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Asahi Kasei (3407) investor relations material

Asahi Kasei Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary31 Jul, 2025

Executive summary

  • Q1 2025 net sales rose 0.3% year-over-year to ¥738.3 billion, with operating income up 7.6% to ¥53.7 billion, but net income dropped 42.2% to ¥19.7 billion due to losses from discontinuation of the MMA business in Material.

  • H1 2025 forecasts were revised upward for both operating and net income, driven by strong performance in Pharmaceuticals & Life Science, despite a year-over-year decline in operating income.

  • Dividends for FY 2025 are forecasted to increase by ¥2 to ¥40 per share, reflecting a progressive dividend policy.

  • Ordinary income declined 7.0% to ¥49,957 million; comprehensive income was negative ¥7,386 million, compared to ¥122,838 million in Q1 2024.

Financial highlights

  • Q1 2025 operating income before goodwill amortization increased 6.7% year-over-year to ¥61.7 billion; EBITDA rose 7.2% to ¥100.9 billion.

  • Operating margin improved to 7.3% from 6.8% in Q1 2024; EBITDA margin increased to 13.7%.

  • Extraordinary losses surged to ¥36,429 million in Q1 2025, mainly from business structure improvement expenses and loss on cancellation of power contract.

  • Total assets decreased by ¥51.5 billion, mainly due to a stronger yen and business divestitures; assets at June 2025 were ¥3,963,757 million.

  • Net assets decreased to ¥1,877,998 million from ¥1,913,944 million at March 2025.

Outlook and guidance

  • H1 2025 net sales are projected at ¥1,504.0 billion (+0.9% year-over-year), with operating income at ¥105.0 billion (-3.6%) and net income at ¥61.0 billion (+1.2%).

  • Fiscal 2025 net sales forecast at ¥3,117,000 million, up 2.6% year-over-year; operating income projected at ¥215,000 million, up 1.5%; net income forecast at ¥125,000 million, down 7.4%.

  • Upward revision in operating income forecast (+¥10.0 billion vs. May) due to strong Pharmaceuticals & Life Science and cost controls in Material.

  • Interim dividend forecast is ¥20 per share, unchanged from previous guidance.

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Frequently asked questions

Asahi Kasei Corp is a diversified Japanese company operating in multiple sectors, primarily focused on materials, homes, and health care. In the materials segment, the company produces a wide range of chemical products including acrylonitrile, styrene, and various polymers, which are used in industries such as automotive, electronics, and construction. The homes segment involves the construction of residential homes and the supply of related materials like insulation panels and foundation systems. The health care segment provides medical devices, diagnostic reagents, and systems for acute critical care, including dialysis and transfusion equipment. Asahi Kasei Corp is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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