MEC Company (4971) Q1 2025 earnings summary

Executive summary

• Q1 FYE12/2025 net sales reached 4,423 million yen, up 1.6% year-over-year, with operating income at 1,093 million yen, up 3.8% year-over-year.

• Net income declined 38.9% year-over-year to 476 million yen, mainly due to higher corporate income taxes and increased personnel expenses.

• Overseas sales ratio increased to 80.4% (including indirect exports), reflecting strong global demand.

• Chemical segment sales grew 8.0% year-over-year to 4,237 million yen, with shipments up 4.0%.

• Major product performance: CZ up 9.0%, V-Bond up 4.6%, EXE up 2.8%, SF down 46.8% year-over-year.

Financial highlights

• Gross profit rose to 2,748 million yen, with gross margin improving to 62.1% from 58.5% year-over-year.

• Operating margin improved to 24.7%, up 0.5 ppt year-over-year.

• Basic EPS for Q1 2025 was 25.44 yen, down from 41.62 yen in Q1 2024.

• EBITDA decreased 5.2% year-over-year to 1,252 million yen.

• Total assets decreased to 31,428 million yen from 33,039 million yen at year-end 2024.

Outlook and guidance

• Full-year FYE12/2025 net sales forecast at 20,000 million yen, up 9.7% year-over-year.

• Operating income projected at 5,000 million yen (up 9.6%), net income at 3,600 million yen (up 57.1%).

• Dividend forecast for FY2025 is 55 yen per share (up from 45 yen in FY2024).

• Annual dividend per share to be maintained or increased, with a payout ratio target of 30%.

• No change to previously announced earnings forecasts.