Sekisui Chemical (4204) Q4 2026 earnings summary

Executive summary

• FY 2025 net sales reached a record high of JPY 1,309.3 billion, with operating profit at JPY 106.5 billion, impacted by weak market conditions and one-off expenses; ordinary profit rose to JPY 117.2 billion, mainly from FX gains, while net profit was JPY 75.2 billion, affected by impairment losses.

• FY 2026 targets further growth in net sales and operating profit, with a focus on high-value-added products and improved profitability across all segments.

• Continued commitment to shareholder returns, with annual dividend increases for 17 consecutive years and plans for further hikes.

• Comprehensive income surged to JPY 117.2 billion, reflecting significant FX and benefit plan gains.

Financial highlights

• FY 2025: Net sales JPY 1,309.3 billion (+JPY 11.5 billion YoY); operating profit JPY 106.5 billion (-JPY 1.5 billion YoY); ordinary profit JPY 117.2 billion (+JPY 6.3 billion YoY); net profit JPY 75.2 billion (-JPY 6.8 billion YoY).

• EBITDA reached a record high of JPY 164.6 billion, increasing by JPY 2.9 billion YoY.

• Cash flows from operating activities: JPY 78.3 billion (down JPY 40.9 billion YoY); free cash flow was a cash outflow of JPY 26.4 billion.

• Dividend per share increased to JPY 80 in FY 2025 (+JPY 1 YoY), with a payout ratio of 43.6%.

• Total return ratio in FY 2025: 92%.

Outlook and guidance

• FY 2026 plan projects net sales of JPY 1,408.4 billion (+JPY 91.1 billion YoY), operating profit of JPY 115 billion (+8.0%), and net profit forecast at JPY 76 billion.

• Ordinary profit expected to decline due to absence of prior year FX gains.

• ROE projected at 9.0% for FY 2026.

• Dividend forecast for FY 2026 is JPY 81 per share, marking the 17th consecutive year of increases.

• Company plans to expand high-value-added businesses, commercialize film-type perovskite solar cells, and mitigate raw material procurement risks.