Rasa Industries (4022): FY2025 Results Summary — Second Straight Record Profit on Semiconductor-Grade Phosphoric Acid

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Rasa Industries, Ltd., which operates in Chemicals, Electronic Materials and Machinery and says it holds the global top market share in high-purity phosphoric acid (etching solutions) for semiconductors, reported FY2025 (year ended March 31, 2026) net sales of 47,727 million yen (+5.1% YoY) and operating profit of 6,012 million yen (+26.9%). The company states that operating profit rose mainly due to continued strong performance of semiconductor-related products, particularly for overseas markets and compound semiconductors, and that a record-high profit was achieved for the second consecutive fiscal year. For FY2026, it forecasts net sales of 54,000 million yen and operating profit of 6,200 million yen, with an annual dividend of 36 yen per share.

Consolidated Results (FY2025 Actual)

Net sales increased 5.1% overall, as sales increased in Chemicals and Electronic Materials but decreased in Machinery and Others. Operating profit rose 26.9% to 6,012 million yen, ordinary profit rose 34.5% to 6,191 million yen, and profit attributable to owners of parent rose 39.2% to 4,359 million yen. All four lines exceeded the revised FY2025 forecast (net sales 47,700 million yen, operating profit 5,800 million yen, ordinary profit 6,000 million yen, profit attributable to owners of parent 4,200 million yen). ROE improved from 11.9% to 14.6%. Non-operating income increased to 519 million yen from 242 million yen.

Item (millions of yen)	FY2024 (Apr.-Mar.)	FY2025 (Apr.-Mar.)	Change	Change Rate	Revised FY2025 Forecast
Net sales	45,421	47,727	2,305	5.1%	47,700
Operating profit	4,736	6,012	1,276	26.9%	5,800
Ordinary profit	4,602	6,191	1,589	34.5%	6,000
Profit attributable to owners of parent	3,131	4,359	1,228	39.2%	4,200
ROE	11.9%	14.6%	2.7%	―	―
(Depreciation)	1,794	1,781	(13)	(0.8%)	―

On the balance sheet, total assets were 49,973 million yen as of March 31, 2026 (up 4,135 million yen), total net assets were 31,840 million yen, and the equity ratio rose from 60.8% to 63.7%. Net cash provided by operating activities was 6,149 million yen, while purchase of property, plant and equipment increased to (4,373) million yen from (1,872) million yen.

Segment Results

Chemicals, which accounted for 83.7% of net sales, posted sales of 39,956 million yen (+4.7%) and segment operating profit of 5,531 million yen (+14.3%). In phosphorus products, sales of general products and high-purity products for domestic use were sluggish, but strong overseas sales of high-purity products for semiconductors offset the decline; flocculant products increased on strong sales of products for water supply, despite lower sales of products for etching electronic components. The company attributes the 690 million yen profit increase mainly to continued strong overseas sales of high-purity products for semiconductors and products for water supply. High-purity phosphoric acid sales (combined total of Japan (Osaka Factory) and the ROC consolidated subsidiary) were 16,796 million yen, or 35.2% of net sales.

Machinery sales declined 6.5% to 4,197 million yen, as unit sales of crushers and plants in construction machinery remained sluggish, while civil engineering machinery grew on strong rental demand for sewerage-related pipe jacking machines and higher overseas unit sales. Segment operating profit rose 240.3% to 405 million yen, mainly due to the absence of inventory valuation losses recorded in the previous fiscal year and higher sales of civil engineering machinery. Electronic Materials sales jumped 52.1% to 2,395 million yen as the compound semiconductor market remained strong, with sales of red phosphorus and indium increasing and gallium rising significantly, partly due to spot sales; segment operating profit rose 185.2% to 696 million yen.

Segment	Metric (millions of yen)	FY2024 (Apr.-Mar.)	FY2025 (Apr.-Mar.)	Change	Change Rate
Chemicals	Net sales	38,168	39,956	1,788	4.7%
Machinery	Net sales	4,491	4,197	(294)	(6.5%)
Electronic Materials	Net sales	1,574	2,395	820	52.1%
Others	Net sales	1,186	1,176	(9)	(0.8%)
Total	Net sales	45,421	47,727	2,305	5.1%
Chemicals	Operating profit	4,840	5,531	690	14.3%
Machinery	Operating profit	119	405	286	240.3%
Electronic Materials	Operating profit	244	696	452	185.2%
Others	Operating profit	764	746	(17)	(2.3%)
(Adjustments)	Operating profit	(1,232)	(1,367)	(134)	－
Total	Operating profit	4,736	6,012	1,276	26.9%

