UBE Corporation (4208): FY2025 Results Summary — Return to Net Profit on Higher Ordinary Profit

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UBE Corporation (4208) announced its consolidated results for FY2025 (the fiscal year ended March 31, 2026) on May 13, 2026. Net sales declined 5.0% to 462.3 billion yen, while operating profit rose 5.0% to 18.9 billion yen and ordinary profit jumped 67.7% to 37.5 billion yen. Profit attributable to owners of parent returned to the black at 23.9 billion yen, compared with a loss of (4.8) billion yen in FY2024. Starting from FY2025, the company revised its reporting structure from four segments to six, newly establishing the High Performance Urethane and Pharmaceutical segments.

Consolidated Results (Full-Year Actual)

Net sales decreased 24.5 billion yen year on year, mainly reflecting sluggish sales of nylon polymers and caprolactam in Polymers & Chemicals and the exclusion of the steel products business from the scope of consolidation in Machinery, partly offset by the acquisition of the urethane systems business in April 2025. Operating profit increased on lower depreciation expenses in Polymers & Chemicals following impairment losses on the ammonia, caprolactam, and nylon polymer businesses recognized in the previous fiscal year, the absence of large-scale maintenance at the ammonia plant, and a decline in raw material prices of elastomers. Ordinary profit was lifted by non-operating income of 18.6 billion yen, including share of profit of entities accounted for using the equity method of 15.4 billion yen and foreign exchange gains of 4.3 billion yen. Extraordinary losses narrowed to (6.8) billion yen from (33.3) billion yen in FY2024, and net income per share was 245.76 yen.

Item (Billions of yen)	FY2024	FY2025	Change	% Change
Net sales	486.8	462.3	(24.5)	(5.0)%
EBITDA	45.5	46.4	0.9	2.1%
Operating profit	18.0	18.9	0.9	5.0%
Ordinary profit	22.4	37.5	15.1	67.7%
Profit (loss) attributable to owners of parent	(4.8)	23.9	28.7	－
Net income per share	(49.60) yen	245.76 yen	295.36 yen	－

Segment Results

From FY2025, the segments were revised from the four segments of Specialty Products, Polymers & Chemicals, Machinery, and Others to six segments, adding High Performance Urethane (including the newly acquired urethane systems business and high-performance coatings) and Pharmaceutical. FY2024 figures reflect the reclassification. High Performance Urethane sales surged 198.1% on the urethane systems business acquired in April 2025, which contributed nine months of results (April through December) because the companies engaged in this business have a December fiscal year-end; the segment posted an operating loss of (0.5) billion yen after post-merger integration expenses. Polymers & Chemicals swung to an operating profit of 8.2 billion yen from a loss of (0.7) billion yen, helped by lower depreciation following the prior year’s impairment losses and the absence of large-scale biennial maintenance at the ammonia plant. Specialty Products profit fell on weak sales of polyimide, separation membranes, and ceramics, and Pharmaceutical turned to a loss on lower contract pharmaceutical volumes.

Segment	Metric (Billions of yen)	FY2024	FY2025	Change
Specialty Products	Net sales	66.2	61.9	(4.3)
High Performance Urethane	Net sales	15.6	46.5	30.9
Pharmaceutical	Net sales	31.5	21.0	(10.5)
Polymers & Chemicals	Net sales	273.6	251.2	(22.3)
Machinery	Net sales	86.9	68.4	(18.5)
Others	Net sales	39.2	34.5	(4.7)
Adjustment	Net sales	(26.1)	(21.2)	4.9
Total	Net sales	486.8	462.3	(24.5)
Specialty Products	Operating profit	11.7	9.8	(1.9)
High Performance Urethane	Operating profit	(0.2)	(0.5)	(0.3)
Pharmaceutical	Operating profit	1.2	(1.3)	(2.4)
Polymers & Chemicals	Operating profit	(0.7)	8.2	8.9
Machinery	Operating profit	7.9	6.2	(1.6)
Others	Operating profit	2.1	1.9	(0.1)
Adjustment	Operating profit	(3.8)	(5.4)	(1.6)
Total	Operating profit	18.0	18.9	0.9

