Daicel (4202) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025/3 rose 5.1% year-over-year to ¥586.5 billion, driven by demand recovery in automotive and electronic materials, cost reductions, and favorable exchange rates, despite certification issues at Japanese automakers.

• Operating income declined 2.2% to ¥61.0 billion, ordinary profit fell 8.9% to ¥62.3 billion, and net income attributable to owners of parent dropped 11.4% to ¥49.5 billion.

• EBITDA increased 6.5% to ¥102.4 billion.

• Extraordinary gains from cross-shareholding sales and losses from business restructuring and impairments were recorded.

• Comprehensive income decreased sharply to ¥30,946 million from ¥92,977 million the prior year.

Financial highlights

• Gross profit increased to ¥164.7 billion from ¥159.3 billion year-over-year.

• Free cash flow increased to ¥45.5 billion, with operating cash flow at ¥93.4 billion and investing cash flow at -¥47.9 billion.

• Interest-bearing debt reduced by ¥18.0 billion; total assets decreased by ¥25.3 billion to ¥813.8 billion.

• Dividend per share increased to ¥60 (from ¥50), with a payout ratio of 33.1%.

• Cash and cash equivalents at year-end were ¥64.8 billion.

Outlook and guidance

• FY2026/3 forecasts: net sales ¥600.0 billion (+2.3%), operating income ¥54.0 billion (-11.5%), EBITDA ¥97.0 billion (-5.3%), ordinary profit ¥54.0 billion (-10.1%), and net income ¥54.0–56.0 billion (+9.1%).

• Annual dividend forecast maintained at ¥60 per share; 10 million treasury shares to be cancelled.

• Company expects higher sales volume in engineering plastics and airbag inflators, but lower profits due to yen appreciation and higher depreciation.