Dexerials (4980) Q3 2025 earnings summary

Executive summary

• FY24Q3 cumulative (nine-month) sales and profits increased, driven by strong ACF sales for OLED smartphones and anti-reflection films for high-end laptops, offsetting the end of phosphor film sales.

• Q3 results were impacted by temporary declines in sensor-related smartphone products and automotive products due to model changes.

• Annual earnings forecast was revised upward, reflecting a weaker yen and increased year-end dividend; share buyback and cancellation of up to 5 billion yen announced.

• Adopted IFRS from FY ending March 31, 2025, with prior periods restated for comparison.

• Strong performance driven by yen depreciation and growth in differentiated technology products, offsetting discontinued Phosphor films.

Financial highlights

• FY24Q3 net sales rose 8.0% year-over-year to JPY 87,163 million; business profit up 12.6% to JPY 31,865 million; net profit up 26.3% to JPY 23,356 million.

• EBITDA increased 14.0% year-over-year to JPY 36,795 million, with EBITDA margin improving to 42.2%.

• Net profit per share rose 28.1% year-over-year to 135.97 yen.

• Free cash flow for Q3 surged to JPY 23,990 million, up JPY 15,776 million year-over-year.

• Total assets: JPY 161,040 million; total equity: JPY 96,790 million as of December 2024.

Outlook and guidance

• FY24 net sales forecast raised to JPY 110,000 million, business profit to JPY 37,000 million, and net profit to JPY 27,000 million.

• Year-end dividend increased to 32 yen (annual 58 yen post-split); total payout ratio expected at 75.2%.

• Share buyback and cancellation totaling up to JPY 10 billion planned for FY24.

• ROE forecast at 29.1%, with DOE at 10.6%.

• Upward revision reflects strong sales of high value-added products and weaker yen; assumed Q4 FX rate revised to 152.7 yen/USD.