Resonac (4004) Q2 2025 earnings summary

Executive summary

• Core operating profit improved year-over-year, rising 4.3% to ¥34.6 billion, driven by strong performance in the Semiconductor and Electronic Materials segment, while Chemicals underperformed due to weak graphite electrode markets.

• Revenue for 1H 2025 was ¥642.1 billion, down 4.1% year-over-year, with only the Semiconductor and Electronic Materials segment growing.

• Profit attributable to owners dropped 56.6% to ¥19.7 billion, mainly from lower operating profit and adverse FX impacts.

• No revision to the full-year forecast as 1H performance aligns with expectations, especially in the Semiconductor and Electronic Materials segment.

• IFRS adoption and segment reclassification were implemented, with prior-year figures restated for comparability.

Financial highlights

• Revenue decreased by ¥27.5 billion year-over-year to ¥642.1 billion, with only the semiconductor segment posting growth.

• Core operating profit increased by ¥1.4 billion to ¥34.6 billion, but operating profit fell by ¥17.1 billion to ¥32.6 billion due to the absence of last year's asset sale gain.

• Profit attributable to owners was ¥19.7 billion, down ¥25.6 billion year-over-year, impacted by FX losses and no asset sale gain.

• EBITDA was ¥82.1 billion, nearly flat year-over-year, with margin improving to 12.8%.

• Free cash flow turned negative at ¥-13.3 billion, down ¥57.8 billion from 1H 2024.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥1,422.0 billion, up 2.2% year-over-year, with core operating profit projected at ¥98.0 billion (+6.4%) and EBITDA margin 13.6%.

• Annual guidance is unchanged, with business transfer losses and FX impacts already factored into the forecast.

• Profit attributable to owners expected to fall 64.6% to ¥26.0 billion; basic EPS guidance for FY2025 is ¥143.87.