Tosoh (4042) Q4 2025 earnings summary

Executive summary

• Net sales rose to ¥1,063.4B, up 5.7% year-over-year, driven by higher demand, production, and favorable exchange rates.

• Operating income increased 23.9% to ¥98.9B, with gains across all major business segments.

• Income attributable to owners of parent grew to ¥58.0B, a slight increase from the previous year.

• Major capital projects include CO2 recovery equipment, production capacity expansions, and a planned biomass power plant.

• The company reorganized its R&D structure to enhance responsiveness to growth fields and digital transformation.

Financial highlights

• Ordinary income reached ¥103.0B, up 7.4% year-over-year; comprehensive income declined 15.5% to ¥77.5B.

• Capital expenditures increased to ¥81.2B; depreciation rose to ¥45.7B.

• Free cash flow declined to ¥24.7B from ¥57.0B due to higher investing cash outflows.

• Equity ratio improved to 62.3%; total assets increased to ¥1,327.3B.

• Cash and cash equivalents at year-end were ¥138.8B, down ¥10.1B from the previous year.

Outlook and guidance

• FY2026 forecast: net sales expected at ¥1,050.0B (down ¥13.4B), operating income at ¥108.0B (up ¥9.1B), and income attributable to owners of parent at ¥62.0B.

• Capital expenditures projected to rise to ¥89.0B; R&D expenses to ¥24.0B.

• Dividend forecast maintained at ¥100 per share, payout ratio expected at 51.4%.

• Assumptions include a domestic naphtha price of ¥61,000/kl and an exchange rate of ¥140/USD.