Oji Holdings (3861) Q4 2026 earnings summary

Executive summary

• FY2025 operating profit fell to ¥34.6B, down 48.9% year-over-year, mainly due to weaker overseas pulp and paper markets, lower domestic sales volumes, and higher costs in Japan.

• Net sales rose 0.7% year-over-year to ¥1,861.7B, driven by the acquisition of Walki Holding Oy, despite a weak overseas pulp market.

• Profit attributable to owners increased to ¥55.6B, up 20.4%, mainly from FX gains and asset sales, despite restructuring expenses.

• Major restructuring included plant closures, withdrawal from unprofitable businesses, and overseas divestitures, with over ¥10B annual profit impact.

• Strategic investments focused on growth in India, Southeast Asia, sustainable packaging, and forest biomass.

Financial highlights

• FY2025 net sales were ¥1,861.7B (+0.7% YoY); operating profit dropped to ¥34.6B (−48.9% YoY); profit attributable to owners: ¥55.6B (+20.4% YoY).

• Comprehensive income: ¥77.1B (−11.0% YoY).

• Cash flows from operating activities: ¥113.4B; investing activities: −¥12.5B; financing activities: −¥93.6B.

• Cash and cash equivalents at year-end: ¥74.2B.

• Depreciation increased to ¥92.8B.

Outlook and guidance

• FY2026 operating profit forecast is ¥60.0B (+73.5% YoY), with net sales of ¥1,940.0B (+4.2% YoY).

• Profit attributable to owners forecast at ¥35.0B (−37.0% YoY).

• Dividend payout ratio raised to 50%, with annual dividend of ¥36/share planned for FY2026.

• ROE expected to decrease to 3.3% in FY2026.

• Forecast includes a ¥15B negative impact from Middle East tensions, with cost increases expected to be passed on via price hikes.