Japan Pulp and Paper Company (8032) Q4 2025 earnings summary

Executive summary

• Revenue rose 3.8% year-over-year to ¥554.5 billion, driven by growth in Japan Wholesaling, Non-Japan Wholesaling, Paper Manufacturing & Processing, and Real Estate Leasing segments, but operating profit fell 13.4% and ordinary profit declined 5.6%.

• Profit attributable to owners of the parent dropped 26.9% year-over-year to ¥7.6 billion, mainly due to impairment losses at subsidiaries in Paper Manufacturing & Processing and Non-Japan Wholesaling.

• Comprehensive income decreased 41.0% year-over-year to ¥11,087 million.

Financial highlights

• Gross profit increased 4.6% year-over-year to ¥91.5 billion.

• Operating profit was ¥15.1 billion (down 13.4%), ordinary profit ¥15.8 billion (down 5.6%), and net income ¥7.6 billion (down 26.9%).

• Free cash flow was ¥9.8 billion; cash and cash equivalents at year-end rose by ¥1.6 billion to ¥19.0 billion.

• Dividend per share increased to ¥25, marking the fourth consecutive annual increase.

• Basic earnings per share was ¥61.44, reflecting a stock split during the year.

Outlook and guidance

• FY2025 forecasts: operating profit ¥16.5 billion (+9.5%), ordinary profit ¥15.5 billion (-2.0%), profit attributable to owners of parent ¥8.5 billion (+12.3%).

• Dividend forecast for FY2025 is ¥28 per share.

• Medium-term plan targets consolidated ordinary profit of ¥22.0 billion by FY2026 and ¥25.0 billion by FY2030.

• Segment guidance: Non-Japan Wholesaling profit expected to rise 22.1%, while Japan Wholesaling, Raw Materials & Environment, and Real Estate Leasing profits are forecast to decline.