UBE (4208) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose 4.0% year-over-year to ¥486.8B, but operating profit fell 19.6% to ¥18.0B and net loss attributable to owners was ¥4.8B, mainly due to extraordinary losses and higher costs.

• Ordinary profit declined 38.4% to ¥22.4B, impacted by equity-method losses and extraordinary items.

• FY2025/FY2026 forecasts project net sales of ¥490.0B (+0.7%), operating profit of ¥25.0B (+38.5%), and net income of ¥27.5B, driven by segment reorganization and the LANXESS acquisition.

Financial highlights

• FY2024 operating profit declined by ¥4.4B year-over-year, with ordinary profit down ¥14.0B and a net loss of ¥4.8B due to extraordinary losses, including joint venture dissolution and asset impairments.

• EBITDA for FY2024 was ¥45.5B, with a forecast of ¥55.0B for FY2025 (+21.0%).

• Free cash flow turned negative at ¥-27.3B in FY2024, mainly due to increased capital investment and acquisition costs.

• Cash flows from operating activities dropped to ¥35.8B, while investing outflows increased to ¥63.2B.

• Net income per share dropped to -¥49.60 in FY2024, but is forecast to recover to ¥283.15 in FY2025.

Outlook and guidance

• FY2025/FY2026 guidance anticipates a strong recovery in profitability, with operating profit up 38.5% and net income returning to positive territory.

• Growth expected from Specialty Products, High Performance Urethanes (post-LANXESS acquisition), and recovery in Polymers & Chemicals.

• Segment reorganization introduces High Performance Urethanes and Pharmaceutical as new segments.

• Dividend forecast remains at ¥110 per share.