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Toagosei (4045) Q2 2025 earnings summary

Event summary combining transcript, slides, and related documents.

Logotype for Toagosei Co Ltd

Q2 2025 earnings summary

10 Mar, 2026

Executive summary

  • Net sales, operating income, ordinary profit, and net income attributable to owners of parent all declined year-over-year for 1H FY2025 amid a challenging global economic environment and sluggish demand in key markets.

  • The business environment was impacted by global economic slowdown concerns, U.S. tariff policies, and geopolitical risks, though Japan saw a gradual recovery.

  • Sales volume of commodity chemicals decreased, with overseas acrylic ester markets remaining weak; high-purity inorganic chemicals for Al saw strong demand but overall sales volume fell.

  • Environmental & infrastructure system products improved profit due to higher sales volume and price revisions.

  • Annual dividend for FY2025 is planned at 65 yen per share, up from 60 yen in the previous year.

Financial highlights

  • 1H FY2025 net sales: ¥80,344 million (down 1.5% year-over-year); operating income: ¥7,018 million (down 4.2%); ordinary profit: ¥7,497 million (down 14.4%); net income attributable to owners of parent: ¥5,715 million (down 18.8%).

  • Gross profit increased slightly to ¥22,974 million, but comprehensive income dropped 66.5% year-over-year to ¥4,343 million.

  • Net income per share: ¥51.76 (down 15.9% year-over-year).

  • Cash flows from operating activities increased to ¥16,678 million, but free cash flow turned negative at ¥-634 million due to higher investment outflows.

  • Cash and cash equivalents at period end: ¥30,534 million (down ¥9,898 million from prior year-end).

Outlook and guidance

  • FY2025 full-year forecast: net sales ¥162,500 million (down ¥5,094 million year-over-year), operating income ¥14,000 million (down ¥233 million), net income attributable to owners of parent ¥12,200 million (up ¥323 million).

  • Extraordinary income expected to rise significantly in 2H FY2025.

  • Uncertainty remains high due to U.S. tariff policy details and ongoing geopolitical risks.

  • Focus on profit growth from mobility and semiconductor-related products, restructuring US instant glue business, and expanding Asian overseas sales.

  • Management aims to achieve a PBR of 1x or more.

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