MEC Company (4971) Q3 2025 earnings summary

Executive summary

• Q3 FYE12/2025 net sales reached 14,987 million yen, up 9.5% year-over-year, driven by strong demand in chemicals for advanced semiconductor package substrates, especially those related to generative AI, PCs, and smartphones.

• Operating income increased 16.4% year-over-year to 4,247 million yen, with an operating margin of 28.3%, up 1.6 percentage points.

• Net income attributable to owners of parent grew 26.7% year-over-year to 3,329 million yen, aided by extraordinary income from a government subsidy.

• Overseas sales ratio increased to 80.6% from 77.8% in the same period last year, with indirect overseas sales included at 80.7%.

Financial highlights

• Gross profit for Q3 was 9,349 million yen, up 11.3% year-over-year, with a gross margin of 62.4%.

• Comprehensive income rose 45.5% year-over-year to 3,595 million yen.

• EBITDA for Q3 was 5,364 million yen, up 24.9% year-over-year.

• EPS for Q3 was 179.53 yen, up from 140.32 yen in the prior year.

• Total assets grew to 34,292 million yen, and net assets to 28,312 million yen, with an equity ratio of 82.6%.

Outlook and guidance

• Full-year FYE12/2025 net sales forecast revised to 20,300 million yen, up 11.3% year-over-year.

• Full-year operating income forecast at 5,500 million yen, up 20.5% year-over-year.

• Net income forecast at 4,300 million yen, up 87.6% year-over-year.

• Annual dividend forecast raised to 85 yen per share.

• Demand for CZ series and chemical adhesion promoters expected to rise, driven by semiconductor market recovery and technological innovation.