Resonac (4004) Q4 2025 earnings summary

Executive summary

• Transitioned from structural reforms to a growth-focused phase, targeting global top-tier status in functional materials, with significant reforms and divestitures improving profitability and setting the stage for growth in AI-related semiconductors.

• Core operating profit reached a record high in the Semiconductor and Electronic Materials segment, offsetting weakness in Chemicals and other segments.

• 2025 revenue declined 3.2% year-over-year to ¥1,347.1 billion, with only the Semiconductor and Electronic Materials segment showing growth.

• Profit attributable to owners of the parent dropped 60.5% to ¥29.0 billion, mainly due to impairment losses and absence of prior year one-time gains.

• Ongoing portfolio optimization, divestitures, and investments in high-growth segments.

Financial highlights

• FY2025 revenue: ¥1,347.1 billion, down ¥44.4 billion year-on-year; core operating profit: ¥109.1 billion, up ¥17.0 billion year-on-year; EBITDA margin: 15.1%, up 1.4 points year-on-year.

• IFRS-based operating profit: ¥46.7 billion, down ¥42.4 billion due to non-recurring losses.

• Profit attributable to owners: ¥29.0 billion, down ¥44.5 billion year-on-year; basic EPS: ¥160.49.

• Annual dividend per share: ¥65.00 (unchanged).

• Free cash flow declined to ¥43.2 billion in 2025 from ¥111.3 billion in 2024.

Outlook and guidance

• FY2026 revenue forecast: ¥1,310.0 billion; core operating profit: ¥140.0 billion; operating profit forecast to more than double to ¥105.0 billion.

• Profit attributable to owners forecast: ¥77.0 billion, up ¥48.0 billion year-on-year; basic EPS forecast: ¥425.45.

• EBITDA margin expected at 17.9%; excluding Crasus Chemical, 21.6%.

• Dividend per share maintained at ¥65.

• Crasus Chemical partial spin-off planned for 2026, with business to be classified as discontinued operations post-spin-off.