Chugai Pharmaceutical (4519) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue of JPY 1,257.9 billion in FY2025, with operating profit surpassing JPY 600 billion for the first time and a record operating margin of 49.5%, driven by strong exports of Actemra and Hemlibra to Roche.

• Net income after taxes reached JPY 451.0 billion, a 13.6% increase YoY, with core net income rising for the ninth consecutive year.

• R&D expenses increased to JPY 180.1 billion (+1.8% YoY), reflecting ongoing investment in drug discovery and development.

• Special dividends were paid for the 100th anniversary, resulting in a high payout ratio for FY2025.

• FY2026 guidance projects revenue of JPY 1,345 billion (+6.9% YoY), core operating profit of JPY 670 billion (+7.5% YoY), and net income of JPY 485.0 billion (+7.5% YoY), supported by domestic sales and royalty income.

Financial highlights

• FY2025 revenue rose 7.5% YoY to JPY 1,257.9 billion; core operating profit up 12.1% to JPY 623.2 billion; net income after taxes reached JPY 451.0 billion (+13.6% YoY); EPS: JPY 274.02 (+13.6% YoY).

• Domestic sales: JPY 472.4 billion (+2.5% YoY); overseas sales: JPY 605.4 billion (+12.8% YoY); other revenue: JPY 180.1 billion (+4.3% YoY).

• Operating profit margin expanded to 49.5%; cost to sales ratio improved by 1.3ppt to 32.6%.

• ROIC reached 44.3% in 2025; ROE at 28.7%; equity ratio at 82.1%.

• Free cash flow: JPY 273.3 billion (down 29.3% YoY); cash and cash equivalents at year-end: JPY 426.6 billion.

Outlook and guidance

• FY2026 revenue forecast at JPY 1,345 billion (+6.9% YoY); core operating profit at JPY 670 billion (+7.5% YoY); core net income at JPY 485.0 billion (+7.5% YoY); core EPS expected to rise to JPY 295.00 (+7.7% YoY).

• Dividend for FY2025 set at JPY 272 per share, including a commemorative dividend; FY2026 forecast annual dividend is JPY 132 per share, with a payout ratio of 44.7%.

• Domestic product sales expected to rise by JPY 25.6 billion, offsetting NHI price revision and generic competition; overseas sales to remain flat.

• Other revenues to increase significantly, driven by royalties and milestone payments.

• Strategic focus on accelerating R&D, digital transformation, and global product launches to achieve sustainable growth.