UBE (4208) Q2 2025 earnings summary

Executive summary

• Net sales rose 11.4% year-over-year to ¥243.0 billion for the first half of FY2024, driven by higher overseas sales and increased prices in Polymers & Chemicals.

• Operating profit increased 15.9% year-over-year to ¥6.0 billion, supported by robust sales in Polymers & Chemicals and Machinery.

• Ordinary profit dropped 83.2% to ¥1.9 billion, and profit attributable to owners of parent fell 96.5% to ¥0.3 billion, mainly due to losses from the dissolution of an equity-method affiliate.

• Comprehensive income turned negative at ¥(2.98) billion, compared to ¥24.9 billion in the prior year period.

• Growth in Polymers & Chemicals and Machinery segments offset declines in Specialty Products and Others.

Financial highlights

• Net sales: ¥243.0 billion (+11.4% year-over-year); Operating profit: ¥6.0 billion (+15.9%); Ordinary profit: ¥1.9 billion (–83.2%); Profit attributable to owners of parent: ¥0.3 billion (–96.5%).

• Net income per share: ¥3.28, down from ¥92.93 year-over-year.

• Free cash flow turned negative at ¥-26.8 billion due to increased investing activities.

• Gross profit increased to ¥41.1 billion from ¥38.1 billion year-over-year.

• Adjusted operating profit fell to ¥5.3 billion from ¥11.8 billion year-over-year.

Outlook and guidance

• Full-year FY2024 net sales forecast at ¥510.0 billion, with operating profit projected at ¥27.0 billion.

• Progress rates for net sales and operating profit at 47.7% and 22.4% respectively after H1.

• ROE forecasted around 7% for FY2024, with a focus on expanding specialty businesses and improving profitability.

• Annual dividend forecast raised to ¥110 per share.

• Full-year profit attributable to owners of parent forecast at ¥29.5 billion, EPS ¥303.89.