Fujibo Holdings (3104): FY2025 Results Summary — Record Operating and Net Profit on AI-Driven Polishing Pad Demand

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Fujibo Holdings, Inc. reported record-high operating profit and net profit for FY2025. Net sales rose 7.0% year on year to 45,929 million yen, operating profit gained 25.7% to 8,143 million yen, and net profit attributable to owners of parent increased 25.4% to 5,612 million yen. Growth was led by the Polishing Pad Business, where orders were firm against a backdrop of increased investment demand for advanced semiconductors used in AI-related applications and data centers, and by the Industrial Chemicals Business, where orders were strong in fields with high growth potential such as electronic materials and high-performance resins. ROIC reached 11.5%, up 2.4 points year on year.

Consolidated Results (Full-Year Actual)

All of net sales, operating profit, ordinary profit and net profit increased year on year. EBITDA rose 16.0% to 11,413 million yen. Extraordinary profit or loss deteriorated to ▲730 million yen from ▲36 million yen in FY2024, which held the increase in profit before income taxes to 14.9%.

Item (JPY Mil)	FY2025	FY2024	Change
Net Sales	45,929	42,912	+3,016 (+7.0%)
Operating Profit	8,143	6,476	+1,667 (+25.7%)
Non-operating profit or loss	+212	+198	+14
Ordinary Profit	8,356	6,675	+1,681 (+25.2%)
Extraordinary profit or loss	▲730	▲36	▲693
Profit before Income Taxes	7,626	6,638	+988 (+14.9%)
Corporation tax and others	2,013	2,161	▲147
Net Profit (attributable to owners of parent)	5,612	4,477	+1,135 (+25.4%)
EBITDA	11,413	9,841	+1,571 (+16.0%)

The company’s breakdown of the 1,667 million yen year-on-year increase in operating profit shows volume contributing +2,670 million yen and sales price +176 million yen, against cost of sales ▲545 million yen, expenses ▲386 million yen, raw material and fuel prices ▲198 million yen and foreign exchange ▲50 million yen.

Segment Results

Polishing Pad and Industrial Chemicals both grew sales and profit, while Lifestyle Apparel and Other declined on both lines. In Polishing Pad, demand for advanced logic semiconductors increased due to the rapid uptake of generative AI, silicon wafer applications secured a certain level of sales on strong demand for advanced product applications, LCD glass panel demand was strong owing to China’s subsidy policies, and hard disk demand for data center applications continued. In Industrial Chemicals, the electronic materials market including semiconductors saw favorable conditions, agricultural chemical intermediates showed a moderate recovery trend, and both the Yanai and Takefu plants operated at high levels of capacity utilization. In Lifestyle Apparel, the business climate remained challenging, reflecting the impacts of increased personnel expenses, surging costs and the weak yen, together with the discontinuation of production lines for synthetic fibers and stainless fibers.

Segment	Metric (JPY Mil)	FY2025	FY2024	Change
Polishing Pad	Net Sales	22,561	19,307	+3,253
Industrial Chemicals	Net Sales	14,113	13,474	+638
Lifestyle Apparel	Net Sales	6,323	6,967	▲643
Other	Net Sales	2,930	3,162	▲231
Total	Net Sales	45,929	42,912	+3,016
Polishing Pad	Operating Profit	6,385	4,729	+1,655
Industrial Chemicals	Operating Profit	1,417	1,217	+200
Lifestyle Apparel	Operating Profit	438	586	▲148
Other	Operating Profit	▲98	▲57	▲40
Total	Operating Profit	8,143	6,476	+1,667

FY2026 Forecast

For FY2026 the company forecasts increases in both sales and profit, with net sales of 52,700 million yen (+14.7%) and operating profit of 9,200 million yen (+13.0%). The expansion trend in AI-related investment is expected to continue in Polishing Pad, and growth in the electronic materials market including semiconductors is expected to continue in Industrial Chemicals, with firm demand forecast primarily for functional materials. Regarding the external environment, the company states that there is currently no change in customer demand in each business; while there is some concern about procuring raw materials and fuel, these can be secured for the moment, and the company is pursuing diversification of suppliers and passing on price increases to customers. Due to timing differences in passing on price increases, operating profit is expected to decline by approximately 5% in the Polishing Pad Business and approximately 10% in the Industrial Chemicals Business.

