Sekisui Chemical (4204) Q4 2025 earnings summary

Executive summary

• FY 2024 achieved record net sales of JPY 1,297.8 billion and operating profit of JPY 108 billion, both exceeding forecasts and surpassing JPY 100 billion in operating profit for the first time; ROE was 10.2%.

• All profit levels surpassed forecasts despite weak global and housing markets, with growth driven by high value-added products, cost control, and favorable FX.

• FY 2025 targets further record highs in net sales and operating profit, with a planned dividend increase to JPY 80 per share, marking 16 consecutive years of dividend growth.

• Strategic investments focused on high-performance plastics, perovskite solar cells, and ESG initiatives, with capex exceeding midterm plan.

• Share buyback and cancellation of 4 million shares executed in FY 2024, with similar plans for FY 2025.

Financial highlights

• Net income reached a record JPY 81.9 billion, up JPY 4.0 billion year-on-year; gross profit margin improved to 32.4%.

• Operating cash flow was JPY 119.2 billion, with free cash flow at JPY 24.8 billion after dividends.

• EBITDA increased by JPY 14.6 billion to JPY 161.7 billion, a record high.

• Net interest-bearing liabilities were negative JPY 31.8 billion, maintaining a virtually debt-free status.

• Dividend per share increased to JPY 79, with a payout ratio above 40%.

Outlook and guidance

• FY 2025 guidance: net sales JPY 1,364.5 billion, operating profit JPY 115 billion, net profit JPY 82 billion, and dividend of JPY 80 per share.

• All segments except Housing are expected to achieve record high profits in FY 2025.

• CapEx for FY 2025 is planned at JPY 105 billion, including JPY 15 billion for the perovskite Sakai Plant.

• Company aims to manage risks from tariffs and FX volatility through pricing and operational efficiency.