Sekisui Chemical (4204) Q2 2025 earnings summary

Executive summary

• Achieved record-high H1 FY2024 net sales of ¥629.1 billion and operating profit of ¥48.7 billion, driven by high-performance product sales, cost controls, and all segments posting profit growth despite a sluggish domestic housing market.

• Full-year operating profit outlook revised upward by ¥3 billion to ¥105 billion, with all segments expected to increase profit and net sales forecast at ¥1,308.7 billion.

• Annual dividend planned at ¥75 per share, marking the 15th consecutive year of dividend growth, with interim dividend raised to ¥37 per share.

• Shareholder returns included buyback and cancellation of 4 million shares and a planned dividend hike.

• Perovskite Solar Cell project selected for NEDO Green Innovation Fund, accelerating commercialization and continued investment in innovation projects.

Financial highlights

• H1 FY2024 net sales: ¥629.1 billion (up ¥17.8 billion YoY); operating profit: ¥48.7 billion (up ¥7.6 billion YoY); net profit: ¥42.9 billion, boosted by cross-shareholding sales.

• Ordinary profit at ¥48.1 billion (down ¥3.4 billion YoY), profit attributable to owners at ¥42.9 billion (down ¥1.5 billion YoY), mainly due to FX losses.

• Gross profit margin improved to 32.2% from 30.8% YoY; operating margin for the first half was 7.7%, up from 6.7% YoY.

• EBITDA for H1 FY2024 reached ¥75.0 billion, up ¥8.4 billion YoY; full-year projected at ¥160 billion.

• EPS for the period was ¥102.51, down from ¥104.18 a year earlier.

Outlook and guidance

• Full-year net sales forecast revised to ¥1,308.7 billion, operating profit guidance raised to ¥105.0 billion (+11.2%), ordinary profit expected at ¥102.5 billion, and profit attributable to owners projected at ¥78.0 billion.

• ROE forecast at 10.2%, in line with medium-term plan targets; ROIC projected at 8%.

• Second half net sales planned at ¥679.6 billion, operating profit at ¥56.3 billion, with all four segments to increase profit.

• Market recovery expected in electronics, construction, and consumer goods; Japanese housing market remains weak.

• On track to achieve ¥115 billion operating profit target for FY2025 midterm plan.