buybacks (%)	5.79

Dividend

Dividend	FY3/18	FY3/19	FY3/20	FY3/21	FY3/22	FY3/23	FY3/24	FY3/25	FY3/26	FY3/27F
DPS (JPY)	30	30	40	55	90	120	120	140	160	160

Amount by Period

Period	Amount (JPY Bn)	Notes
Feb 2020 – Oct 2020	5.0	All cancelled
Feb 2021 – Jun 2021	2.0	All cancelled
Nov 2023 – Mar 2024	2.0	All cancelled
May 2025 – Jan 2026	5.0	Up to 2.5M shares; all cancelled

Analyst Conclusions

Management guidance

FY3/27: sales JPY 152.2 bn (flat), OP JPY 14.2 bn (−5.1%), net profit JPY 15.8 bn (−13.5%), DPS JPY 160. Segment guidance: Chemical Materials OP +15.4% to JPY 6.6 bn despite sales −5.6% (discontinued products); Agri OP −18% to JPY 4.5 bn (lower inventory valuation gains, South American price pressure, higher R&D); Engineering OP +31.5%. Q1 FY3/27 delivered OP of JPY 3.73 bn (+18.3%) versus H1 guidance of JPY 5.9 bn — 63% achieved in the first quarter, with the JPY trading at ~JPY 159/USD versus a JPY 150 assumption, suggesting upside risk to H1 guidance (review due November 2026).

Consensus

Thin coverage (two analysts, Hold, TP JPY 3,900). Forward P/E ~12x on company guidance.

Bull case

Specialty mix re-rating: HPC (+50% capacity), NISSO-PB (AI CCL) and VP-POLYMER (HBM) are on track to lift high-value-added sales 50% by FY3/30, structurally pushing Chemical Materials margins above 15%.
Agri cyclical recovery plus new AIs: European channel normalization and growth products (Pythilock, Danyote, Migiwa) drove Agri Q1 sales +21.8%; a return to FY3/23-like margins (16%) would add several billion yen of OP.
Capital efficiency unlock: Inventory turnover to 4.0x and cross-shareholding sales could release >JPY 30 bn, funding buybacks and pushing ROE above 10% at a P/B below 1x.

Bear case

Earnings quality: FY3/26 record profit relied on non-recurring securities gains and FX-driven equity income; guidance already implies a 13.5% net profit decline.
Generic erosion and regulatory risk: mature AIs (acetamiprid, thiophanate-methyl, hexythiazox) face Chinese/Indian generics and potential neonicotinoid restrictions.
Investment ROI risk: Stage III doubles R&D (JPY 35 bn) and commits JPY 30 bn to growth with new businesses (TADF, Animal Health) yet to show revenue; ROE may dip in the interim.

Catalysts and monitorables (next 12 months)

H1 FY3/27 results and full-year forecast revision (November 2026).
HPC ramp-up utilization and India/Europe sales traction.
First Animal Health product launch (planned 2026).
Kyulux/TADF production start preparations (2027).
EU registration of MIGIWA; NI-40 filing progress.
New buyback authorization and cross-shareholding sales.
BRL/USD and JPY moves (Iharabras equity income; export margins).
Middle East-related energy/logistics disruption.

Analyst verdict

Nippon Soda is a well-capitalized, quietly improving specialty chemical company trapped in a low-growth, low-valuation equilibrium. Its five-year record shows genuine portfolio progress: commodity and loss-making businesses have been exited, Chemical Materials margins have roughly tripled, and the company has invested ahead of structural demand in pharmaceutical excipients and AI-related electronics materials. Shareholder returns have been strong, with dividends up 78% since FY3/22 and a 74.6% total return ratio in FY3/26. Yet the headline numbers flatter the underlying trajectory. Consolidated sales have not grown meaningfully since FY3/22, operating profit has stalled around JPY 15–16 billion, and recent record net income leaned on securities gains and Brazilian FX effects that management itself expects to reverse. The Agri Business — the largest segment — remains the swing factor, exposed to channel cycles, generics and regulation. Working capital discipline has been weak, with inventories up ~50% in four years. Stage III is credible in direction but demanding in execution. The JPY 20 billion net income target for FY3/30 implies ~9% growth from FY3/27 guidance and depends on (i) HPC capacity filling, (ii) NISSO-PB/VP-POLYMER riding the AI cycle, (iii) Agri growth products scaling, and (iv) new businesses contributing JPY 10 billion of sales from essentially zero. The doubling of R&D spending will weigh on near-term margins. At ~0.95x book, ~12x forward earnings and a ~4.4% dividend yield, with net debt of only ~1.2x EBITDA, valuation discounts much of the execution risk; downside is cushioned by the progressive dividend and balance-sheet optionality. The stock is best viewed as a value-with-catalysts holding: upside requires visible delivery on inventory reduction, Agri recovery and specialty volumes, with the November 2026 interim results the next test. Balanced risk-reward; a neutral-to-positive stance is warranted, contingent on evidence that Stage III's capital-efficiency commitments translate into ROE sustainably above 10%.

