Sekisui Chemical (4204) Q3 2025 earnings summary

Executive summary

• Net sales and all profit levels reached record highs for Q3 and the nine-month period, with Q3 net sales at 326.3 billion JPY and nine-month net sales at 955.3 billion JPY, driven by strong demand in electronics, high-performance products, and effective cost management.

• All business segments contributed to profit growth, supported by margin improvements, cost controls, and positive foreign exchange effects.

• Full-year forecasts for net sales, operating profit, and dividends were revised upward, with record highs expected.

• Growth was achieved despite sluggish domestic housing and global auto production.

Financial highlights

• Q3 FY2024 net sales: 326.3 billion JPY (+13.7 billion YoY); operating profit: 28.6 billion JPY (+4.0 billion YoY); net profit: 25.6 billion JPY (+11.6 billion YoY).

• 1Q–3Q FY2024 net sales: 955.3 billion JPY (+31.4 billion YoY); operating profit: 77.4 billion JPY (+11.5 billion YoY); net profit: 68.5 billion JPY (+10.1 billion YoY).

• Gross profit margin improved to 32.5% (+1.3pt YoY); EPS for the period was 163.73 yen.

• FY2024 full-year forecast: net sales 1,307.7 billion JPY (+51.2 billion YoY), operating profit 107.0 billion JPY (+12.6 billion YoY), net profit 80.0 billion JPY (+2.1 billion YoY).

• Annual dividend forecast raised to 77 JPY per share (+3 JPY YoY).

Outlook and guidance

• FY24 net sales projected at 1,307.7 billion JPY, operating profit at 107.0 billion JPY, and net profit at 80.0 billion JPY, all expected to reach new record highs.

• Operating profit guidance revised up due to higher sales of high-performance products, improved selling prices, and FX impact.

• Dividend per share to increase to 77 JPY, with a 3 JPY hike from last year.