Dowa Holdings (5714) Q2 2026 earnings summary

Executive summary

• First half of FY2025 saw net sales decrease by 10.0% year-over-year to ¥317,188 million, operating profit down 45.3% to ¥11,750 million, and profit attributable to owners of parent down 33.6% to ¥13,625 million, mainly due to lower silver powder sales, derivative losses, and unfavorable zinc raw material conditions; second half is expected to recover with higher metal prices, increased waste treatment orders, and stronger copper alloy sales for autos.

• Comprehensive income dropped to ¥10,034 million from ¥27,190 million year-over-year.

• Full-year ordinary profit is forecasted to be nearly flat year-on-year, despite a challenging first half.

Financial highlights

• FY2025 full-year net sales forecast: ¥696.0 billion, up ¥17.3 billion or 2.6% year-on-year.

• Operating profit forecast: ¥28.5 billion, down ¥3.7 billion year-on-year; full-year operating profit expected to rise 14.3% to ¥31,000 million.

• Ordinary profit forecast: ¥43.0 billion, nearly flat year-on-year.

• Profit attributable to owners of parent: forecasted at ¥31.0 billion, up ¥3.8 billion year-on-year, but another forecast expects a decrease to ¥28,500 million, down 11.6%.

• Annual dividend per share forecast: ¥183, up ¥33 year-on-year.

Outlook and guidance

• Second half expected to benefit from rising metal prices, increased waste treatment demand, and higher copper alloy sales.

• Profit is projected to increase by ¥9.0 billion compared to the initial plan, driven by higher metal prices and increased equity method income from overseas zinc mines.

• Both precious and base metal prices are rising significantly; weaker yen to benefit Nonferrous Metals and Electronic Materials segments.

• Full-year net sales forecasted at ¥696,000 million, with operating profit expected to rise and profit attributable to owners of parent forecast to decrease.