Tosoh (4042) Q3 2025 earnings summary

Executive summary

• Net sales for 1Q–3Q FY2025 rose to ¥795.7B, up 6.4% year-over-year, driven by higher sales volumes, a weaker yen, and increased naphtha prices.

• Operating income increased by 25.3% to ¥74.6B, ordinary income reached ¥82.5B, and profit attributable to owners of parent was ¥48.5B, all up year-over-year.

• All major business segments except 'Other' posted higher sales and operating income, with notable gains in Petrochemical and Chlor-alkali.

• Global economic conditions remained stable, but uncertainties persist due to weak demand in China and policy concerns in the US.

Financial highlights

• Capital expenditures increased by ¥20.9B to ¥65.2B; interest-bearing liabilities rose by ¥16.8B to ¥211.1B.

• Gross profit increased to ¥192.8B from ¥167.2B year-over-year; basic earnings per share rose to ¥152.37 from ¥129.95.

• Total assets reached ¥1,325.4B, net assets increased to ¥880.6B, and equity ratio improved to 61.3%.

• Cash and cash equivalents at end of period decreased by ¥7.2B to ¥128.0B; free cash flow turned negative at -¥16.9B due to higher investing cash outflows.

Outlook and guidance

• FY2025 net sales forecast at ¥1,070.0B, down from previous forecast; operating income forecast raised to ¥98.0B, and net profit at ¥61.0B.

• Basic earnings per share forecast raised to ¥191.55; dividend forecast increased to ¥100 per share, payout ratio projected at 52.2%.

• Ordinary income and profit attributable to owners of parent expected to surpass previous forecasts due to strong water treatment and FX gains.

• Sales volumes expected to decline amid weak Chinese economy and slow semiconductor recovery.