ADEKA (4401): FY2025 Results Summary — Record Highs on All Profit Lines and a Dividend Increase to ¥112

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

ADEKA Corporation (TSE 4401) held its briefing on FY2025 financial results (the fiscal year ended March 31, 2026) and on the progress of its medium-term management plan “ADX 2026” on May 28, 2026. Net sales, operating profit, ordinary profit, and profit attributable to owners of parent all surpassed previous record highs. The annual dividend for FY2025 will be 112 yen per share, with the year-end dividend increased by 8 yen year on year to 60 yen per share. For FY2026, the company aims to achieve growth in sales and profit (to record highs) for the third consecutive fiscal year, with profit projected to increase in all segments.

Consolidated Results (Full-Year Actual)

Net sales rose 2.3% year on year to 416.5 billion yen and operating profit rose 1.5% to 41.6 billion yen, both new record highs. Ordinary profit increased 8.7% to 42.7 billion yen, and profit attributable to owners of parent increased 11.4% to 27.8 billion yen, also new record highs. In the operating profit analysis, a 5.9 billion yen contribution from sales volume was partly offset by net pricing (0.4), exchange (0.6), and fixed costs, etc. (4.2). In the Semiconductor Materials segment, fixed costs increased due to up-front investments.

Item (¥ billion)	FY2024	FY2025	Change	Change (%)
Net sales	407.1	416.5	9.4	2.3
Operating profit	41.0	41.6	0.6	1.5
Ordinary profit	39.3	42.7	3.4	8.7
Profit attributable to owners of parent	25.0	27.8	2.8	11.4
Net profit per share (yen/share)	¥245.6	¥278.0	¥32.4	–

Segment Results

By segment, Life Science was the main driver: net sales rose 11.8% to 111.7 billion yen and operating profit rose 26.4% to 9.8 billion yen, supported by strong agrochemical sales — herbicides and insecticides for paddy rice in Japan, where soaring rice prices led to an increase in rice acreage, as well as strong sales in Europe and insecticides for fruit trees and nuts in North America. In FY2025, five companies were newly consolidated in this segment. Within Chemicals, Semiconductor Materials sales grew 5.8% to 36.0 billion yen on strong advanced photoresist demand, but operating profit fell 17.7% to 7.4 billion yen as fixed costs increased due to up-front investments. Polymer Additives sales fell 6.7% to 98.4 billion yen on sluggish market conditions in home appliances and EVs, while Environmental Materials operating profit rose 14.8% to 9.2 billion yen on strong lubricant additives for engine oil and special epoxy resins.

Segment (¥ billion)	Net Sales FY2024	Net Sales FY2025	Operating Profit FY2024	Operating Profit FY2025
Chemicals	218.4	214.8	28.0	26.3
— Polymer Additives	105.4	98.4	10.8	9.6
— Semiconductor Materials	34.0	36.0	9.0	7.4
— Environmental Materials	78.9	80.3	8.0	9.2
Food Products	82.5	83.0	4.3	4.3
Life Science	99.9	111.7	7.7	9.8
Others	6.2	6.9	0.8	1.0
Total	407.1	416.5	41.0	41.6

FY2026 Forecast

For FY2026, ADEKA forecasts net sales of 453.0 billion yen (up 8.7%), operating profit of 46.8 billion yen (up 12.5%), ordinary profit of 46.6 billion yen (up 8.9%), and profit attributable to owners of parent of 28.8 billion yen (up 3.4%), targeting record highs for the third consecutive fiscal year with profit projected to increase in all segments. The company notes that the effects of the Middle East situation — supply chain risks and a risk of declining demand due to rising fuel and raw material prices — have not been factored into the FY2026 forecasts; it will closely monitor market trends and provide updated information as necessary. Exchange rate assumptions for the first half of FY2026 are ¥153.0/$ and ¥178.0/€, with naphtha assumed at ¥63,000/KL.

Item (¥ billion)	FY2026 Forecast	FY2025 Result	Change	Change (%)
Net sales	453.0	416.5	36.4	8.7
Operating profit	46.8	41.6	5.1	12.5
Ordinary profit	46.6	42.7	3.8	8.9
Profit attributable to owners of parent	28.8	27.8	0.9	3.4
Net profit per share (yen/share)	¥294.3	¥278.0	¥16.4	–

Shareholder Returns

For FY2025, the annual dividend will be 112 yen per share (dividend payout ratio of 40.3%), with the year-end dividend raised by 8 yen year on year to 60 yen per share. For FY2026, annual dividends are forecast to be 120 yen per share, a payout ratio of 40.8%; the company’s dividend policy under the medium-term plan is a payout ratio of 40% or more. ADEKA has increased its dividend for 4 consecutive terms and has not reduced it for 18 consecutive terms. The company’s plan to acquire a maximum of 10 million shares or 18 billion yen of treasury stock (share acquisition period: August 12, 2025 to May 31, 2026) will be completed at the end of May 2026 as planned; from August 2025 through April 2026, it had acquired 4.42 million shares for a total of 16.3 billion yen (91% progress by value), with cancellation scheduled for around early June 2026.

Item	FY2024	FY2025	FY2026 (Forecast)
Annual dividend (yen/share)	100	112	120
Dividend payout ratio (%)	40.7	40.3	40.8

Medium-Term Plan: Progress of ADX 2026

The medium-term management plan “ADX 2026” is positioned as the second stage toward the attainment of ADEKA VISION 2030 — a three-year period for increasing earnings strength with a focus on profit and efficiency. Against the FY2026 targets of operating profit of ¥53.0 billion on net sales of ¥500.0 billion, ROE of 11.0%, and ROIC of 10.5%, FY2025 results were operating profit of ¥41.6 billion on net sales of ¥416.5 billion, ROE of 9.1%, and ROIC of 9.1%. Net sales of eco-friendly products reached ¥92.4 billion in FY2025 (in line with plan) against a final-year target of ¥115 billion, and GHG emissions were 206 thousand t-CO2e (current estimate) against a FY2026 plan of 199 thousand t-CO2e. Net sales of strategic products (25 product lines) were ¥161.1 billion in FY2025 against a final-year plan of ¥212.5 billion, while sales of new products were ¥33.6 billion against a final-year plan of ¥59.0 billion. Capital investment was ¥21.6 billion in FY2025 (FY2026 forecast: ¥24.0 billion) under a three-year plan totaling ¥75.0 billion, including ¥15.8 billion of plant investment in Semiconductor Materials; a new research building was completed at the Kuki R&D Center.

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.