AGC (5201): FY2025 Results Summary — Profit Rebounds on Automotive Strength as ROE Improves to 4.7%

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

AGC Inc. (5201) reported roughly flat net sales and a slight increase in operating profit for FY2025 (fiscal year ended December 31, 2025), with improvement in the Automotive segment contributing the operating profit increase. Profit for the period attributable to owners of the parent improved significantly, and ROE improved to 4.7%. For FY2026, AGC expects operating profit to increase further, driven by a recovery in Life Science, with ROE expected to improve to 5.2%.

Consolidated Results (Full-Year Actual)

Net sales for FY2025 were 20,588 (100 million JPY), down 88 from FY2024’s 20,676. Net sales increase factors included product mix improvement and pricing policies in Automotive, pricing policies and higher shipments in Performance Chemicals, and pricing policies in Architectural Glass in Europe & Americas, while decrease factors included lower PVC sales prices, decreased shipments of EUV mask blanks in Electronic Materials, and lower Architectural Glass sales prices in Asia. FOREX impact on net sales was +154 and change in the scope of consolidation was -51. Operating profit rose 16 to 1,275, as the realization of earnings improvement measures in Display and other factors more than offset higher raw materials and fuel prices and manufacturing cost deterioration. Profit before tax improved sharply to 1,248 from -501, and profit for the period attributable to owners of the parent improved to 692 from -940, aided by the disappearance of losses on the sale of shares of subsidiaries and associates related to the transfer of the Russian business and impairment losses related to Biopharmaceuticals CDMO booked in the previous year, partly offset by a decrease in recognition of foreign exchange profits.

Item	FY2025	FY2024	Change
Net sales (100 million JPY)	20,588	20,676	-88
Operating profit (100 million JPY)	1,275	1,258	+16
Profit before tax (100 million JPY)	1,248	-501	+1,748
Profit for the period attributable to owners of the parent (100 million JPY)	692	-940	+1,632

Segment Results

By segment, Automotive operating profit rose 153 to 293 on product mix improvement, pricing policies effects, and the positive impact of yen depreciation, with shipments increasing in Japan while decreasing in Europe, despite higher raw materials, fuel and labor costs. Architectural Glass net sales and operating profit both increased slightly, supported by pricing policies and yen depreciation in Europe & Americas, despite lower shipments in Europe and the negative impact from the prior-year transfer of the Russian business. Electronics operating profit declined 69 to 475, as decreased shipments of EUV mask blanks in Electronic Materials and expenses related to the decision to exit the Specialty Glass for Chemical Strengthening business weighed on results. Chemicals operating profit declined 37 to 530 on lower PVC sales prices in Essential Chemicals and deteriorations in manufacturing costs due to facility repairs, partly offset by pricing policies effects and higher shipments of fluorine-related products in Performance Chemicals. Life Science’s operating loss widened slightly to -223 from -212, as fixed cost reduction measures at the Biopharmaceuticals CDMO in the United States were offset by increased fixed costs from the European facility expansion and lower net sales following the disappearance of one-off revenues from contracted-project settlements and the closure of US Colorado sites.

Segment	Metric	FY2025	FY2024
Architectural Glass	Net sales (100 million JPY)	4,411	4,380
Architectural Glass	Operating profit (100 million JPY)	173	164
Automotive	Net sales (100 million JPY)	5,206	4,988
Automotive	Operating profit (100 million JPY)	293	139
Electronics	Net sales (100 million JPY)	3,551	3,645
Electronics	Operating profit (100 million JPY)	475	545
Chemicals	Net sales (100 million JPY)	5,842	5,936
Chemicals	Operating profit (100 million JPY)	530	568
Life Science	Net sales (100 million JPY)	1,331	1,412
Life Science	Operating profit (100 million JPY)	-223	-212
Ceramics/Other	Net sales (100 million JPY)	599	791
Ceramics/Other	Operating profit (100 million JPY)	26	51
Total	Net sales (100 million JPY)	20,588	20,676
Total	Operating profit (100 million JPY)	1,275	1,258

FY2026 Forecast

For FY2026, AGC forecasts net sales of 22,000 (100 million JPY), up from 20,588 in FY2025, and operating profit of 1,500, up from 1,275, with the operating profit margin expected to rise to 6.8% from 6.2%. Profit before tax is forecast at 1,240, and profit for the year attributable to owners of the parent is forecast at 770, up from 692 in FY2025. ROE is expected to improve to 5.2% from 4.7%. FOREX assumptions for FY2026 are JPY 155.0/USD and JPY 180.0/EUR, versus JPY 149.7/USD and JPY 169.0/EUR in FY2025, and the Dubai crude oil assumption is USD/BBL 70.0 versus 69.4. By segment, improvements in Life Science are expected to be the key driver of overall net sales and operating profit growth, with Chemicals also seeing a large net sales increase as full-scale production begins at an expanded facility in Thailand (Essential Chemicals – SEA).

