KH Neochem (4189) Q4 2025 earnings summary

Executive summary

• FY2025 net sales were ¥115.1 billion, down 3.9% year-over-year, with operating income at ¥11.2 billion, down 7.8% year-over-year.

• Net income attributable to owners was ¥7.8 billion, down 6.7% year-over-year.

• EBITDA reached ¥17.6 billion, the second-highest level ever, despite profit declines due to demand slowdown and higher depreciation.

• Comprehensive income increased 5.0% to ¥9.3 billion.

• FY2026 forecasts project net sales of ¥114.0 billion (-1% YoY), operating income of ¥13.5 billion (+20% YoY), and net income attributable to owners of ¥8.7 billion (+11.5% YoY).

Financial highlights

• Ordinary income fell 10.5% year-over-year to ¥10.8 billion.

• Basic earnings per share was ¥218.15 in FY2025, with FY2026 forecast at ¥248.51.

• Cash flows from operating activities increased to ¥13.8 billion in FY2025; cash and cash equivalents at year-end were ¥6.7 billion.

• Operating income margin for FY2025 was 9.8%, compared to 10.2% in FY2024.

• FY2026 profit attributable to owners is forecast at ¥8.7 billion (+12% YoY), with operating income margin rising to 11.8%.

Outlook and guidance

• Operating income growth is expected across all segments in FY2026 as temporary negative factors subside and demand in growth sectors is captured.

• Dividend per share is forecast to increase by ¥5 to ¥110 in FY2026, continuing consecutive annual increases.

• Earnings forecasts are based on current information and assumptions; actual results may differ due to various factors.