JSR (4185) Q4 2025 earnings summary

Executive summary

• FY24 revenue was 405.0 billion yen, with a core operating profit of 0.2 billion yen and a net loss of 217.7 billion yen, mainly due to significant impairment losses and restructuring costs in the Life Science (LS) segment.

• Digital Solutions (DS) segment saw strong growth, especially in semiconductor materials (SEMI), which achieved a 30% year-over-year revenue increase and record profits.

• LS segment faced losses due to the shutdown and partial revenue cancellation of a new CDMO plant and sluggish biotech industry conditions.

• Announced divestiture of the IVD business (82 billion yen share value), not yet reflected in FY24 results.

Financial highlights

• FY24 core operating profit dropped 97% year-over-year, mainly due to LS impairment and restructuring.

• EBITDA fell from 37.2 billion yen in FY23 to -138.6 billion yen in FY24.

• Special expenses for FY24 totaled approximately 210 billion yen, including 157.6 billion yen in impairment losses and 40.5 billion yen in PPA amortization.

• Cash flows from operating activities turned negative at -6.2 billion yen, with free cash flow at -840.8 billion yen due to large acquisition-related outflows.

Outlook and guidance

• FY25 core operating profit is forecast to exceed 30 billion yen, with gains expected from business transfers and elimination of LS's one-time losses.

• DS segment is expected to continue growth, driven by AI-related markets and increased investment in SEMI.

• LS segment anticipates recovery with resumed CDMO plant operations and improving market conditions.

• PLA segment aims for profit growth through sales expansion and cost efficiency.

• Equity ratio is expected to improve to around 40% in FY25, with increased retained earnings and reduced debt.