Nippon Shokubai (4114) Q4 2025 earnings summary

Executive summary

• FY2024 revenue increased 4.4% to ¥409.3B, with operating profit up 15.1% to ¥19.1B, driven by higher volumes in specialty chemicals, electronics materials, and AA/AES products, as well as improved equity-method investment profit.

• Profit attributable to owners rose 58.0% to ¥17.4B, and basic EPS grew 61.6% to ¥113.90, reflecting improved profitability and a 4-for-1 stock split.

• FY2025 is forecasted to see decreases in both revenue and operating profit due to yen appreciation, higher SG&A expenses, narrowing spreads, and lower raw material prices, despite expected sales volume growth.

Financial highlights

• FY2024 revenue: ¥409.3B (+4.4% YoY), operating profit: ¥19.1B (+15.1% YoY), profit attributable to owners: ¥17.4B (+58.0% YoY).

• Gross profit rose to ¥70.4B from ¥68.0B YoY.

• FY2025 forecasts: revenue ¥405.0B (-1.1% YoY), operating profit ¥17.0B (-10.8% YoY), profit attributable to owners ¥15.0B (-13.8% YoY).

• Cash and cash equivalents at year-end were ¥54.6B, down ¥565M from the previous year.

• Net cash provided by operating activities was ¥47.0B, with investing and financing activities using ¥30.5B and ¥16.8B, respectively.

Outlook and guidance

• FY2025 expects increased sales volumes but lower profits due to currency headwinds, higher SG&A, reduced equity-method investment profit, and lower raw material prices.

• Solutions business is projected to expand steadily, with aggressive investment planned to drive profit growth toward FY2027.

• Annual dividend for FY2025 is planned at ¥100/share, maintaining a payout ratio of 100% or DOE 2.0%, whichever is greater.