Dai Nippon Printing (7912): FY2025 Results Summary — Operating Profit Beats Revised Forecast, New FY2026-2028 Medium-Term Plan Unveiled

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

Dai Nippon Printing (DNP) reported FY2025 consolidated sales of ¥1,512.5 bn (+3.8% YoY) and operating profit of ¥101.0 bn (+7.9% YoY), both exceeding the revised forecast announced in February 2026. Net profit attributable to parent company shareholders declined 6.1% YoY to ¥103.9 bn, reflecting a decrease in gains on sales of fixed assets and investment securities, though it still outperformed the revised forecast, as did ROE at 8.9%. Alongside the results, DNP announced its new FY2026-2028 Medium-Term Management Plan.

Consolidated Results (FY2025 Full-Year Actual)

Sales increased year on year, driven by the creation of new value mainly in focus business areas. Operating profit rose year on year, driven largely by improved profitability resulting from business structure reforms. Net profit declined year on year due to a decrease in gains on sales of fixed assets and investment securities, but both net profit and ROE outperformed the upwardly revised forecast announced in February 2026.

Item	FY2024 Result	FY2025 Forecast (Revised)	FY2025 Result	YoY Change
Sales (¥bn)	1,457.6	1,515.0	1,512.5	+3.8%
Operating Profit (¥bn)	93.6	103.0	101.0	+7.9%
OP Margin	6.4%	6.8%	6.7%	+0.3pt
Ordinary Profit (¥bn)	115.9	116.0	119.2	+2.9%
Net Profit Attributable to Parent Company Shareholders (¥bn)	110.6	100.0	103.9	(6.1%)
ROE	9.6%	8.7%	8.9%	(0.7pt)
Capital Expenditures (¥bn)	76.6	85.0	87.7	+14.5%
R&D Expenditures (¥bn)	37.5	41.0	42.2	+12.6%
Depreciation (¥bn)	53.7	50.0	52.8	(1.7%)

Segment Results

By segment, Smart Communication and Life and Healthcare both grew sales and operating profit, while Electronics posted lower operating profit as Digital Interface-related businesses were affected by a semiconductor memory shortage in Q4. In Smart Communication, Imaging Communications benefited from strong demand for new printers and photo printing materials, and Information Security was supported by large-scale BPO projects despite a decline in dual-interface smart cards. In Life and Healthcare, operating profit rose sharply on higher sales of lithium-ion battery pouches for IT applications and encapsulant materials for the photovoltaic business, together with improved profitability in Packaging. In Electronics, growth from large-size metal masks for Gen-8 glass substrates and solid conditions in Semiconductor were offset by the Q4 impact of the semiconductor memory shortage on Digital Interface.

Segment	Metric	FY2024 (¥bn)	FY2025 (¥bn)	YoY Change (%)	YoY Change (¥bn)
Smart Communication	Sales	715.5	750.3	+4.9%	+34.8
Smart Communication	OP	34.6	40.0	+15.4%	+5.4
Life and Healthcare	Sales	496.0	512.3	+3.3%	+16.3
Life and Healthcare	OP	23.7	37.2	+56.6%	+13.5
Electronics	Sales	247.7	251.8	+1.6%	+4.1
Electronics	OP	57.3	50.7	(11.6%)	(6.6)
Adjustment	Sales	(1.7)	(1.9)	–	(0.2)
Adjustment	OP	(22.2)	(26.9)	–	(4.7)
Total	Sales	1,457.6	1,512.5	+3.8%	+54.9
Total	OP	93.6	101.0	+7.9%	+7.4

FY2026 Forecast

For FY2026, DNP forecasts consolidated sales of ¥1,530.0 bn (+1.2% YoY) and operating profit of ¥108.0 bn (+6.9% YoY), while net profit attributable to parent company shareholders is forecast to decline 8.6% YoY to ¥95.0 bn and ROE to fall to 8.0%. The Company states that its FY2026 outlook has been prepared based on information currently available, but that uncertainties remain regarding geopolitical risks — including developments in the Middle East — as well as fluctuations in raw material prices. As of May 13, 2026, increases in raw material and energy prices and indirect impacts through the supply chain had begun to emerge, and DNP is working to mitigate these through measures such as adopting alternative materials, diversifying and developing new sourcing channels, and passing on cost increases to customers where appropriate. Should future changes in the Middle East situation have a material impact on performance, the Company will promptly disclose such impacts.