FY2026 Forecast

For FY2026, Rasa Industries forecasts net sales of 54,000 million yen (+13.1%), operating profit of 6,200 million yen (+3.1%), ordinary profit of 6,300 million yen (+1.7%) and profit attributable to owners of parent of 4,300 million yen (change of (59) million yen, (1.4%)). In Chemicals, high-purity phosphoric acid for semiconductors is expected to continue to perform strongly, mainly overseas, while domestic demand is also expected to recover. In Machinery, construction machinery is expected to recover in both unit sales and plant sales. In Electronic Materials, spot sales of gallium recorded in FY2025 will not recur, but slightly higher sales are expected with operating profit at the same level. Profit attributable to owners of parent is expected to decrease slightly due to expected extraordinary losses in the second half (slightly more than 100 million yen in loss on disposal of non-current assets). The assumed exchange rate is 155yen/USD.

Item (millions of yen)	FY2025 (Apr.-Mar.) Actual	FY2026 (Apr.-Mar.) Forecast	Change	Change Rate
Net sales	47,727	54,000	6,272	13.1%
Chemicals	39,956	45,000	5,043	12.6%
Machinery	4,197	5,300	1,102	26.3%
Electronic Materials	2,395	2,500	104	4.4%
Others	1,176	1,200	23	2.0%
Operating profit	6,012	6,200	187	3.1%
Chemicals	5,531	5,800	268	4.9%
Machinery	405	500	94	23.3%
Electronic Materials	696	700	3	0.5%
Others	746	700	(46)	(6.2%)
Adjustments	(1,367)	(1,500)	(132)	－
Ordinary profit	6,191	6,300	108	1.7%
Profit attributable to owners of parent	4,359	4,300	(59)	(1.4%)
Annual dividends per share	36yen	36yen	0yen	－

Shareholder Returns

The company conducted a five-for-one stock split of its common stock effective April 1, 2026; the dividend figures below are calculated assuming the split had been conducted. For FY2025, Rasa Industries plans a year-end dividend of 23.2 yen per share, an increase of 2 yen from its most recent forecast of 21.2 yen, which together with the interim dividend of 12.8 yen brings the annual dividend to 36 yen. The dividend payout ratio for FY2025 was 32.2%. For FY2026, it forecasts an annual dividend of 36 yen (interim dividend of 18 yen, year-end dividend of 18 yen). The company aims to further improve the dividend payout ratio while maintaining stable dividends, and has set targets of a dividend payout ratio of 30% or more and an ROE of 10% or more.

Dividend per share (split-adjusted)	Interim	Year-end	Annual
FY2025	12.8 yen	23.2 yen	36 yen
FY2026 (Forecast)	18 yen	18 yen	36 yen

Medium-Term Management Plan 2026 and Topics

Medium-Term Management Plan 2026 (FY2024 to FY2026) is positioned as the “plant seeds” phase toward the long-term vision “Rasa Vision 2033,” which targets consolidated net sales of 80,000 million yen, consolidated operating profit of 8,000 million yen, ROE of 10% or higher and ROIC of 10% or higher. The company states that in FY2025 the semiconductor-related market remained strong, results exceeded the plan, and the final-year profit target was also achieved. For the final year (FY2026), net sales are expected to exceed the initial plan by 3.8% and profit by around 30%, and ROE and ROIC are expected to exceed target levels for the third consecutive year. The company reports FY2025 ROE of 14.6% and ROIC of 12.2%, against targets of ROE 10% and ROIC 9%.

Item (millions of yen)	FY2026 Initial Plan	FY2024 Results	FY2025 Results	FY2026 Forecast
Net sales	52,000	45,421	47,727	54,000
Operating profit	4,800	4,736	6,012	6,200
Ordinary profit	4,800	4,602	6,191	6,300
Profit attributable to owners of parent	3,200	3,131	4,359	4,300
Total net assets	30,000	27,877	31,840	34,500

Among topics, expanded manufacturing facilities for high-purity phosphoric acid for semiconductors at the ROC consolidated subsidiary, Rasa Technology Taiwan Ltd., commenced operations in April 2026. The total investment is approximately 3 billion yen, with annual depreciation expense of approximately 400 million yen, raising Taiwan’s production capacity by 40%, and the facility is expected to contribute to sales from FY2026 2Q. The company also notes that its South Korean joint venture (an equity-method affiliate) is building a new U.S. factory, with completion slated for the first half of 2027, moving toward a four-country production system. In Electronic Materials, demand for indium phosphide (InP) for optical transceivers used in data center optical communications is increasing; the company manufactures indium, red phosphorus and boron trioxide used as raw materials for InP substrates and has strengths in indium recycling. In Machinery, it is developing a system that uses X-rays and AI to detect lithium-ion batteries mixed in waste, with a detection rate of 96% and a false detection rate of 3% based on its own tests.

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.