Oji Holdings (3861) Q2 2026 earnings summary

Executive summary

• Operating profit for the first half of FY2025 declined to ¥16.7 billion, down 55.0% year-over-year, mainly due to a downturn in the overseas pulp market, increased costs, and foreign exchange losses.

• Net sales for the first half of FY2025 were ¥915.0 billion, down 0.9% year-over-year.

• Extraordinary gains from the sale of investment securities were recorded, offset by business restructuring expenses at Oji Fibre Solutions and Oji Nepia.

• The group is executing its Medium-Term Business Plan 2027, focusing on capital efficiency, portfolio transformation, and sustainability, including restructuring low-profit businesses and investing in growth areas like sustainable packaging and forest biomass.

• Major restructuring included plant closures in Japan, withdrawal from certain overseas businesses, and the acquisition of AustroCel Hallein to strengthen the forest biomass segment.

Financial highlights

• Operating profit dropped to ¥16.7 billion from ¥37.2 billion, and profit attributable to owners of parent fell to ¥10.9 billion from ¥24.3 billion.

• Ordinary profit decreased sharply to ¥8.8 billion from ¥39.4 billion.

• Profit per share for the first half was ¥11.85, compared to ¥24.67 in the prior year.

• Comprehensive income turned negative at ¥(41.8) billion, compared to ¥107.3 billion in the previous year, mainly due to foreign currency translation losses.

• Total assets decreased to ¥2,574.1 billion, and net assets fell to ¥1,065.4 billion as of September 30, 2025.

Outlook and guidance

• FY2025 full-year net sales are forecast at ¥1,850.0 billion, with operating profit expected at ¥45.0 billion, down 40% from the previous forecast.

• Profit attributable to owners of parent is forecast to rise to ¥50.0 billion, up ¥3.8 billion year-over-year.

• ROE is projected at 4.7%, up 0.4pt from FY2024.

• Revised forecast lowered operating profit by ¥30.0 billion and net sales by ¥50.0 billion compared to the previous plan.

• Assumed exchange rates for the second half: JPY/USD 150.00, with sensitivity analysis provided.