Zeon (4205) investor relations material

Executive summary

• Net sales for Q1–Q3 FY2025 were ¥309.7 billion, down 1.8% year-over-year, while operating income rose 14.2% to ¥27.6 billion and net income surged 41% to ¥28.3 billion, driven by gains on investment securities and strong specialty materials performance.

• Q3 FY2025 net sales were flat sequentially at ¥103.2 billion, with operating income up 14% and ordinary income up 51% quarter-over-quarter, reflecting higher shipments in elastomers and specialty chemicals.

• Comprehensive income increased 67.9% year-over-year to ¥27,719 million for the period.

• Upward revision of full-year forecasts: net sales expected at ¥407.5 billion, operating income at ¥31.0 billion, and net income at ¥31.5 billion, reflecting robust specialty materials and yen depreciation.

Financial highlights

• Q1–Q3 FY2025 operating income increased by ¥3.4 billion year-over-year, despite a ¥5.7 billion decline in net sales.

• Gross profit remained stable at ¥90,428 million, while operating profit improved to ¥27,600 million from ¥24,173 million year-over-year.

• Ordinary profit rose 9.5% to ¥29,964 million, and basic earnings per share increased to ¥145.35 from ¥96.74.

• Extraordinary profit for Q1–Q3 FY2025 was ¥16.2 billion, mainly from gains on sale of investment securities.

• Total assets grew to ¥550,300 million as of December 31, 2025, up from ¥533,786 million at the previous fiscal year-end.

Outlook and guidance

• Full-year FY2025 net income forecast revised up by 20% year-over-year to ¥31.5 billion.

• Specialty Materials Business forecast revised upward for both net sales and operating income; Elastomer Business net sales forecast revised downward but operating income revised upward due to yen depreciation.

• Dividend forecast maintained at ¥72/share, with treasury stock buyback up to 10 million shares or ¥10 billion.

• Q4 expected to see seasonal declines in synthetic rubbers and optical films shipments, and higher period-end indirect expenses.

• Basic earnings per share for the full year projected at ¥162.32.