Chugai Pharmaceutical (4519) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue of JPY 1,257.9 billion in FY2025, up 7.5% year-on-year, with core operating profit reaching JPY 623.2 billion (+12.1%) and net income after taxes rising 13.6% to JPY 451.0 billion.

• FY2026 guidance projects revenue of JPY 1,345.0 billion (+6.9%) and core operating profit of JPY 670.0 billion (+7.5%), with net income forecast at JPY 485.0 billion (+7.5%).

• Growth was driven by strong domestic and overseas sales, especially Hemlibra and Actemra exports, increased royalty and profit-sharing income, and new product launches.

• Management focus for 2026 includes strengthening the hemophilia franchise, maximizing value of new products, and accelerating AI-driven business transformation.

• Special dividends were paid for the 100th anniversary, resulting in a high payout ratio for 2025.

Financial highlights

• Domestic sales grew 2.5% to JPY 472.4 billion; overseas sales surged 12.8% to JPY 605.4 billion, led by Hemlibra and Actemra exports.

• Other revenues, including royalties, increased to JPY 180.1 billion (+4.3%).

• Cost of sales ratio improved by 1.3 points to 32.6%; R&D expenses rose to JPY 180.1 billion (+1.8%).

• Positive foreign exchange impact added JPY 49.6 billion to revenue and JPY 44.2 billion to operating profit.

• Earnings per share (basic) increased to JPY 263.73; core EPS projected at JPY 295.00 for 2026 (+7.7%).

Outlook and guidance

• FY2026 revenue expected to rise 6.9% to JPY 1,345.0 billion; core operating profit to increase 7.5% to JPY 670.0 billion; core net income to JPY 485.0 billion.

• Domestic product sales projected to grow by JPY 25.6 billion, with new and mainstay products offsetting price and generic headwinds.

• Overseas sales to remain flat; Lunsumio and Hemlibra to continue growth, while Actemra faces biosimilar pressure.

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

• Annual dividend forecast at JPY 132 per share for 2026, with a payout ratio of 44.7%.