Artience (4634) Q4 2025 earnings summary

Executive summary

• Operating profit reached a record high in FY2025, rising 1.7% to 20,765 million yen, driven by recovery and strong performance in pressure sensitive adhesives for displays.

• Net sales declined 0.3% year-over-year to 349,979 million yen, but stable earnings base businesses and growth in strategic areas offset some headwinds.

• Profit attributable to owners of parent dropped 44.2% year-over-year to 10,340 million yen, mainly due to impairment losses in battery-related assets.

• The group focused on shifting to highly-profitable businesses, creating strategic priority businesses, and reforming its business foundation, with significant investments in digital transformation and sustainability.

Financial highlights

• FY2025 net sales: ¥349,979 million (-0.3% YoY); operating profit: ¥20,765 million (+1.7% YoY); profit attributable to owners: ¥10,340 million (-44.2% YoY).

• Gross profit increased to 76,015 million yen from 74,618 million yen year-over-year.

• Operating margin improved to 5.9% (+0.1pt YoY); ROE dropped to 3.9% from 7.3% due to impairment losses.

• Overseas sales ratio remained high at 55.1%.

• Dividend per share was 100 yen for the year, with a payout ratio of 47.5%.

Outlook and guidance

• FY2026 forecast: net sales ¥360,000 million (+2.9%), operating profit ¥23,000 million (+10.8%), profit attributable to owners ¥21,000 million (+103.1%).

• Operating margin expected to rise to 6.4%; ROE projected at 8.0%.

• Growth anticipated in all major segments, with particular strength in overseas packaging and adhesives.