Asahi Kasei (3407) Q2 2026 earnings summary

Executive summary

• H1 2025 operating income was ¥107.5B, down 1.3% YoY, while net income rose 10% to ¥66.3B, exceeding forecasts.

• Net sales for H1 2025 were ¥1,486.4B, down 0.3% YoY; EPS increased to ¥48.79.

• Comprehensive income improved to ¥71,515M from a loss of ¥18,973M in the prior year.

• Growth in Healthcare (notably Pharmaceuticals) and Homes offset declines in Material, which was impacted by inventory valuation and maintenance.

• Shareholder returns enhanced with a ¥40/share dividend (up ¥2 YoY) and up to ¥40B share repurchase.

Financial highlights

• H1 2025 net sales: ¥1,486.4B (-0.3% YoY); operating income: ¥107.5B (-1.3% YoY); net income: ¥66.3B (+10.0% YoY).

• EBITDA for H1 2025: ¥202.9B (+2.8% YoY); EBITDA margin: 13.7%.

• EPS for H1 2025: ¥48.79 (+12.3% YoY).

• FY 2025 forecast: net sales ¥3,080.0B (+1.4% YoY), operating income ¥221.0B (+4.3% YoY), net income ¥140.0B (+3.7% YoY), EPS ¥103.15.

• Gross profit for H1 2025 was ¥483,639M, up from ¥470,010M YoY.

Outlook and guidance

• FY 2025 operating income and net income forecasts revised upward, aiming for record highs for a second consecutive year.

• Dividend forecast raised to ¥40/share; share repurchase up to ¥40B planned.

• First Priority businesses (Pharmaceuticals, Electronics) expected to drive growth.