Kureha Corporation (4023) Q4 2025 earnings summary

Executive summary

• FY2024 revenue declined 9.0% year-over-year to ¥162.0bn, with operating profit down 26.3% to ¥9.4bn and net profit attributable to owners at ¥7.8bn, driven by weak PVDF, PGA, and agrochemicals, inventory valuation losses, and discontinued products.

• FY2025 is forecasted to see a recovery, with revenue rising to ¥165.0bn and operating profit to ¥14.0bn, driven by improved PVDF and PGA business conditions and the absence of one-time losses.

• Dividend policy shifts to a DOE-based approach targeting 5% for FY2025–FY2026, with dividend per share expected to be about 2.5 times higher and continued share buybacks of approximately ¥15bn planned.

• Comprehensive income fell sharply to ¥7,666 million from ¥21,649 million the prior year.

Financial highlights

• FY2024 revenue fell by ¥16.0bn year-over-year; core operating profit dropped by ¥8.6bn to ¥10.0bn.

• Net profit attributable to owners was ¥7.8bn, down ¥1.9bn from FY2023.

• EBITDA for FY2024 was ¥22.1bn, a decrease of ¥2.3bn year-over-year.

• FY2025 forecasts revenue at ¥165.0bn (+¥3.0bn YoY), operating profit at ¥14.0bn (+¥4.6bn YoY), and net profit at ¥10.0bn (+¥2.2bn YoY).

• Basic earnings per share decreased to ¥149.67 from ¥173.03.

Outlook and guidance

• FY2026 revenue is forecast at ¥165.0bn (+1.8%), with operating profit expected to rise 48.5% to ¥14.0bn and net profit up 28.2% to ¥10.0bn.

• PVDF business expected to return to profitability in FY2025, supported by ESS application growth and no inventory valuation loss.

• PGA business to narrow losses with a projected 30% revenue increase as market recovers in mid- to high-temperature regions.

• ROE forecasted to improve to 4.9% in FY2025 from 3.6% in FY2024.

• Assumed exchange rates: ¥145/USD, ¥160/EUR, ¥20/CNY.