MEC Company (4971) Q4 2025 earnings summary

Executive summary

• Net sales reached ¥20,947 million, up 14.9% year-over-year, driven by strong demand in generative AI, advanced semiconductor package substrates, and high value-added products.

• Operating income increased 26.0% to ¥5,748 million, with operating margin improving to 27.4%.

• Net income surged 119.4% year-over-year to ¥5,028 million, reflecting robust business performance and extraordinary income from government subsidies.

• Overseas sales ratio increased to 79.3%, with indirect exports included at 80.3%, reflecting robust international demand, especially in Taiwan and China.

• The first year of the 2030 Vision: Phase 2 exceeded initial expectations, prompting upward revisions to medium-term targets.

Financial highlights

• Gross profit rose 16.9% year-over-year to ¥12,977 million, with gross margin improving to 62.0%.

• Ordinary income rose 29.2% to ¥6,051 million, aided by foreign exchange gains.

• Comprehensive income nearly doubled to ¥5,779 million.

• Major chemical product sales: CZ up 19.8%, EXE up 4.9%, V-Bond up 1.1%, while SF declined 30.5%.

• Cash and cash equivalents at year-end were ¥8,749 million, down ¥1,504 million from the previous year.

Outlook and guidance

• FY2026 net sales forecasted at ¥22,500 million (up 7.4%), operating income at ¥6,500 million (up 13.1%), and net income at ¥4,600 million (down 8.5% due to one-time subsidy income in FY2025).

• Revised 2027 targets: net sales ¥25.0 billion, operating margin 26–30%, ROE 13–16%.

• Demand for advanced semiconductor package substrates and chemical adhesion promoters expected to grow with advances in IoT, AI, 5G, and semiconductor markets.