Furuya Metal (7826) Q4 2025 earnings summary

Executive summary

• FY2025 net sales reached a record 57.4 billion yen, up 20.7% year-over-year, driven by Fine Chemicals & Recycling and Thin Film segments, but gross profit declined due to higher manufacturing costs and yen appreciation.

• Net income attributable to owners of parent decreased 12.7% year-over-year to 6.5 billion yen.

• Overseas sales accounted for over 60% of total revenue, with strong demand in Asia, North America, and Europe.

• The company faces ongoing global economic uncertainty, including U.S. tariffs, volatile precious metal prices, and yen appreciation.

• Annual dividend was 96 yen (pre-stock split: 288 yen), with a planned reduction to 60 yen for FY2026.

Financial highlights

• Revenue reached 57.4 billion yen, a 20.7% increase year-over-year.

• Ordinary profit fell to 9.4 billion yen, down 12.2% year-over-year; operating income was 9.5 billion yen, down 2.8%.

• Net income was 6.5 billion yen, a 12.7% decrease year-over-year.

• Gross margin declined to 24.7% in Q4 FY2025 from 31.1% in Q4 FY2024.

• Total assets increased to 123.9 billion yen; net assets rose to 64.6 billion yen.

Outlook and guidance

• FY2026 forecast: Net sales of 55 billion yen (down 4.1% YoY), ordinary profit of 7 billion yen (down 25.4% YoY), and net income of 4.8 billion yen (down 28.6% YoY).

• Operating income for FY2026 is forecast at 7.5 billion yen, down 21.4% YoY.

• Segment outlook: Thin Film and Thermal expected to grow, Fine Chemicals & Recycling to decline due to lower spot demand.

• U.S. tariff impact expected to be minimal in FY2026.

• Focus on strengthening core technologies and expanding into new growth fields.