Nippon Paper Industries Reports Strong Earnings Growth in Q3 FY2026, Reaffirms Full-Year Outlook

Tokyo, February 6, 2026 – Nippon Paper Industries Co., Ltd. today announced its consolidated financial results for the third quarter of the fiscal year ending March 31, 2026 (Q3 FY2026). The company delivered a solid improvement in profitability, supported by recovery in overseas operations and continued growth in its Daily-Life Products business.

For the first nine months of FY2026, net sales reached ¥889.5 billion, representing a 0.4% year-on-year increase. Operating income rose sharply by 35.5% year on year to ¥15.0 billion, while ordinary income increased 9.0% to ¥14.0 billion. Profit attributable to owners of the parent company improved significantly to ¥7.8 billion, compared with near breakeven in the same period last year.

Business Highlights

• Daily-Life Products Business recorded strong growth, with net sales increasing to ¥360.4 billion and operating income improving by ¥11.1 billion year on year, driven by higher household paper demand, price adjustments, and a turnaround in overseas subsidiaries.

• Overseas operations showed a marked recovery as Opal reduced losses through operational efficiency improvements at the Maryvale Mill, and Nippon Dynawave Packaging (NDP) returned to normal operations following the completion of large-scale maintenance carried out in the previous fiscal year.

• Paper and Paperboard Business faced continued pressure, with net sales declining to ¥418.7 billion and operating income falling into a small loss, reflecting weak export markets, sluggish domestic demand, and higher labor and logistics costs.

Full-Year Forecast Maintained

Nippon Paper Industries reaffirmed its full-year FY2026 forecast, unchanged from the outlook released in November 2025. The company expects:

• Net sales: ¥1,200.0 billion

• Operating income: ¥30.0 billion

• Ordinary income: ¥24.0 billion

• Net income attributable to owners of parent: ¥10.0 billion

Profit growth is expected to be driven mainly by overseas Daily-Life Products operations and continued cost reduction efforts across the group.

Key Extracted Updates for Investors & Stakeholders

Shutdowns / Structural Measures

• Permanent shutdowns of production machines at the Shiraoi Mill and Yatsushiro Mill are reflected in both current results and forward-looking cost structures, contributing to cost reductions in the Paper and Paperboard Business.

Capital Expenditure

• Capital expenditure continues at a disciplined level, with FY2026 spending focused on efficiency improvements and ongoing projects (including construction in progress). Historical charts indicate capex levels broadly stable versus depreciation, supporting cash flow control.

Overseas Project Updates

• Opal (Australia): Improved operating efficiency at the Maryvale Mill significantly reduced losses.

• Nippon Dynawave Packaging (U.S.): Performance rebounded strongly following completion of prior-year large-scale maintenance, supported by higher sales volumes.

• TSP: Performance remained stable with no material change reported.

M&A / Divestments

• Extraordinary income during the period included gains on the sale of investment securities, including cross-shareholdings, indicating continued balance-sheet optimization. No new acquisitions or mergers were announced in this report.

Dividends

• No dividend changes were announced in this presentation.

Forward Strategy & Outlook

• The company continues to prioritize growth in Daily-Life Products, particularly overseas packaging and household paper.

• Ongoing cost-reduction initiatives, labor and logistics efficiency measures, and structural reforms remain central to restoring profitability in the Paper and Paperboard segment.

• Management reaffirmed confidence in achieving its full-year earnings targets despite a challenging demand environment.