AGC (5201) Q4 2025 earnings summary

Executive summary

• FY2025 net sales were flat at ¥2,058.8 billion, with operating profit rising to ¥127.5 billion, driven by Automotive improvements and cost measures.

• Profit attributable to owners of the parent improved to ¥69.2 billion, with ROE rising to 4.7%.

• Major impairments in Display (2022) and Biopharmaceutical CDMO (2024) previously weighed on results, but restructuring and absence of prior-year losses stabilized earnings.

• FY2026 outlook anticipates net sales of ¥2,200 billion and operating profit of ¥150 billion, with ROE expected to reach 5.2%.

• Dividend for FY2026 is forecast at ¥210 per share, maintaining a stable payout.

Financial highlights

• Net sales decreased by ¥8.8 billion year-over-year, mainly due to lower PVC prices and reduced shipments in EUV Mask Blanks.

• Operating profit rose by ¥1.6 billion to ¥127.5 billion, supported by product mix and pricing policy improvements.

• Profit before tax rebounded to ¥124.8 billion from a ¥50.1 billion loss, reflecting the absence of prior-year losses.

• Free cash flow was ¥96.1 billion, up from ¥89.2 billion in the prior year.

• CapEx was ¥251.3 billion, depreciation ¥179.8 billion, and R&D expenses ¥60.3 billion.

Outlook and guidance

• FY2026 forecasts net sales up to ¥2,200 billion and operating profit up to ¥150 billion.

• Life Science segment expected to drive profit improvement, with significant loss reduction from US site closure.

• CapEx for 2026 projected at ¥190 billion, with major expansion investments completed in 2025.

• Commitment to achieving 5.2% ROE in 2026, with a longer-term target of 8% or higher.

• Dividend forecast for FY2026 is maintained at ¥210 per share.