Dowa Holdings (5714) Q4 2025 earnings summary

Executive summary

• FY2024 net sales declined 5% year-over-year to 678.6 billion yen, with operating income up 7% to 32.2 billion yen and ordinary income down 3% to 43.5 billion yen.

• Profit attributable to owners of parent was 27.1 billion yen, nearly flat or down 2.6% year-over-year.

• Comprehensive income declined 10.3% to 34.9 billion yen.

• Environmental Management & Recycling segment saw strong growth, while Electronic Materials and Nonferrous Metals segments declined.

• Annual dividend increased to 150 yen per share, with a forecast of 159 yen for FY2026.

Financial highlights

• Net sales decreased by 38.5 billion yen year-over-year; operating income rose by 2.2 billion yen.

• Operating profit margin improved to 4.7% from 4.2% year-over-year.

• Cash flows from operating activities dropped sharply from 118.6 billion yen to 12.8 billion yen.

• Total assets increased by 40.7 billion yen to 673.5 billion yen, mainly due to higher inventories and capital investment.

• Cash and cash equivalents at year-end dropped to 41.2 billion yen from 73.0 billion yen.

Outlook and guidance

• FY2025/2026 net sales forecasted at 692.0 billion yen (+2%), operating income at 24.0 billion yen (-26%), and ordinary income at 34.0 billion yen (-22%).

• Profit attributable to owners of parent expected to remain stable at 27.0 billion yen or fall to 21.1 billion yen.

• Annual dividend forecast raised to 159 yen per share.

• Automotive and information/communication-related sales expected to remain firm; new energy-related sales to recover in H2.

• Yen expected to appreciate and metal prices to decline; depreciation and raw material costs to rise.