Sumitomo Seika Chemicals (4008) Q4 2025 earnings summary

Executive summary

• Net sales increased 3.2% year-over-year to ¥147.6B, with operating profit up 12.4% to ¥10.7B and ordinary profit up 8.4% to ¥11.1B, driven by favorable FX and higher super absorbent polymer sales.

• Profit attributable to owners of parent declined 3.3% to ¥6.0B due to extraordinary losses from product price mischarging and impairment losses in Functional Materials.

• Basic earnings per share were ¥450.62, and ROE was 6.3%.

Financial highlights

• Gross profit increased to ¥30,681 million from ¥28,007 million year-over-year.

• Comprehensive income dropped to ¥2,880 million from ¥12,056 million, mainly due to negative FX translation adjustments.

• Cash and cash equivalents at year-end were ¥16,099 million, down ¥4,842 million from the prior year.

• Net sales rose to ¥147.6B, up 3.2% from FY2023.

• Operating profit increased 12.4% to ¥10.7B year-over-year.

Outlook and guidance

• FY2025 forecasts: net sales ¥145.0B (down 1.7%), operating profit ¥9.0B (down 16%), ordinary profit ¥9.2B (down 17.2%), profit attributable to owners ¥6.7B (up 12.4%), and EPS ¥506.45.

• ROE projected to improve to 6.9%, while ROIC is expected to decrease to 5.7%.

• Forecast assumes a stronger yen and lower naphtha prices; super absorbent polymers expected to grow in volume, but IR Latex business termination will weigh on results.