DIC (4631) Q4 2025 earnings summary

Executive summary

• FY2025 net sales fell 1.8% to ¥1,052.2 billion, while operating income rose 17.2% to ¥52.2 billion and net income attributable to owners increased 51.8% to ¥32.4 billion.

• Strong high-value-added product sales, price revisions and improved pigment profitability supported earnings despite weak mass-market demand; a ¥6.9 billion gain from art sales boosted net income.

• FY2026 guidance targets higher sales and record operating income, as Phase 2 of DIC Vision 2030 begins.

Financial highlights

• FY2025 ordinary income was ¥44.2 billion, up 16.7%; lower interest expense helped, while FX losses widened to ¥5.1 billion from ¥2.9 billion.

• Operating margin improved to 5.0% from 4.2%; EBITDA rose 14.2% to ¥109.3 billion.

• Free cash flow was ¥52.4 billion; net cash from operating activities increased to ¥72.97 billion from ¥46.21 billion.

• FY2025 EPS rose to ¥341.71 from ¥225.11.

Outlook and guidance

• FY2026 forecast: net sales ¥1,100.0 billion, operating income ¥56.0 billion, ordinary income ¥48.0 billion, net income attributable to owners ¥33.0 billion and EBITDA ¥111 billion.

• FY2026 assumptions include USD/JPY 150 and EUR/JPY 168; ROIC is forecast at 4.7%, ROE at 7.1% and net D/E at 0.8x.

• Annual dividend is planned at ¥140 per share; first-half sales are forecast at ¥560.0 billion and operating income at ¥29.0 billion.

• FY2026 operating income plan includes ¥10.9 billion from volume and mix recovery against ¥11.6 billion of cost increases; inflation and inventory valuation impacts remain uncertain.