Item	FY2025 Actual	FY2026 Mid-term Forecast	FY2026 Full-Year Forecast	Change vs FY2025
Net Sales (JPY Mil)	45,929	26,000	52,700	+6,770 (+14.7%)
Operating Profit (JPY Mil)	8,143	4,400	9,200	+1,056 (+13.0%)
Net Profit attributable to owners of parent (JPY Mil)	5,612	3,000	6,300	+687 (+12.2%)
EBITDA (JPY Mil)	11,413	6,451	13,447	+2,034 (+17.8%)
ROE	11.3%	>10%	>10%	—
ROIC	11.5%	>10%	>10%	—
Net Profit Per share (JPY)	165.94	88.97	186.85	—
Dividend Per share (JPY)	60	39	78	—

The company conducted a three-for-one stock split of its common shares on April 1, 2026, and per-share figures for previous years are also indicated based on the figures following the stock split.

Segment (JPY Mil)	Net Sales FY2026E	Net Sales FY2025	Operating Profit FY2026E	Operating Profit FY2025
Polishing Pad	24,500	22,561	7,000	6,385
Industrial Chemicals	18,300	14,113	1,700	1,417
Lifestyle Apparel	6,000	6,323	300	438
Other	3,900	2,930	200	▲98

Shareholder Returns

The annual dividend for FY2025 was 180 yen per share, consisting of an interim dividend of 75 yen and a year-end dividend of 105 yen, equivalent to 60 yen after the three-for-one stock split conducted on April 1, 2026. Total dividends rose to 2,024 million yen in FY2025 from 1,474 million yen in FY2024, with DOE (total dividends divided by shareholders’ equity) of 4.5%. For FY2026 the company forecasts an annual dividend of 78 yen per share on a post-split basis, comprising an interim dividend of 39 yen, and total dividends of 2,629 million yen. As an action to implement management conscious of the cost of capital and stock price, the company raised its dividend payout ratio from 35% to 40% in FY2026 and states that it is considering further enhancement of its shareholder return policy.

Under its FY2026 cash allocation plan, cash-in comprises net profit plus depreciation and other items of 10.5 billion yen and a withdrawal of cash and deposits of 0.5 billion yen. Cash-out comprises CAPEX of 8 billion yen — R&D 4.2 billion yen, expansion of production capacity 2 billion yen and maintenance and other items 1.8 billion yen — shareholder return of 2.4 billion yen and others of 0.6 billion yen.

Capital Efficiency and Financial Position

ROE was 11.3% and ROIC 11.5% in FY2025, compared with 9.8% and 9.1% respectively in FY2024. The company notes that profit growth exceeded its forecast and surpassed its 10% target, and that it will continue to pursue profit growth while enhancing balance sheet control with the aim of achieving further increases exceeding 10%. Year-end net assets were 51.6 billion yen, the year-end stock price was 10,940 yen (before the split) and PBR was 2.38 times, versus 1.18 times a year earlier; the company attributes the improvement to strong performance, enhanced shareholder returns and strengthened information disclosure including the creation and announcement of a new medium-term management plan. Total assets stood at 71,816 million yen as of March 2026 with a capital adequacy ratio of 72.0% and interest-bearing debt of 224 million yen. Operating cash flow was 10.1 billion yen, investing cash flow ▲6.1 billion yen, financing cash flow ▲2.6 billion yen and free cash flow 4.0 billion yen.

Medium-Term Management Plan “Shinka 26-30”

FY2025 was the final year of the previous plan “Zokyo 21-25”. Against plan targets of 60 billion yen in net sales and 10 billion yen in operating profit, results were 45.9 billion yen and 8.1 billion yen, while the operating profit margin of 17.7% exceeded the 16.7% target and both ROE and ROIC surpassed the “>10%” targets. Cumulative CAPEX for FY2021-2025 was 23.2 billion yen against a target of 15 billion yen, including 11.4 billion yen in Polishing Pad and 9.6 billion yen in Industrial Chemicals, while M&As and similar investments totalled 1.4 billion yen against a target of 10-15 billion yen and depreciation was 16.3 billion yen against a target of 15 billion yen.

The new plan “Shinka 26-30” targets operating profit of 11 billion yen on net sales of 59 billion yen in FY2028 and 13 billion yen on 65 billion yen in FY2030, positioned as solidifying the base for exponential growth toward a FY2035 target of 20 billion yen in operating profit on 100 billion yen in net sales, with the aim of evolving into a global No. 1 company in a niche segment. The plan is built on “Shinka” of the business base — evolution of the business portfolio and creating more innovation through new businesses and a strengthened R&D and IP strategy — and of the functional base, covering the HR management system, DX for manufacturing and operational processes, and the management base and financial strategies. On sustainability, the company has set a GHG reduction target of 30% by FY2030 versus 2022 and effectively zero by FY2050.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.