DIC (4631) Q4 2025 earnings summary

Executive summary

• Operating income, ordinary income, and net income attributable to owners exceeded previous forecasts for FY2025, driven by strong high-value-added product sales, price revisions, cost management, and gains from business divestitures, despite a decline in net sales due to weak demand and economic uncertainty.

• Extraordinary gain of ¥6.9 billion from the sale of works of art and a gain of ¥3.1 billion from the divestiture of the liquid crystal materials business significantly boosted net income.

• EBITDA increased 14.2% to ¥109.3 billion, and comprehensive income grew 73.1% to ¥80.1 billion, reflecting strong extraordinary income and improved profitability.

• FY2026 forecasts anticipate record-high operating income, increased net sales, and higher dividends, supported by overseas demand recovery, expanded high-value-added product sales, and a focus on sustainable growth and capital efficiency.

Financial highlights

• FY2025 net sales: ¥1,052.2 billion (down 1.8% year-over-year); operating income: ¥52.2 billion (up 17.2%); net income attributable to owners: ¥32.4 billion (up 51.8%).

• Operating margin improved to 5.0% from 4.2% year-over-year.

• EBITDA rose to ¥109.3 billion (+14.2%).

• Free cash flow increased to ¥52.4 billion, supporting debt reduction.

• Earnings per share rose to ¥341.71 from ¥225.11, and ROE improved to 7.4% from 5.6%.

Outlook and guidance

• FY2026 net sales forecast: ¥1,100.0 billion (+4.5%); operating income: ¥56.0 billion (+7.3%); net income attributable to owners: ¥33.0 billion (+2.0%).

• Ordinary dividend to rise to ¥140 per share, with a total payout ratio target of 40% or higher.

• First half FY2026 net sales expected at ¥560.0 billion (+7.0%), operating income at ¥29.0 billion (+7.5%).

• Focus on sustainable growth and capital efficiency under Phase 2 of the long-term management plan.