Dai Nippon Printing (7912) Q4 2025 earnings summary

Executive summary

• FY2024 sales rose 2.3% year-over-year to ¥1,457.6 billion, with operating income up 24.1% to ¥93.6 billion and ordinary income up 17.4% to ¥115.9 billion; net income attributable to shareholders was ¥110.6 billion, nearly flat year-over-year.

• Achieved Medium-term Plan operating income and strategic shareholding reduction targets a year early, focusing on sustainable business value and strategic investments.

• Growth in focus business areas offset challenges in automotive battery pouches and increased depreciation for OLED display metal masks.

• The business environment showed gradual economic recovery in Japan, but uncertainty remains due to market volatility, geopolitical risks, and high raw material costs.

• Structural reforms and capital investments in core businesses contributed to steady performance.

Financial highlights

• Operating income margin improved to 6.4% from 5.3% the previous year.

• Gross profit increased to ¥338.3 billion from ¥313.7 billion year-over-year.

• Capital expenditures rose 12.1% to ¥76.6 billion; R&D spending increased 6.6% to ¥37.5 billion.

• Depreciation expenses decreased 4.1% to ¥53.7 billion.

• Comprehensive income dropped sharply to ¥49.3 billion from ¥184.5 billion year-over-year, mainly due to a significant decline in other comprehensive income.

Outlook and guidance

• FY2025 sales forecast at ¥1,500.0 billion (+2.9%), with operating income expected at ¥94.0 billion (+0.4%).

• Net income projected to decline 18.7% to ¥90.0 billion; ROE expected to decrease to 8.0%.

• Segment forecasts: Smart Communication sales up 2.0%, Life & Healthcare up 4.2%, Electronics up 2.9%.

• Focus businesses (OLED metal masks, photomasks) and stable businesses (Information Security, Life and Healthcare) expected to drive growth.

• Capital expenditures and R&D to increase further in FY2025.