Kureha Corporation (4023) investor relations material

Executive summary

• Core operating profit improved year-over-year, but operating profit and net profit declined sharply due to significant impairment losses in PVDF and Pharmaceuticals businesses.

• Revenue decreased 0.2% year-over-year to ¥161,688 million, with a shift from operating profit to a loss of ¥18,592 million due to significant impairment losses and market headwinds.

• Loss attributable to owners of parent was ¥10,693 million, compared to a profit of ¥7,800 million the previous year.

• Major impairments were recognized in the PVDF resin business and manufacturing facilities for chronic kidney disease drugs, reflecting weak EV market demand and pharmaceutical market contraction.

• Revenue remained flat as gains in PGA and Home Products were offset by lower PVDF prices and withdrawal from ML film.

Financial highlights

• FY2025 revenue: ¥161.7B (flat YoY); core operating profit: ¥14.5B (+¥4.5B YoY); operating loss: -¥18.6B (vs. +¥9.4B prior year); net loss: -¥10.7B (vs. +¥7.8B prior year).

• EBITDA rose to ¥30.2B from ¥22.1B YoY.

• FY2026 revenue forecast: ¥172.0B (+¥10.3B YoY); core operating profit forecast: ¥10.0B (-¥4.5B YoY); operating profit forecast: ¥11.0B.

• Basic loss per share was ¥267.14, versus earnings of ¥149.67 per share prior year.

• Cash and cash equivalents increased to ¥29,726 million at period end.

Outlook and guidance

• FY2026 expects higher sales in PGA, Home Products, Fishing Lines, and Construction.

• Core operating profit is forecast to decline due to increased raw material and fuel costs from Middle East tensions and higher processing costs.

• Operating profit to recover due to absence of impairment losses.

• FY2027 forecast: revenue ¥172,000 million (+6.4% YoY), operating profit ¥11,000 million, profit attributable to owners of parent ¥7,500 million.

• Segment outlook: steady demand expected for advanced materials and specialty plastics, with ongoing challenges in environmental engineering and pharmaceuticals.