DIC (4631) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of FY2025 were ¥785.9 billion, down 2.7% year-over-year, while operating income rose 18.9% to ¥40.5 billion and net income attributable to owners of the parent more than doubled to ¥21.7 billion, driven by improved profitability, cost management, and lower extraordinary losses.

• EBITDA for the nine months was ¥77.9 billion, up 19.7% year-over-year, reflecting improved profitability despite lower sales.

• Profitability gains were supported by price adjustments, improved product mix, and structural reforms, especially in the Color & Display segment.

• Extraordinary income increased due to gains from the sale of shares and withdrawal from the liquid crystal materials business, while extraordinary losses decreased with the absence of prior-year divestiture-related losses.

• Earnings per share (basic) rose to ¥229.52 from ¥112.29 year-over-year.

Financial highlights

• Operating margin improved to 5.2% from 4.2% year-over-year.

• Gross profit increased to ¥174.1 billion from ¥170.0 billion year-over-year, with operating income up to ¥40.5 billion from ¥34.0 billion.

• Free cash flow increased to ¥25.9 billion for the nine months.

• Net interest-bearing debt decreased to ¥413.3 billion, and the net D/E ratio improved to 1.01.

• Shareholders’ equity rose to ¥410.5 billion, with an equity ratio of 33.5%.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales of ¥1,060.0 billion, operating income of ¥50.0 billion, and net income attributable to owners of the parent of ¥24.0 billion.

• EBITDA for the full year is projected at ¥99.0 billion, up 3.5% from the prior year.

• Annual dividend forecast is maintained at ¥200.00 per share, with a payout ratio of 78.9%.

• ROIC and ROE targets for FY2025 are 4.3% and 5.9%, respectively.

• No revision to previously published forecasts.