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Executive Leadership

Executive Leadership Team

Name	Title	Tenure / career	Age
Eiji Aga	President and Representative Director	Joined 1985; Group Leader, Chemicals Div. (2010); seconded as EVP, Alkaline S.A.S. (2012); GM Planning & Admin, Chemicals Div. (2015); Executive Officer & GM Chemicals Div. (2017); Director & EO in charge of sales, HR, purchasing/logistics (Jun 2020); President since Apr 2021 (oversaw new business development 2022–23 and sales 2023–24)	~63 (age 58 at appointment, per the-shashi.com)
Atsuhiro Seshimo	Director, Senior Executive Officer; Head of Technology, Risk Management Dept., Production Division GM, Trade Control Office GM	Joined 1989; Nihongi Plant production technology lab head (2018); EO (2022); Takaoka Plant Manager (2023); Senior EO, Production Division GM (Apr 2025); Director (Jun 2025); current role from Jun 2026	—
Hayato Yoshida	Director, Audit & Supervisory Committee Member	Per Yuho listing (SalesNow DB)	—
Osamu Sasabe	Managing Executive Officer (Corporate Planning, Digital Promotion, Purchasing/Logistics; President of NS Business Support) — as of June 2023	—	—
Osamu Shimizu	Executive Officer (Administration, CSR; designated President of Nisso Namhae Agro) — as of June 2023	—	—
Shinji Nagao	Officer (Riji), General Manager, Accounting Department	Contact officer on Yuho FY3/26	—

“—” = not publicly disclosed.

Board & Management Changes

Date	Change	Context
Apr 2015	Akira Ishii appointed President	Succeeded Hiroshi Kinebuchi
Apr 2021	Eiji Aga appointed President; Ishii becomes Chairman	Generational transition; start of long-term vision
Jun 2023	Ishii retires as Representative Director/Chairman, becomes Advisor	Term expiry and management restructuring (TSE disclosure 24 Feb 2023)
Apr 2025	Aga relinquishes direct sales oversight	Focus on overall management
Jun 2025	Atsuhiro Seshimo elected Director	Technology/production leadership
Jun 2026	Seshimo adds Risk Management responsibilities	Post-AGM role update

Major Shareholders

Rank	Shareholder	Shares (thousand)	% of shares outstanding (ex-treasury)
1	The Master Trust Bank of Japan (trust account)	6,514	12.13
2	Custody Bank of Japan (trust account)	3,834	7.14
3	Nippon Soda Business Partners' Shareholding Association	2,119	3.95
4	Mitsui & Co., Ltd.	2,030	3.78
5	Mizuho Bank, Ltd.	1,633	3.04
6	The Norinchukin Bank	1,555	2.90
7	The Chase Manhattan Bank, N.A. London SECS Lending Omnibus	1,156	2.15
8	DFA International Small Cap Value Portfolio	881	1.64
9	Tokio Marine & Nichido Fire Insurance	873	1.63
10	Custody Bank of Japan (trust account 4)	803	1.50

Competitive Landscape

Competitors by Segment

Segment / product	Named competitors	Notes
Agrochemicals (R&D-based)	Syngenta Group, Bayer Crop Science, Corteva, BASF Agricultural Solutions, FMC (the "five overseas majors" referenced by the company in substance)	Global scale players
Agrochemicals (Japanese originators)	Kumiai Chemical Industry (4996), Nihon Nohyaku (4997), Ishihara Sangyo Kaisha (4028), Sumitomo Chemical, Mitsui Chemicals Crop & Life Solutions, Hokko Chemical (4992)	Similar fruit/vegetable niche focus
Agrochemical generics	Chinese/Indian generic producers (e.g., UPL; numerous Chinese acetamiprid/thiophanate-methyl makers)	Price pressure, esp. South America
HPC / pharma excipients	Ashland (Klucel HPC), Shin-Etsu Chemical (cellulose ethers, L-HPC), Colorcon, Roquette (pharma solutions)	HPC is an oligopolistic, high-barrier niche
Liquid polybutadiene / CCL resins	Cray Valley (TotalEnergies), Evonik (POLYVEST), Kuraray	Company notes several suppliers with differing properties
Chlor-alkali	Tosoh, Tokuyama, Kanto Denka Kogyo, Osaka Soda, Toagosei, AGC	Commodity
Engineering	Fine-chemical EPC firms (e.g., subsidiaries of chemical majors)	Fragmented

