Asahi Kasei (3407) Q2 2025 earnings summary

Executive summary

• Year-on-year operating income increased in all segments, with significant improvement in Material due to strong semiconductor and electronics demand and effective pricing; Homes and Health Care also performed well.

• H1 2024 results exceeded July 2024 forecasts, with Material and Health Care outperforming expectations.

• Completed acquisitions of ODC Construction (Homes) and Calliditas Therapeutics (Health Care), expanding North American and pharmaceutical operations; scope of consolidation expanded by 12 companies.

• Net sales for Q1–Q2 2024 rose 10.7% year-over-year to ¥1,490,334 million, with operating income up 94.9% to ¥108,915 million and net income attributable to owners up 95.3% to ¥60,248 million.

• Comprehensive income turned negative at ¥-18,973 million for Q1–Q2 2024, mainly due to foreign currency translation losses.

Financial highlights

• H1 2024 net sales rose 10.7% year-over-year to ¥1,490.3 billion; operating income up 94.9% to ¥108.9 billion.

• Net income attributable to owners of the parent increased 95.3% year-over-year to ¥60.2 billion.

• EBITDA grew 36.5% year-over-year to ¥197.5 billion; EBITDA margin improved to 13.3%.

• Gross profit margin increased to 31.5% from 28.9% year-over-year.

• Ordinary income surged 99.2% to ¥103,707 million, and net income per share rose to ¥43.46 from ¥22.25.

Outlook and guidance

• FY 2024 net sales forecast at ¥3,071.0 billion (+10.3% year-over-year); operating income forecast at ¥195.0 billion (+38.5%).

• Net income attributable to owners of the parent forecast at ¥110.0 billion (+151.1% year-over-year); EPS forecast at ¥79.90.

• Operating income forecast revised upward from May 2024; Health Care forecast maintained despite Calliditas-related expenses.

• H2 2024 operating income expected to decrease from H1 due to seasonal factors, petrochemical prices, and exchange rates, but overall firm operating climate anticipated.

• Annual dividend forecast maintained at ¥36.00 per share.