Tokyo Ohka Kogyo (4186) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months ended September 30, 2025, rose 17.9% year-over-year to 172.8 billion yen, driven by strong demand for generative AI-related products, PC replacements, and semiconductors, offsetting weak smartphone growth.

• Operating income increased 37.2% year-over-year to 31.9 billion yen, reflecting higher sales and improved product mix.

• Profit attributable to owners of parent surged 41.1% year-over-year to 22.1 billion yen, aided by extraordinary income from a gain on contingent consideration related to an equipment business transfer.

• The company launched a new three-year medium-term plan aiming for global leadership in photoresists and expansion in all business fields.

Financial highlights

• Net sales: 172.8 billion yen (up 17.9% YoY); operating income: 31.9 billion yen (up 37.2% YoY); ordinary income: 32.8 billion yen (up 36.3% YoY); EBITDA: 38.2 billion yen (up 29.9% YoY).

• Gross profit for the first nine months was 64.4 billion yen, up from 53.0 billion yen year-over-year.

• Basic earnings per share for the period was 184.28 yen, up from 129.08 yen in the prior year.

• Comprehensive income rose 40.7% year-over-year to 24.9 billion yen.

• Electronic functional materials sales grew 14.9% YoY; high-purity chemicals up 21.2% YoY.

Outlook and guidance

• Full-year net sales forecast at 227.0 billion yen (up 13.0% YoY); operating income forecast at 40.0 billion yen (up 20.9% YoY), both expected to reach record highs.

• Profit attributable to owners of parent is forecast at 26.5 billion yen, with basic EPS of 220.99 yen.

• Continued strong demand anticipated for generative AI and new customer plant operations.

• Exchange rate assumption for 2H 2025: ¥140.0/$.

• Dividend policy targets 4.0% DOE; annual dividend forecasted at 70 yen, marking eight consecutive years of growth.