Hokko Chemical Industry (4992) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 6.3% YoY to ¥49,125 million; operating profit increased 8.2% to ¥4,913 million and net profit rose 11.1% to ¥4,452 million.

• Ordinary profit reached a record ¥6,083 million, up 6.9% YoY.

• The second three-year management plan advanced with a focus on production capacity expansion and structural reforms.

Financial highlights

• Gross profit rose to ¥12,713 million from ¥12,070 million; operating margin improved to 10.0% from 9.8%.

• Net profit included a ¥345 million gain on sales of investment securities.

• Comprehensive income rose to ¥8,900 million from ¥787 million, reflecting gains in other comprehensive income.

• Year-end cash and equivalents increased ¥3,516 million to ¥13,224 million.

Outlook and guidance

• FY2026 forecast: revenue ¥52,000 million (+5.9%), operating profit ¥5,200 million (+5.8%), ordinary profit ¥6,100 million (+0.3%) and net profit ¥4,460 million (+0.2%).

• FY2026 guidance assumes ¥145 per US dollar; ordinary profit growth is limited by the loss of FY2025 foreign-exchange gains and lower dividend income.

• FY2029 targets were raised to revenue ¥55 billion and ordinary profit ¥6.8 billion or more; FY2027–29 investment is estimated at ¥15 billion or more, with flexibility for plant rebuilding, active-ingredient acquisition and M&A.

• FY2026 annual dividend is projected at ¥54 per share, up from ¥46.