Item	FY2025 Result	FY2026 Forecast	YoY Change
Sales (¥bn)	1,512.5	1,530.0	+1.2%
Operating Profit (¥bn)	101.0	108.0	+6.9%
OP Margin	6.7%	7.1%	+0.4pt
Ordinary Profit (¥bn)	119.2	124.0	+4.0%
Net Profit Attributable to Parent Company Shareholders (¥bn)	103.9	95.0	(8.6%)
ROE	8.9%	8.0%	(0.9pt)
Capital Expenditures (¥bn)	87.7	77.0	(12.2%)
R&D Expenditures (¥bn)	42.2	43.0	+1.7%
Depreciation (¥bn)	52.8	57.0	+7.9%

Segment	Metric	FY2025 Result (¥bn)	FY2026 Forecast (¥bn)	YoY Change (¥bn)
Smart Communication	Sales	750.3	742.0	(8.3)
Smart Communication	OP	40.0	43.0	+3.0
Life and Healthcare	Sales	512.3	516.0	+3.7
Life and Healthcare	OP	37.2	39.0	+1.8
Electronics	Sales	251.8	274.0	+22.2
Electronics	OP	50.7	54.0	+3.3
Adjustment	Sales	(1.9)	(2.0)	(0.1)
Adjustment	OP	(26.9)	(28.0)	(1.1)
Total	Sales	1,512.5	1,530.0	+17.5
Total	OP	101.0	108.0	+7.0

Shareholder Returns

DNP plans to increase dividends for a third consecutive year: the FY2026 annual dividend is planned at ¥41 per share (+¥1 YoY), comprising an interim dividend of ¥19 and a year-end dividend of ¥22. The FY2025 dividend per share was ¥40 (planned, +¥2), comprising an interim dividend of ¥18 and a year-end dividend of ¥22 (planned). Under the FY2026-2028 Medium-Term Management Plan, DNP intends to enhance dividend levels through progressive dividends aligned with profit growth and a higher dividend payout ratio (calculated on profit excluding special gains and losses), with a minimum dividend per share of ¥40. For share buybacks, DNP plans to execute ¥50 bn in FY2026 and at least ¥30 bn in FY2027, for a minimum of ¥80 bn over the two-year period from FY2026 to FY2027, carried out flexibly taking into account the balance with growth investments, share price levels, and capital efficiency.

Medium-Term Plan / Topics

DNP announced its new FY2026-2028 Medium-Term Management Plan, targeting an operating profit CAGR of 9% over the plan period. Planned capital expenditure for FY2026-2028 totals around JPY 300 billion, centered on focus businesses (Information Security, Photo Imaging, Industrial High-Performance Materials, Mobility, Digital Interface, and Semiconductor) — of which around ¥200 bn is for investment in focus and growth-potential businesses and around ¥100 bn for business infrastructure investments including equipment replacement. Under the cash allocation plan, DNP targets operating cash flow of at least ¥510.0 bn (before deduction of R&D and human capital investment), growth investment of at least ¥300.0 bn (CapEx approx. ¥300 bn, R&D investment approx. ¥120 bn, human capital investment approx. ¥35 bn), a target equity ratio of 55%, and a reduction of policy shareholdings to below 10% of consolidated net assets. Structural reforms are expected to contribute a cumulative operating profit impact of over ¥26.5 bn versus FY2022 from FY2026 onward, following measures such as reorganization of the Publishing Printing and Marketing businesses and fixed asset rationalization in Packaging and Living Space businesses.

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.