JX Advanced Metals (5016): FY2025 Results Summary — Operating Profit Up 56% on Focus Businesses and Higher Copper Prices

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

JX Advanced Metals Corporation released its FY2025 (fiscal year ending March 31, 2026) financial results presentation materials on May 11, 2026. Revenue rose 24% year on year to 884.6 bil. yen and operating profit rose 56% to 175.0 bil. yen, as sales of the main products of the Focus Businesses increased and higher copper prices contributed. Profit attributable to owners of parent increased 53% to 104.6 bil. yen, and the annual dividend was raised by 13 yen per share to 31 yen. For FY2026 (fiscal year ending March 31, 2027), the company forecasts revenue of 930.0 bil. yen and operating profit of 190.0 bil. yen.

Consolidated Results (Full-Year Actual)

Operating profit increased 62.5 bil. yen year on year. The company attributes the increase to increased sales of main products of the Focus Businesses and the contribution of higher copper prices. The average exchange rate was 151 JPY/USD against 153 JPY/USD in FY2024, and the average LME copper price was 491 cents/lb against 425 cents/lb. On the operating profit bridge from FY2024 to FY2025, the company shows one-off of -3.7, exchange rate and LME copper etc. of +53.0 (exchange rate -5.0, copper prices etc. +58.0), volume variance (Focus) of +19.3, volume variance (Base) of -5.0, and cost variance etc. of -1.1. The one-off item reflects the recognition of a provision for environmental measures relating to the expansion of the Oshidorizawa Impoundment Storage Capacity at JX Nippon Mining Ecomanagement’s Sapporo Office, released on May 11, 2026.

Item (bil. yen)	FY2025 Results	FY2024 Results	Change	Change (%)
Revenue	884.6	714.9	+169.7	+24%
(Focus Businesses)	495.9	413.1	+82.8	+20%
(Base Businesses)	407.9	306.5	+101.4	+33%
(Other)	-19.2	-4.7	-14.5	–
Operating profit	175.0	112.5	+62.5	+56%
(Focus Businesses)	71.0	51.8	+19.2	+37%
(Base Businesses)	139.5	74.5	+65.0	+87%
(Other)	-35.5	-13.8	-21.7	–
Profit before tax	169.1	107.5	+61.6	+57%
Net profit	128.7	81.4	+47.3	+58%
Profit attributable to owners of parent	104.6	68.3	+36.3	+53%
Exchange rate (JPY/USD)	151	153	-2	–
LME copper price (cents/lb, average)	491	425	+66	+16%

Segment Results

In the Semiconductor Materials segment, revenue increased 20% to 177.2 bil. yen and operating profit increased 48% to 39.5 bil. yen. Within the segment, thin film materials revenue was 147.0 bil. yen with operating profit of 40.9 bil. yen, and tantalum and niobium revenue was 45.8 bil. yen with operating profit of -0.7 bil. yen. The company states that operating profit increased despite yen appreciation due to growth in sales of main products driven by the expansion of AI data center related demand, and that tantalum and niobium benefited from the reversal of goodwill impairment and structural reform expenses as well as a significant rise in sales of tantalum powder for capacitors and improvements in selling prices.

In the ICT Materials segment, revenue increased 20% to 318.7 bil. yen and operating profit increased 25% to 31.5 bil. yen. Functional materials revenue was 160.2 bil. yen with operating profit of 21.1 bil. yen, while Toho Titanium, TATSUTA Electric Wire and Cable and others recorded revenue of 158.5 bil. yen and operating profit of 10.4 bil. yen. In the Metals & Recycling segment (Base Businesses), revenue increased 33% to 407.9 bil. yen and operating profit increased 87% to 139.5 bil. yen, with mineral resources operating profit of 100.9 bil. yen and Metals & Recycling operating profit of 37.6 bil. yen. The company cites higher copper prices, the transfer of interests in the Quechua copper project and a deferred tax asset impact at Caserones as the main drivers.

Segment	Metric (bil. yen)	FY2025 Results	FY2024 Results	Change
Semiconductor materials	Revenue	177.2	148.0	+29.2
Semiconductor materials	Operating profit	39.5	26.7	+12.8
ICT materials	Revenue	318.7	265.1	+53.6
ICT materials	Operating profit	31.5	25.1	+6.4
Metals & Recycling (Base Businesses)	Revenue	407.9	306.5	+101.4
Metals & Recycling (Base Businesses)	Operating profit	139.5	74.5	+65.0
Other (common expenses)	Revenue	-19.2	-4.7	-14.5
Other (common expenses)	Operating profit	-35.5	-13.8	-21.7
Total	Revenue	884.6	714.9	+169.7
Total	Operating profit	175.0	112.5	+62.5

Balance Sheet and Cash Flows

As of March 31, 2026, cash and deposits were 66.3 bil. yen, other assets were 1,439.0 bil. yen, interest bearing debt was 324.3 bil. yen, other liabilities were 342.7 bil. yen, total equity attributable to owners of the parent was 726.5 bil. yen and minority interest was 111.8 bil. yen. Net interest-bearing debt was 257.9 bil. yen, up from 242.9 bil. yen as of March 31, 2025; the company explains the increase as due to investments for future capacity expansion in Focus Businesses etc. Cash flows from operating activities were 107.5 bil. yen, cash flows from investing activities were -77.3 bil. yen and free cash flow was 30.3 bil. yen, while cash flows from financing activities were -24.9 bil. yen. CAPEX was 84.5 bil. yen, depreciation 44.7 bil. yen and R&D expenses 20.0 bil. yen.

