Tokyo Ohka Kogyo (4186) Q2 2025 earnings summary

Executive summary

• Net sales rose 17.8% year-over-year to ¥111.6 billion in 1H FY2025, driven by strong demand for generative AI-related products and PC replacements.

• Operating income increased 47.6% year-over-year to ¥19.8 billion, with profit attributable to owners of parent up 49.0% to ¥13.6 billion.

• Upward revision of full-year forecasts, expecting record-high operating income and continued dividend growth.

• Launched "tok Medium-Term Plan 2027" targeting global leadership in photoresists and expansion in new business fields.

Financial highlights

• EBITDA for 1H FY2025 reached ¥23.99 billion, up 36.6% year-over-year.

• Ordinary income rose 44.4% year-over-year to ¥20.38 billion.

• Gross profit reached ¥41.15 billion, up from ¥33.43 billion year-over-year; gross margin improved.

• Basic earnings per share rose to ¥113.83 from ¥75.50 year-over-year.

• Extraordinary income included a ¥1.42 billion gain on receipt of contingent consideration.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥227.0 billion (+13.0% YoY), operating income at ¥40.0 billion (+20.9% YoY), and profit attributable to owners of parent at ¥26.5 billion (+16.8% YoY).

• Basic EPS for FY2025 projected at ¥220.99.

• Assumes continued strong demand for generative AI and new customer plant operations.

• Exchange rate assumption for 2H FY2025 revised to ¥140.0/$.

• Forecast revision reflects improved electronics industry outlook and strong interim results.