Peer Comparison FY2010

Metric	Nippon Soda (FY3/26)	Kumiai Chemical (FY10/25)
Revenue (JPY Bn)	152.1	170.5
Revenue growth YoY (%)	-2.0	5.8
Operating margin (%)	9.8	6.2
Net profit (JPY Bn)	18.3	4.4
R&D intensity (% of sales)	4.7	—
Next-year OP guidance trend	-5.1%	-74.4% (FY10/26: JPY 2.7 bn)

Company Snapshot

$1,404.1M

Revenue

2,407

Employees

1920

Founded

Tokyo, Japan

Headquarters

SWOT Analysis

Strengths

Margin transformation in Chemical Materials: OP margin rose from 5.9% (FY3/22) to 15.3% (FY3/26) after exiting Alkaline, HI-CHLON and phenol-based developers (Stage III plan).
Balance-sheet strength: equity ratio ~66.6% and D/E 0.26x at March 2026; interest coverage ~22x (Yuho; S&P).
Proprietary AI pipeline: three new-mode-of-action AIs (PYTHILOCK, DANYOTE, MIGIWA) in global rollout, plus NI-40 and NR-44 in development.
Regulatory moat: Mospilan's unique EU re-registration status within its class (Stage III plan).
Growth-capacity in place: VP-POLYMER doubled (Mar 2025) and HPC +50% (Jul 2026), totaling JPY 12.5 bn of investment.
Shareholder returns: DPS up from JPY 90 to JPY 160 in four years; total return ratio 74.6% in FY3/26.
Valuable equity-method stakes: Iharabras contributed JPY 5.38 bn in FY3/26.

Weaknesses

Stagnant revenue: five-year sales CAGR of only 1.8% (FY3/21–FY3/26).
Missed efficiency KPIs: ROA 5.0% vs ≥7% target; ROE 9.3% vs ≥10% (FY3/26).
Inventory bloat: inventory turnover 2.0x vs 3.3x in FY3/22; computed CCC ~238 days.
Earnings quality: FY3/26 net profit includes JPY 5.07 bn securities gains and JPY 6.06 bn equity income, which management expects to fall (FY3/27 net profit guidance −13.5%).
Agri underperformance: company concedes Agri fell short under Stage II; segment OP down from JPY 9.5 bn (FY3/23) to JPY 5.5 bn.
Limited disclosure of governance compensation, patents and product-level market shares.

Opportunities

AI/HBM demand for NISSO-PB, 1,2-SBS and VP-POLYMER (Q1 FY3/27 NISSO-PB AI-server sales up).
HPC global expansion into India (direct sales from Apr 2026) and Europe (CTAC EU).
New businesses targeting JPY 10 bn sales by FY3/30 and JPY 50 bn by FY3/36 (Animal Health, TADF).
Balance-sheet unlock: cutting cross-shareholdings from 11.4% to <6% of net assets and lifting inventory turnover to 4.0x.
IPM and biologicals after Nisso Green integration.
Competitor de-registrations in the EU benefiting Mospilan.

Threats

Generic price erosion, especially in South America (FY3/27 guidance).
FX volatility: H1 FY3/26 FX impact −JPY 1.72 bn on OP; equity-method income tied to BRL/USD.
Regulatory risk to neonicotinoids and other AIs in the EU and elsewhere.
Geopolitical/energy shocks: company flagged Middle East tensions in May 2026 guidance materials.
Raw-material supply fragility: Mizushima closure was forced by HCN feedstock unavailability.
Demographic pressure: declining Japanese working-age population (company planning for 10–20% headcount reduction).

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Product Offering

Nippon Soda Co., Ltd
- Liquid Polybutadiene Market

Financial Performance

Explore key financial metrics, segmented revenue, balance sheet health, and performance trends.

By Business Segment: Sales fell from USD 1,404.1 Mn in 2020 to USD 1,156.7 Mn in 2022.

Nippon Soda Co., Ltd — By Business Segment
Series (USD Mn)	2020	2021	2022
Sales	1,404.1	1,210.6	1,156.7

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About the Author

Wantstats Research Team

Wantstats' research desk profiles Nippon Soda Co., Ltd as part of our ongoing coverage of the Chemicals & Materials sector, drawing on public company data, filings, and market intelligence.

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