Tokuyama (4043): FY2025 Results Summary — Operating Profit Up 24% on Semiconductor-Related Strength

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

Tokuyama Corporation (4043) presented its results for fiscal 2025 (April 1, 2025 to March 31, 2026) at an IR meeting on April 28, 2026. Net sales rose to 349.4 billion yen, up 6.4 billion yen (+2%) year on year, reflecting the inclusion of the Tokuyama Life Science (TLS) Group in the scope of consolidation and growth in semiconductor-related product sales. Operating profit increased 24% to 37.0 billion yen, helped by firm sales of semiconductor-related products and progress in manufacturing cost improvements. Performance and dividend forecasts for FY2026 are yet to be determined owing to factors including the impact of conditions in the Middle East.

Consolidated Results (Full-Year Actual)

Ordinary profit rose 29% to 38.2 billion yen, supported by the increase in operating profit and an improvement in non-operating income and expenses. Profit attributable to owners of parent declined 5% to 22.2 billion yen, reflecting a deterioration in extraordinary income and expenses. Basic earnings per share were 308.64 yen, versus 325.08 yen in FY2024. The average exchange rate was 151 yen per U.S. dollar (FY2024: 153 yen), and the domestic naphtha price was 65,300 yen per kiloliter (FY2024: 76,500 yen).

Item (Billions of yen)	FY2024	FY2025	Change	Change (%)
Net sales	343.0	349.4	+6.4	+2
Operating profit	29.9	37.0	+7.0	+24
Ordinary profit	29.5	38.2	+8.6	+29
Profit attributable to owners of parent	23.3	22.2	(1.1)	(5)
Basic earnings per share (yen)	325.08	308.64	–	–

On the balance sheet, total assets stood at 557.4 billion yen as of March 31, 2026, up 81.2 billion yen from a year earlier, mainly due to the inclusion of the TLS Group in the scope of consolidation. Shareholders’ equity increased 21.5 billion yen to 283.0 billion yen, while the shareholders’ equity ratio declined 4.1 percentage points to 50.8%. Interest-bearing debt increased 51.3 billion yen to 162.0 billion yen on higher commercial paper and long-term borrowings, and the D/E ratio rose from 0.42 to 0.57.

Segment Results

By segment, Electronic & Advanced Materials led profit growth, with net sales of 91.6 billion yen (+5%) and operating profit of 15.6 billion yen (+64%). Life Science net sales rose 18% to 49.3 billion yen on the addition of the TLS Group, with operating profit flat at 7.8 billion yen. Cement operating profit increased 28% to 9.5 billion yen. Chemicals saw net sales decline 8% to 106.2 billion yen and operating profit fall 10% to 9.7 billion yen. Segment figures include inter-segment transactions.

Segment (Billions of yen)	FY2024 Net sales	FY2025 Net sales	FY2024 Operating profit	FY2025 Operating profit
Chemicals	115.0	106.2	10.8	9.7
Cement	64.7	66.8	7.4	9.5
Electronic & Advanced Materials	87.0	91.6	9.5	15.6
Life Science	41.9	49.3	7.8	7.8
Eco Business	5.2	6.1	0.0	0.6
Others	40.7	41.7	2.1	2.0
Inter-segment eliminations and corporate-wide expenses	(11.6)	(12.5)	(7.9)	(8.4)
Consolidated Results	343.0	349.4	29.9	37.0

FY2026 Forecast

Performance and dividend forecasts for FY2026 are yet to be determined. The company states that making a reasonable estimate at this time is difficult, due to increasing uncertainty surrounding the procurement of raw materials and fuel, as well as rising costs, against the backdrop of heightened tensions in the Middle East. Tokuyama will promptly disclose forecasts going forward when a reasonable estimate can be made. While the impact of the Middle East situation is unavoidable, the company says it is securing earnings mainly in the Life Science and Electronic & Advanced Materials segments.

Shareholder Returns

For fiscal 2025, the company expects to pay a year-end dividend of 60 yen per share as planned, following an interim dividend of 60 yen. The dividend payout ratio for fiscal 2025 was 38.9% and DOE (dividend on equity, figure at fiscal year-end) was 3.3%. The company’s policy targets a DOE of 3% and a dividend payout ratio of over 30% from the fiscal year ending March 31, 2025. For fiscal 2026, although details are still undecided, the company states it will make every effort to maintain this policy.

Fiscal Year	2021	2022	2023	2024	2025
Interim dividend (yen)	35	35	35	50	60
Year-end dividend (yen)	35	35	45	50	60
Payout ratio (%)	18.0	53.8	32.4	30.8	38.9
DOE (%)	2.4	2.3	2.5	2.9	3.3

Capital Efficiency and Medium-Term Plan

Group ROIC for fiscal 2025 was 6.8%, exceeding WACC (6.5%) for the first time in four fiscal years. During fiscal 2025 the company implemented measures to transform its business portfolio: the acquisition of the TLS Group, a growth business; withdrawal from unprofitable businesses overseas; and a resolution to transfer the domestic sales business for cement and solidification agents. On cross-shareholdings, of a total of 11 issues, the company sold 2 entire issues and disposed of a portion of 1 issue, and will continue this initiative in FY2026. A new medium-term management plan is scheduled to be announced on May 29, 2026.

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.