Dowa Holdings (5714) investor relations material

Executive summary

• FY2025 Q3 net sales were ¥498.7B, down 3.6% year-over-year, with operating profit at ¥12.7B (down 50.4%) and ordinary profit at ¥21.9B (down 36.4%); profit attributable to owners was ¥18.6B, down 21.9%.

• Full-year forecasts were revised upward: net sales expected at ¥710.0B (+4.6% year-over-year), ordinary profit at ¥45.0B, and profit attributable to owners at ¥54.0B (+99%), reflecting extraordinary income from a share sale.

Financial highlights

• Q3 operating profit declined sharply due to derivative valuation losses and higher costs, despite higher metal prices and increased demand in some segments.

• Gross profit for the period was ¥54.4B, down from ¥66.3B year-over-year; basic EPS dropped to ¥311.85 from ¥399.58.

• Annual dividend forecast raised to ¥318 per share, including a ¥100 special dividend from share sale proceeds.

• Total assets increased to ¥774.1B as of December 31, 2025, from ¥673.5B at the previous fiscal year-end.

• Full-year profit attributable to owners is expected to nearly double, driven by a ¥23.0B extraordinary gain from the sale of FUJITA KANKO INC. shares.

Outlook and guidance

• Full-year net sales forecast is ¥710.0B, with profit attributable to owners at ¥54.0B and basic EPS at ¥906.71.

• Information and communication-related product sales are expected to exceed previous forecasts.

• Weaker yen and higher precious metal prices are anticipated for Q4, but derivative valuation gains/losses are excluded from Q4 forecasts.

• Sensitivity analysis: every ¥1/$ fluctuation impacts Q4 operating profit by ¥120M; copper and zinc price changes also have notable effects.