Gun Ei Chemical Industry (4229) Q4 2025 earnings summary

Executive summary

• FY2025 net sales rose 0.8% YoY to ¥30,545 million; operating profit fell 16.0% to ¥2,293 million.

• Profit attributable to owners of parent declined 5.9% to ¥1,920 million; comprehensive income fell 54.1% to ¥2,230 million.

• FY2026 guidance calls for net sales of ¥31,000 million (+1.5%) and operating profit of ¥2,300 million (+0.3%).

• The FY2031 targets are ¥400 billion revenue, ¥40 billion operating profit and a 10% operating margin.

Financial highlights

• FY2025 ordinary profit was ¥2,716 million (-14.1%); gross profit was ¥6,525 million, down from ¥6,877 million.

• Operating profit declined ¥430 million: higher sales added ¥230 million, while cost of sales reduced profit by ¥590 million and SG&A by ¥80 million.

• Total assets rose ¥2,007 million to ¥63,018 million; net assets increased ¥1,450 million to ¥51,731 million, including ¥49,745 million in equity.

• Extraordinary income included a ¥220 million gain on sale of investment securities; extraordinary losses fell to ¥34 million from ¥303 million.

Outlook and guidance

• FY2026 forecast: ordinary profit ¥2,500 million (-8.0%), net income ¥1,700 million (-11.5%) and EPS ¥256.29.

• Higher semiconductor-resin sales are expected to support revenue; operating profit is forecast near FY2025 levels as raw-material, depreciation, freight and labor costs rise.

• FY2026 operating-profit bridge: revenue adds ¥450 million; cost of sales subtracts ¥200 million and SG&A subtracts ¥240 million.

• FY2025 and FY2026 dividends are both forecast at ¥100 per share, split evenly between interim and year-end; policy targets a 40% payout ratio.