Toho Zinc Co (5707) Q4 2026 earnings summary

Executive summary

• FY2025 financial results exceeded forecasts, with strong profit growth and EBITDA around ¥8.1 billion, driven by higher silver prices and gains from asset sales after zinc smelting business reorganization.

• The business revitalization plan is progressing, achieving profitability in its first year and restoring EBITDA to pre-restructuring levels.

• Organizational restructuring, a new president, and a planned company name change are set to accelerate revitalization.

• The company meets all criteria for continued listing on the Tokyo Stock Exchange Prime Market.

• Net sales for FY ended March 31, 2026 were ¥125,550 million, down 0.6% year-over-year.

Financial highlights

• FY2025 net sales were ¥1,255.5 billion, nearly flat year-over-year due to offsetting effects of business withdrawal and higher silver prices.

• EBITDA reached ¥8.1 billion, up 33% from the February forecast, and profit was ¥4.8 billion, up 78%.

• Net income turned positive at ¥4.78 billion, a significant rebound from prior year losses.

• Ordinary income rose to ¥5.68 billion, up ¥1.99 billion year-over-year.

• Net assets rose to ¥13,668 million, with an equity-to-asset ratio of 13.8%.

Outlook and guidance

• FY2026 EBITDA is forecast to remain around ¥8.0 billion, with net sales expected to rise 42% to ¥1,785 billion.

• Operating profit expected at ¥6,700 million (down 0.3%), ordinary profit at ¥4,500 million (down 20.7%), and profit attributable to owners at ¥3,450 million (down 27.9%).

• Sensitivity analysis: every $1/toz increase in silver price adds ¥60 million to ordinary income; every ¥1 depreciation against USD adds ¥110 million.