FY2026 Forecasts (Fiscal Year Ending March 31, 2027)

For FY2026 the company forecasts revenue of 930.0 bil. yen and operating profit of 190.0 bil. yen, assuming an exchange rate of 150 JPY/USD and an LME copper price of 520 cents/lb. Operating profit of the Focus Businesses is forecast to rise 15% to 82.0 bil. yen on the continued growth driven by the expansion of AI data center related demand and improved selling prices, while the Base Businesses are forecast to decline 11% to 124.0 bil. yen. An impact from the Middle East situation of -7.0 bil. yen is incorporated. Operating profit sensitivity for FY2026 is shown as +9.0 bil. yen in total for a 5-yen weaker yen and +4.0 bil. yen in total for a +10 cents/lb move in the LME copper price. By segment, the company forecasts Semiconductor Materials revenue of 200.0 bil. yen and operating profit of 50.0 bil. yen, ICT Materials revenue of 330.0 bil. yen and operating profit of 32.0 bil. yen, and Metals & Recycling revenue of 420.0 bil. yen and operating profit of 124.0 bil. yen.

Item (bil. yen)	FY2026 Forecasts	FY2025 Results	Change	Change (%)
Revenue	930.0	884.6	+45.4	+5%
(Focus Businesses)	530.0	495.9	+34.1	+7%
(Base Businesses)	420.0	407.9	+12.1	+3%
(Other)	-20.0	-19.2	-0.8	–
Operating profit	190.0	175.0	+15.0	+9%
(Focus Businesses)	82.0	71.0	+11.0	+15%
(Base Businesses)	124.0	139.5	-15.5	-11%
(Other)	-16.0	-35.5	+19.5	–
Profit before tax	178.0	169.1	+8.9	+5%
Net profit	140.0	128.7	+11.3	+9%
Profit attributable to owners of parent	114.0	104.6	+9.4	+9%
Exchange rate (JPY/USD)	150	151	-1	–
LME copper price (cents/lb, average)	520	491	+29	+6%

Shareholder Returns

The FY2025 dividend per share was 31 yen (interim 6 yen, year-end 25 yen), against 27 yen assumed in the February plan and 18 yen for FY2024, which excludes the dividend paid in November 2024 (85 bil. yen). The FY2025 dividend payout ratio was 27%. The dividend policy applied to date was based on a consolidated payout ratio of approximately 20%, with a portion of excess profits from the Base Businesses returned when copper prices exceed the company’s assumptions. The company decided to revise the shareholder return policy in order to enhance predictability by making the policy clearer and more concise, and to eliminate linkage solely to copper prices in light of the planned conversion of Toho Titanium into a wholly owned subsidiary. Going forward the policy uses a consolidated payout ratio of approximately 25% as a benchmark and sets a minimum dividend per share of 20 yen. For FY2026 the dividend is expected to be set at the minimum level of 20 yen per share (interim 10 yen, year-end 10 yen, payout ratio 16%) because the company plans to conduct a substantial share repurchase, with a total payout ratio for FY2026 expected to be approximately 235% on an assumed share repurchase amount of 250 billion yen.

Item	FY2024 Results	FY2025 (in Feb.)	FY2025 Result
Dividend per share	18 yen (excludes the dividend paid in Nov. 2024)	27 yen	31 yen
Interim	–	6 yen	6 yen
Year-end	–	21 yen	25 yen
Dividend payout ratio	24%	27%	27%

Medium- to Long-Term Business Target and Topics

The company states that it is steadily progressing toward its goals. Consolidated operating profit moved from 86.2 bil. yen in FY2023 to 112.5 bil. yen in FY2024 and 175.0 bil. yen in FY2025, with 190.0 bil. yen forecast for FY2026, a CAGR of 30% for FY2023-FY2026 against a target CAGR of 10%-15% for FY2023-FY2027. Focus Businesses operating profit moved from 27.3 bil. yen to 51.8 bil. yen and 71.0 bil. yen, with 82.0 bil. yen forecast for FY2026, a CAGR of 44% against a target CAGR of 35%-40%. The consolidated operating profit margin was 19.8% in FY2025 against a reference FY2027 target of 12%-17%, ROE was 15.6% against a target of 10% or more, and the Net Debt/EBITDA ratio was 1.2x against a target of less than 1.5x.

On portfolio transformation, the company agreed to transfer a share of the Caserones Copper Mine (30% to 25%) and interests in the copper mine development project in the Frontera Area for approximately 34 billion yen, acquired a 5% equity stake in Fireweed Metals Corp. for approximately 5.4 bil. yen, and made growth investments of approximately 23 bil. yen including capital investment for expanding production of sputtering targets for semiconductors at the new Hitachinaka factory, where operations are planned to begin sequentially from the second half of FY2027 with capacity expected to increase to 1.6 times the FY2023 level. The company also agreed to convert Toho Titanium into a wholly-owned subsidiary through a share exchange with an allotment ratio of 1 to 0.70 and 24,728,687 JX Advanced Metals shares scheduled to be delivered, with a scheduled effective date of June 1, 2026; current ownership is 50.37%. In addition, the company announced a share repurchase and tender offer for its own shares and a proposed offering of convertible bonds with stock acquisition rights; for details of the offering the materials refer readers to the offering circular.

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.