Hokko Chemical Industry (4992) Q4 2025 earnings summary

Executive summary

• Revenue increased 6.3% year-over-year to ¥49,125 million, driven by strong growth in the agrochemical segment.

• Operating income rose 8.2% to ¥4,913 million, and net income attributable to shareholders grew 11.1% to ¥4,452 million, aided by investment securities gains.

• The company advanced its second three-year management plan, focusing on production capacity expansion and structural reforms.

Financial highlights

• Gross profit improved to ¥12,713 million from ¥12,070 million year-over-year.

• Operating margin increased to 10.0% from 9.8% year-over-year.

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

• Cash and equivalents at year-end rose to ¥13,224 million, up ¥3,516 million from the prior year.

Outlook and guidance

• FY2026 revenue is forecast at ¥52,000 million (+5.9% YoY), with operating income of ¥5,200 million (+5.8%) and net income of ¥4,460 million (+0.2%).

• The company revised its long-term targets upward, aiming for ¥55 billion revenue and ¥6.8 billion+ ordinary profit by FY2029.

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