Item	Forecast (FY2026e)	FY2025 (Actual)
Net sales (100 million JPY)	22,000	20,588
Operating profit (100 million JPY)	1,500	1,275
Profit before tax (100 million JPY)	1,240	1,248
Profit for the year attributable to owners of the parent (100 million JPY)	770	692
Operating profit margin	6.8%	6.2%
ROE	5.2%	4.7%
Dividend (JPY/share)	210	210
FOREX (Average) 1 USD	JPY 155.0	JPY 149.7
FOREX (Average) 1 EUR	JPY 180.0	JPY 169.0
Crude oil (Dubai, Average) USD/BBL	70.0	69.4

Segment	Metric	FY2025 (a)	FY2026e (b)	Change (b)-(a)
Architectural Glass	Net sales (100 million JPY)	4,411	4,800	+389
Architectural Glass	Operating profit (100 million JPY)	173	200	+27
Automotive	Net sales (100 million JPY)	5,206	5,100	-106
Automotive	Operating profit (100 million JPY)	293	320	+27
Electronics	Net sales (100 million JPY)	3,551	3,600	+49
Electronics	Operating profit (100 million JPY)	475	450	-25
Chemicals	Net sales (100 million JPY)	5,842	6,800	+958
Chemicals	Operating profit (100 million JPY)	530	560	+30
Life Science	Net sales (100 million JPY)	1,331	1,600	+269
Life Science	Operating profit (100 million JPY)	-223	-50	+173
Ceramics/Other	Net sales (100 million JPY)	599	600	+1
Ceramics/Other	Operating profit (100 million JPY)	26	20	-6
Total	Net sales (100 million JPY)	20,588	22,000	+1,412
Total	Operating profit (100 million JPY)	1,275	1,500	+225

Shareholder Returns

The FY2025 dividend was JPY 210 per share, unchanged from FY2024, continuing a level maintained since at least FY2021 (21/12). The FY2026 dividend forecast is also JPY 210 per share.

Strategic Businesses and Structural Reforms

Among AGC’s strategic businesses, overall operating profit for Mobility, Electronics, Performance Chemicals and Life Science decreased YoY in FY2025 due to decreased shipments of Electronics and decreased net sales of Life Science, although net sales of Performance Chemicals and Mobility increased; shipments of high value-added products such as light control glass and low-emissivity glass increased in Mobility, while Electronics net sales decreased due to a temporary slowdown in shipments of semiconductor-related products. For FY2026, the company expects net sales and operating profit of the strategic businesses to improve overall, driven by increases across all strategic businesses, with the improvement in Life Science operating profit driven in part by increased Biopharmaceuticals CDMO contract projects and the start-up of an expanded Small Molecule Pharmaceuticals and Agrochemicals CDMO facility. On structural reforms, AGC has been reducing Architectural Glass and Automotive production capacity in Europe by around 30% from 2021 through consolidation of production sites and lines, including the shutdown of the Boussois (France) furnace, suspension of the Moustier (Belgium) furnace, closure of a Belgium plant and a Germany assembly site, and headcount reductions in Belgium, France and the Czech Republic, alongside the transfer of the Philippine and North American Architectural Glass businesses and the Russian Architectural Glass and Automotive businesses.

5-Year Financial Trend

AGC’s consolidated net sales were 2,058,832 million JPY in FY2025 (25/12), with operating profit of 127,465 million JPY and an OP margin of 6.2%. Profit for the year attributable to owners of the parent was 69,162 million JPY, EPS was JPY 326.20, ROE was 4.7%, ROA was 4.4%, the equity ratio was 50%, and the D/E ratio was 0.37 times.

Item	21/12	22/12	23/12	24/12	25/12
Net sales (Million JPY)	1,697,383	2,035,874	2,019,254	2,067,603	2,058,832
Operating profit (Million JPY)	206,168	183,942	128,779	125,835	127,465
OP margin	12.1%	9.0%	6.4%	6.1%	6.2%
Profit for the year attributable to owners of the parent (Million JPY)	123,840	▲3,152	65,798	▲94,042	69,162
ROE	10.2%	▲0.2%	4.6%	▲6.5%	4.7%
EPS (JPY)	559.11	▲14.22	304.73	▲443.71	326.20
Cash dividends per share (JPY/year)	210	210	210	210	210

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.