FY2026 Forecast

For FY2026, UBE forecasts net sales of 485.0 billion yen (up 4.9%), EBITDA of 56.5 billion yen (up 21.8%), operating profit of 23.5 billion yen (up 24.1%), ordinary profit of 37.5 billion yen (flat), and profit attributable to owners of parent of 24.5 billion yen (up 2.6%). Growth is expected to be driven by higher sales volumes of polyimide, separation membranes, and separators in Specialty Products and a full twelve months of contribution from the urethane systems business in High Performance Urethane. Note that from FY2026, UBE America Inc. has been reclassified from Polymers & Chemicals to Specialty Products, and FY2025 segment figures below are presented as reference figures assuming the new classification. The company assumes an exchange rate of 145.0 yen per dollar and domestic naphtha of 82,500 yen per kiloliter for FY2026.

Item (Billions of yen)	FY2025 (Actual)	FY2026 (Forecast)	Change	% Change
Net sales	462.3	485.0	22.7	4.9%
EBITDA	46.4	56.5	10.1	21.8%
Operating profit	18.9	23.5	4.6	24.1%
Ordinary profit	37.5	37.5	(0.0)	(0.0)%
Profit attributable to owners of parent	23.9	24.5	0.6	2.6%
Net income per share	245.76 yen	252.20 yen	6.44 yen	－

Segment	Metric (Billions of yen)	FY2025 (reference)	FY2026 (Forecast)	Change
Specialty Products	Net sales	71.0	89.0	18.0
High Performance Urethane	Net sales	46.5	68.0	21.5
Pharmaceutical	Net sales	21.0	21.0	(0.0)
Polymers & Chemicals	Net sales	248.8	239.0	(9.8)
Machinery	Net sales	68.4	70.0	1.6
Others	Net sales	34.5	36.0	1.5
Adjustment	Net sales	(27.9)	(38.0)	(10.1)
Total	Net sales	462.3	485.0	22.7
Specialty Products	Operating profit	9.9	15.0	5.1
High Performance Urethane	Operating profit	(0.5)	1.0	1.5
Pharmaceutical	Operating profit	(1.3)	0.5	1.8
Polymers & Chemicals	Operating profit	8.0	5.0	(3.0)
Machinery	Operating profit	6.2	4.5	(1.7)
Others	Operating profit	1.9	1.5	(0.4)
Adjustment	Operating profit	(5.3)	(4.0)	1.3
Total	Operating profit	18.9	23.5	4.6

Shareholder Returns

The annual dividend for FY2025 is 110.00 yen per share (interim 55 yen, fiscal year-end 55 yen), the same level as FY2024. Under the current medium-term management plan’s 2nd Stage (FY2025-2030), the group maintains a stable dividend as a basic policy, setting the dividend on equity (DOE) at 2.5% or higher, and aims to further raise the DOE during the latter three years, aiming for progressive dividends. The company states it is currently reviewing its dividend policy, including the DOE level, with a view to improving capital efficiency and enhancing shareholder returns; accordingly, the annual dividend forecast for FY2026 has not yet been determined and is planned to be announced on May 20, 2026, at the Management Overview Briefing.

Item	FY2024	FY2025	FY2026 (Forecast)
Dividend per share	110 yen	110 yen (Scheduled)	to be determined

Topics: Response to TSE’s Request on Cost of Capital and Stock Price

UBE estimates its cost of equity at around 8% based on the capital asset pricing model, while the market cost of equity is currently approximately 12% (equivalent to a PER of around 8.5x). To grow profit and improve profitability, the company is expanding specialty businesses: polyimide film manufacturing capacity is up 20% with commercial operation started in November 2025, separation membrane (hollow-fiber and module) capacity is up 80% with commercial operation started in April 2026, ceramics capacity is up 50%, separators capacity is up 30%, and a DMC/EMC plant is under construction in the U.S. for C1 chemicals. The urethane systems business was acquired on April 1, 2025. In business restructuring, caprolactam production in Thailand was shut down and nylon polymer production in Thailand was reduced in March 2026 (both finished); in Japan, caprolactam and nylon polymer production shutdowns are scheduled for March 2027 and an ammonia production shutdown for March 2028. Consolidated key indicators for FY2025 include ROE of 5.7%, ROIC of 3.8%, a D/E ratio of 0.82 times, and a shareholders’ equity ratio of 46.2%; for FY2026 the company plans capital investment of 85.0 billion yen.

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.