Pacific Metals (5541) Q4 2025 earnings summary

Executive summary

• Significant deterioration in nickel business led to major deviation from previous plans, with net sales down 15.1% year-over-year to ¥13,175 million and profits falling far short of targets due to global oversupply and weak demand.

• Operating loss improved to ¥7,368 million from ¥9,114 million last year, aided by reversal of inventory write-downs, but ordinary and net losses remained significant.

• Loss attributable to owners of parent widened to ¥1,667 million from ¥1,074 million year-over-year.

• Shift in business model underway, moving away from nickel towards diversified materials, energy, and recycling businesses, including battery materials and beryllium.

• New strategy, PAMCOvision 2031, aims to create a sustainable, recycling-oriented materials company.

Financial highlights

• FY2025 net sales fell 15.1% year-over-year to ¥13,175 million.

• Operating loss improved to ¥-7,368 million from ¥-9,114 million the previous year.

• Ordinary loss narrowed to ¥-1,622 million from ¥-2,119 million year-over-year.

• Loss attributable to owners of parent was ¥-1,667 million, compared to ¥-1,074 million prior year.

• Basic loss per share: ¥(85.52) vs. ¥(55.10) last year.

Outlook and guidance

• Business model shift period expected through FY2026, with profitability targeted from FY2027 as new businesses scale.

• Fiscal year ending March 31, 2026 forecast: net sales ¥9,058 million (down 31.3%), operating loss ¥6,419 million, ordinary loss ¥1,161 million, loss attributable to owners of parent ¥1,468 million.

• Full-scale polymetallic nodule smelting business to commence in FY2029.

• Beryllium and retail electricity businesses expected to contribute to profits by FY2031.

• Target ROE of 8% and P/B ratio of 1 through improved capital efficiency and business diversification.