Toho Zinc Co (5707) Q4 2025 earnings summary

Executive summary

• FY2024 revenue was 126.3 billion yen, with EBITDA of 8.2 billion yen and net income of -1.5 billion yen, all profit indicators improved year-over-year and exceeded FY2023.

• Operating profit turned positive at 5.6 billion yen, up 6.3 billion yen from the previous year, driven by higher metals prices and yen depreciation.

• Business revitalization plan launched in December 2024, focusing on reorganization/withdrawal from unprofitable businesses and growth in core segments.

• Capital increase of 7.5 billion yen completed in March 2025, securing liquidity for the revitalization period.

• Extraordinary income included 2.7 billion yen gain on sale of subsidiaries; extraordinary losses included 7.8 billion yen from zinc smelting facility shutdown and restructuring.

Financial highlights

• FY2024 revenue: 126.3 billion yen; EBITDA: 8.2 billion yen; net income: -1.5 billion yen.

• All profit indicators significantly exceeded FY2023, with net income slightly above forecast.

• Gross profit increased to 13.2 billion yen from 8.4 billion yen year-over-year.

• Net assets rose to 10.1 billion yen (equity ratio 10.2%) from 2.7 billion yen (2.5%) last year, mainly due to capital increase.

• Cash and cash equivalents at year-end were 21.0 billion yen, up from 13.4 billion yen.

Outlook and guidance

• FY2025 forecast: revenue 115.7 billion yen, EBITDA 7.1 billion yen, net income 3.0 billion yen, with further improvement expected from increased lead and silver production.

• FY2026 forecast: net sales 115.7 billion yen, operating profit 4.9 billion yen, ordinary profit 4.1 billion yen, net income 3.0 billion yen.

• Revenue expected to decline due to zinc smelting reorganization, but net income to rise significantly.

• By FY2029, target of 7.4 billion yen in ordinary income and foundation for sustained growth beyond FY2030.

• Business Revitalization Plan aims to complete withdrawal from unprofitable businesses and strengthen core/growth segments over five years.