Daicel (4202) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2025/3 rose 6.9% year-over-year to ¥289.7 billion, with operating income up 18.8% to ¥31.6 billion and net income attributable to owners up 7.7% to ¥32.1 billion, driven by higher engineering plastics sales, cost reductions, and favorable exchange rates.

• Growth was supported by increased sales volumes in key product areas, despite global economic uncertainties and mixed demand trends.

• Full-year forecasts were revised downward for operating income and net income due to plant issues and automotive sector weakness, but net sales guidance was revised upward year-over-year.

• Shareholder returns were strengthened with an annual dividend forecast of 60 yen per share (up 10 yen YoY) and a treasury stock buyback of ¥15 billion.

Financial highlights

• 1H FY2025/3 net sales: ¥289.7 billion (+6.9% YoY), operating income: ¥31.6 billion (+18.8% YoY), EBITDA: ¥51.3 billion (+22.5% YoY), net income attributable to owners: ¥32.1 billion (+7.7% YoY).

• Gross profit increased to ¥84.0 billion from ¥74.9 billion year-over-year.

• EPS for the period was ¥116.18, up from ¥104.13 in the prior year.

• Comprehensive income fell to ¥24.1 billion from ¥51.0 billion due to negative foreign currency translation adjustments.

• Gains from sale of affiliated company shares contributed to net profit.

Outlook and guidance

• FY2025/3 full-year net sales forecast revised to ¥600.0 billion (up 7.5% YoY), operating income to ¥60.0 billion, EBITDA to ¥102.5 billion, and net income attributable to owners to ¥51.0 billion (down 8.7% YoY).

• EPS forecast revised to ¥184.70.

• Interim and year-end dividends each forecast at 30 yen per share, with annual total of 60 yen per share.

• Treasury stock buyback of ¥15 billion for 12 million shares planned.