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Nippon Paper lifts profit and dividend but flags weaker earnings outlook

Story Highlights
  • Nippon Paper posted modest sales growth but sharply higher profits, stronger returns and cash flow for the year ended March 31, 2026.
  • The company raised its annual dividend to ¥15 per share yet forecasts lower profits for fiscal 2026, signaling a cautious earnings outlook.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nippon Paper lifts profit and dividend but flags weaker earnings outlook

Meet Samuel – Your Personal Investing Prophet

An update from Nippon Paper ( (JP:3863) ) is now available.

Nippon Paper Industries reported fiscal 2025 net sales of ¥1.19 trillion, up 0.9% year on year, with operating profit rising 27.9% to ¥25.2 billion and profit attributable to owners of parent surging 158.7% to ¥11.7 billion. Improved profitability lifted return on equity to 2.4%, while total assets increased to ¥1.74 trillion and the equity ratio edged up to 29.2%, supported by strong operating cash flow of ¥75.0 billion.

The company raised its annual dividend to ¥15 per share for the year ended March 31, 2026, from ¥10 the previous year, and plans to maintain this level in the current fiscal year, implying a payout ratio forecast of 17.3%. For the year to March 2027, Nippon Paper projects modest sales growth to ¥1.22 trillion but expects operating profit and net income to decline, signaling a cautious earnings outlook despite a firmer balance sheet and higher shareholder returns.

The most recent analyst rating on (JP:3863) stock is a Sell with a Yen1080.00 price target. To see the full list of analyst forecasts on Nippon Paper stock, see the JP:3863 Stock Forecast page.

More about Nippon Paper

Nippon Paper Industries is a major Japanese pulp and paper manufacturer listed on the Tokyo Stock Exchange, operating across printing, packaging, and related paper products. The group also extends into materials and energy-related businesses, positioning itself as a diversified player in the broader paper and forest-products value chain.

Average Trading Volume: 1,056,322

Technical Sentiment Signal: Buy

Current Market Cap: Yen170.5B

For an in-depth examination of 3863 stock, go to TipRanks’ Overview page.

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