Sumitomo Osaka Cement (5232) investor relations material

Executive summary

• Cement business returned to profitability in the 2nd quarter due to lower coal prices and price hikes, despite lower domestic sales volume.

• Advanced Materials segment achieved higher operating profit year-over-year, driven by the ESC lineup.

• Net sales for the six months ended September 30, 2025, were ¥105,772 million, down 2.6% year-over-year, while profit attributable to owners of the parent surged 492.8% to ¥5,590 million due to improved profitability and extraordinary gains.

• Operating profit rose 80.7% year-over-year to ¥4,119 million, and ordinary profit nearly doubled to ¥4,233 million.

• The company continued to implement its medium-term management plan, focusing on profitability improvements, growth in electronic materials, and business expansion in decarbonization and overseas markets.

Financial highlights

• 2nd quarter FY2025 net sales: ¥1,058 billion, down ¥28 billion year-over-year.

• Operating profit: ¥41.2 billion, up ¥18.4 billion year-over-year.

• Profit attributable to owners of the parent: ¥55.9 billion, up ¥46.5 billion year-over-year.

• Extraordinary income rose sharply to ¥3,963 million, primarily from gains on sale of investment securities.

• Basic earnings per share for the period was ¥172.48, up from ¥28.06 a year earlier.

Outlook and guidance

• Full-year revenue and income expected to rise, driven by cement price hikes and lower coal prices.

• Full-year net sales are forecast at ¥225,200 million (up 2.6% year-over-year), with operating profit expected to rise 49.7% to ¥14,000 million and profit attributable to owners of the parent projected at ¥10,000 million (up 11.0%).

• Revised full-year forecast downward from initial guidance due to lower domestic cement sales and delayed price hike impact.

• The company revised its full-year performance forecast and notes that actual results may differ due to various factors.

• Dividend per share maintained at ¥120.