Kureha Corporation (4023) Q2 2025 earnings summary

Executive summary

• Revenue and profit declined year-over-year in FY2024 2Q, mainly due to a slowdown in the EV and LiB markets impacting PVDF sales and inventory adjustments in several segments.

• Operating profit fell to 7.0 billion yen from 9.1 billion yen in the prior year’s 2Q, with profit attributable to owners at 5.7 billion yen, down from 6.8 billion yen.

• Economic recovery was tempered by global uncertainties, including concerns over China, geopolitical conflicts, and monetary tightening.

• The company is focusing on cost reductions, expanding sales in other business areas, and sustainability initiatives to offset PVDF and PGA business declines.

Financial highlights

• FY2024 2Q segment revenue was 81.6 billion yen, down 6.8 billion yen year-over-year.

• Operating profit was 7.0 billion yen, down 23.9% year-over-year; profit before tax was 7.4 billion yen, down 24.5%.

• Net profit attributable to owners of parent was 5.7 billion yen, down 16.9% year-over-year.

• Cash flow from operating activities improved to 24.1 billion yen, up 16.9 billion yen year-over-year, while investing activities outflow increased to -20.8 billion yen.

• Free cash flow turned positive at 3.3 billion yen compared to -0.3 billion yen last year.

Outlook and guidance

• FY2024 annual revenue forecast revised down to 160.0 billion yen from 170.0 billion yen; core operating profit forecast at 9.5 billion yen, down from 14.0 billion yen initial guidance.

• Full-year revenue forecast for FY2025 is 160.0 billion yen, up 10.1% year-over-year; operating profit forecast is 10.0 billion yen, down 21.9% year-over-year.

• PVDF business expected to remain in the red for the fiscal year, with no recovery in the EV market anticipated until at least 2026 in Europe.

• PGA business faces continued weakness due to low North American gas prices, with full-year loss expected.

• Basic earnings per share forecast is 134.02 yen.