Asahi Kasei (3407): FY2025 Results Summary — Record Operating Income Led by First Priority Businesses

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

Asahi Kasei Corporation reported consolidated net sales of ¥3,074.5 billion (+1.2% YoY) and operating income of ¥231.2 billion (+9.1% YoY) for fiscal 2025 (year ended March 31, 2026), a new record for the second consecutive year and exceeding the company’s previous forecast. Net income attributable to owners of the parent rose 17.6% YoY to ¥158.8 billion, also exceeding the previous forecast. Growth was driven by First Priority businesses centered on Pharmaceuticals and Electronics amid ongoing business portfolio transformation. For fiscal 2026, the company forecasts operating income of ¥248.0 billion (+7.3%), aiming for a record high for the third consecutive year, and net income of ¥160.0 billion (+0.8%).

Consolidated Results (Full-Year Actual)

Net sales increased ¥37.2 billion (+1.2%) to ¥3,074.5 billion, and operating income increased ¥19.3 billion (+9.1%) to ¥231.2 billion, both exceeding the February 2026 forecast. Excluding negative impact of foreign exchange, market prices, and one-time factors of -¥10.1 billion, the substantive increase in operating income was +¥29.4 billion, driven by increased sales and improved profitability centered on First Priority businesses, with a particularly significant income contribution from the October 2024 consolidation of Calliditas in Pharmaceuticals. EBITDA rose 7.4% to ¥427.5 billion, and EPS rose 19.4% to ¥116.97.

Item	FY2025	FY2024	Change
Net sales	¥3,074.5 billion	¥3,037.3 billion	+1.2% (+¥37.2 billion)
Operating income	¥231.2 billion	¥211.9 billion	+9.1% (+¥19.3 billion)
Operating margin	7.5%	7.0%	+0.5pt
Operating income before goodwill amortization	¥264.9 billion	¥244.5 billion	+8.3% (+¥20.4 billion)
EBITDA	¥427.5 billion	¥398.0 billion	+7.4% (+¥29.5 billion)
EBITDA margin	13.9%	13.1%	+0.8pt
Net income attributable to owners of the parent	¥158.8 billion	¥135.0 billion	+17.6% (+¥23.8 billion)
EPS	¥116.97	¥97.94	+19.4% (+¥19.03)
Dividends per share	¥42	¥38	+¥4

Segment Results

Healthcare operating income increased ¥19.4 billion (+30.3%) with growth of mainstay products in Pharmaceuticals & Life Science and the effect of the Calliditas consolidation. Homes operating income increased ¥3.9 billion (+4.0%) with higher average unit prices in order-built homes and firm performance in real estate development and rental/brokerage. Material operating income decreased ¥11.6 billion (-14.5%), as greater shipments of mainstay Electronics products were outweighed by the impact of inventory valuation and a maintenance turnaround in Essential Chemical, plus increased fixed costs.

Segment	Metric	FY2025	FY2024
Healthcare	Sales	¥664.1 billion	¥615.9 billion (+7.8%)
Healthcare	Operating income	¥83.5 billion	¥64.0 billion (+30.3%)
Homes	Sales	¥1,077.4 billion	¥1,035.9 billion (+4.0%)
Homes	Operating income	¥99.8 billion	¥95.9 billion (+4.0%)
Material	Sales	¥1,306.2 billion	¥1,368.8 billion (-4.6%)
Material	Operating income	¥68.3 billion	¥79.9 billion (-14.5%)

FY2026 Forecast

For fiscal 2026, net sales are expected to increase ¥179.5 billion (+5.8%) to ¥3,254.0 billion and operating income is expected to increase ¥16.8 billion (+7.3%) to ¥248.0 billion, with income growth forecast in all segments led by First Priority businesses centered on Critical Care and Electronics. Net income is expected to increase ¥1.2 billion (+0.8%) to ¥160.0 billion; income tax expenses were reduced in the previous year by a tax effect of structural transformation, but no particular variation in income tax expenses is incorporated in the current forecast. The company states that the impact of the Middle East situation is not reflected in the FY2026 forecast, though supply chain risks and reduced demand mainly in Material due to higher feedstock prices are presumed; the impact of U.S. tariff policy is currently expected to be immaterial.

Item	Forecast	FY2025 (Actual)
Net sales	¥3,254.0 billion	¥3,074.5 billion (+5.8%)
Operating income	¥248.0 billion	¥231.2 billion (+7.3%)
Operating margin	7.6%	7.5%
Net income attributable to owners of the parent	¥160.0 billion	¥158.8 billion (+0.8%)
EPS	¥119.65	¥116.97 (+2.3%)
Dividends per share	¥44	¥42

Shareholder Returns

The full-year dividend for fiscal 2025 was increased by ¥4 to ¥42 per share, and the fiscal 2026 dividend is forecast to increase by a further ¥2 to ¥44 per share, in line with the shareholder returns policy of aiming for medium- to long-term progressive dividends with an adjusted DOE (dividends on equity) of 3% as a benchmark. The dividend payout ratio was 35.9% in FY2025 and is forecast at 36.8% for FY2026. A share repurchase of up to ¥40.0 billion, decided on November 5, 2025 (repurchase period from November 6, 2025 to October 31, 2026), is currently in progress; the level of shareholder returns is determined based on the medium-term free cash flow outlook, and share repurchase decisions comprehensively consider optimal capital structure, investment projects, cash flow, and share price conditions.

Item	FY2025	FY2026 Forecast
Dividend per share	¥42	¥44
Dividend payout ratio	35.9%	36.8%
Share repurchase	Up to ¥40.0 billion decided Nov. 5, 2025 (in progress, Nov. 6, 2025 – Oct. 31, 2026)	—

Medium-Term Plan / Topics

Under the current medium-term plan “Trailblaze Together” (FY2025–27), Asahi Kasei is advancing business portfolio transformation through both growth investments and structural transformation, following cumulative M&A of approximately ¥1 trillion and growth-related capex of approximately ¥600 billion since FY2018. Growth investments decided in FY2025 include the acquisition of Bionova Scientific (biologics CDMO) and construction of a new Planova spinning plant in Life Science, and expansion of Pimel capacity in Electronics. Structural transformation actions include discontinuation of MMA, CHMA, PMMA resin, and SB latex businesses and reconfiguration of derivatives operations at the Mizushima Works, with the company targeting discontinuation of the AMEC ethylene production facility in Mizushima by fiscal 2030. In Healthcare, Asahi Kasei completed the acquisition of Aicuris Anti-infective Cures AG (Wuppertal, Germany), a biopharmaceutical company focused on severe infectious disease, for approximately ¥143.1 billion, with the deal closing on April 17, 2026 and consolidation from May 2026; operating income in Pharmaceuticals & Life Science is expected to decrease ¥2.9 billion in FY2026 due to the impact of the Aicuris acquisition and in-licensing expenses, despite growth of existing businesses contributing +¥15.1 billion.

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.