Chugoku Marine Paints (4617) Q4 2025 earnings summary

Executive summary

• Net sales and all profit categories reached record highs for the second consecutive year, driven by price optimization, strong marine coatings demand, and a weak yen.

• Profitability improved due to selling price revisions and increased sales of high-value-added products, especially in South Korea and Southeast Asia.

• Extraordinary gain of ¥2.5 billion recorded from the sale of Shanghai No. 2 Factory, partially offset by a ¥928 million impairment loss.

Financial highlights

• Net sales rose 12.9% year-over-year to ¥131,152 million; operating profit up 26.2% to ¥15,381 million.

• Gross margin increased by 2.1pt to 32.5%; profit attributable to owners of parent up 38.7% to ¥13,721 million.

• Earnings per share increased 38.7% year-over-year to ¥276.78.

• Cash and cash equivalents at year-end reached ¥32,174 million, up ¥4,469 million from previous year.

• Annual dividend per share raised to ¥97; payout ratio 35%.

Outlook and guidance

• Next fiscal year net sales forecasted to grow 1.4% to ¥133,000 million; operating profit to rise 4.0% to ¥16,000 million.

• Profit attributable to owners of parent expected to decline 19.8% due to absence of extraordinary gain and higher tax expenses.

• Annual dividend forecast maintained at ¥97 per share.

• Sales of new ship coatings projected to decrease, while ship repair and industrial coatings are expected to grow.

• Minimal impact anticipated from higher US tariffs.