DIC (4631) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 declined 2.9% year-over-year to ¥523.2 billion, mainly due to slower shipments, diverging demand trends, and tariff-related uncertainties.

• Operating income rose 22.9% to ¥27.0 billion, driven by overseas pigment business profitability, price revisions, and cost reductions, especially in the Color & Display segment.

• Net income attributable to owners of the parent more than doubled to ¥13.1 billion, reflecting lower extraordinary losses.

• EBITDA for the first half increased 12.0% to ¥49.1 billion, supported by improved profitability and cost controls.

• Dividends for FY2025 are set to double to ¥200 per share, including a special increase, with a revised year-end forecast of ¥150.00 per share.

Financial highlights

• Operating margin improved to 5.2% from 4.1% year-over-year.

• Gross profit increased to ¥116.8 billion from ¥113.1 billion year-over-year.

• Earnings per share (basic) rose to ¥138.27 from ¥67.77 year-over-year.

• Net interest-bearing debt rose slightly to ¥424.6 billion, with a net D/E ratio of 1.07.

• Free cash flow for the first half was ¥6.0 billion.

Outlook and guidance

• Full-year net sales forecast revised down to ¥1,060.0 billion, but operating income forecast raised to ¥50.0 billion.

• Net income forecast remains at ¥24.0 billion, with ordinary income revised down due to higher forex losses.

• Record-high operating income is expected in FY2026, with a plan to raise the minimum annual dividend to ¥120.

• Management expects continued economic uncertainty due to tariffs and global market conditions.