Shin-Etsu Chemical (4063) Q2 2025 earnings summary

Executive summary

• Net sales rose 5.9% year-over-year to ¥1,266.4 billion for the first half ended September 30, 2024, with operating income up 6.2% to ¥405.7 billion and ordinary income up 3.6% to ¥442.9 billion.

• Net income attributable to owners of parent declined 2.4% year-over-year to ¥294.1 billion, mainly due to a temporary increase in tax expenses from dividends of overseas subsidiaries.

• Comprehensive income increased to ¥665.0 billion from ¥545.3 billion, reflecting strong foreign currency translation gains.

• The company maintained its full-year forecast, expecting net sales of ¥2,500.0 billion and net income attributable to owners of parent of ¥533.0 billion.

Financial highlights

• Gross profit increased to ¥518.9 billion from ¥484.5 billion year-over-year.

• Net assets rose to ¥4,886.2 billion, with a stockholders' equity ratio of 83.3%.

• Net income per share was ¥147.83, down from ¥149.65 year-over-year.

• Cash and time deposits increased to ¥1,814.5 billion, while total assets reached ¥5,636.0 billion.

• Net cash provided by operating activities was ¥451.9 billion, but free cash flow was negative due to large investments and treasury stock purchases.

Outlook and guidance

• Full-year net sales forecast is ¥2,500.0 billion, up 3.5% year-over-year; operating income forecast is ¥735.0 billion, up 4.8%.

• Net income per share forecast is ¥268.00, with annual dividends expected to rise to ¥106 per share.

• The company will continue capital investments and product development to meet customer and market needs.