Tokyo Ohka Kogyo (4186): FY2025 Results Summary — Record Results for a Second Consecutive Year on Generative AI Demand

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TOKYO OHKA KOGYO CO., LTD. (TOK) announced its consolidated business results for the fiscal year ended December 31, 2025 (FY2025) on February 9, 2026. Net sales, operating income, ordinary income, and profit attributable to owners of parent all hit record highs for two consecutive years, as both net sales and operating income increased significantly by capitalizing on the expansion of the electronics market, including an increase in demand for generative AI-related products. The company had revised its full-year financial results forecast upward on January 30. For FY2026, TOK expects year-on-year growth in both net sales and operating income significantly exceeding FY2025, reaching record highs for three consecutive years.

Consolidated Results (Full-Year Actual)

Net sales rose 17.9% year on year to 237,029 million yen. Both electronic functional materials and high-purity chemicals achieved significant sales growth due to higher demand for generative AI-related products and steady growth for replacement of PCs. Operating income increased 43.2% year on year to 47,386 million yen, driven by higher sales of high value-added products, mainly advanced materials, and including a one-off profit recorded in connection with the recognition of inventories such as development-related materials in Q4. Profit attributable to owners of parent grew 47.0% to 33,345 million yen, including extraordinary income associated with the transfer of the Equipment Business in Q1. The average exchange rate was ¥148.6/$ in FY2025, versus ¥150.8/$ in FY2024.

Item (Millions of yen)	FY2024	FY2025	Change	%
Net sales	200,966	237,029	+36,062	+17.9
Electronic functional materials	107,515	124,700	+17,184	+16.0
High purity chemicals	91,476	109,400	+17,923	+19.6
Other	1,974	2,928	+954	+48.3
Operating income	33,090	47,386	+14,295	+43.2
Ordinary income	34,554	49,274	+14,720	+42.6
Profit attributable to owners of parent	22,683	33,345	+10,661	+47.0
EBITDA	41,424	56,194	+14,769	+35.7
ROE (%)	11.8	15.6	+3.8	–

Results by Business

Sales of electronic functional materials increased 16.0% year on year to 124,700 million yen, and sales of high purity chemicals increased 19.6% to 109,400 million yen. In the breakdown of the change in operating income, the impact of sales increase and product mix contributed +¥19.3 billions and the one-off profit in connection with the recognition of inventories such as development-related materials contributed +¥2.0 billions, while expenses increased ¥5.5 billions and the impact of exchange rate changes and price adjustment was a negative ¥1.6 billions. Capital investments in FY2025 were 28,723 million yen (up 16.0% year on year), with some planned investments postponed to next year; R&D expenses were 15,673 million yen (up 8.0%).

FY2026 Forecast

For FY2026 (January–December 2026), TOK forecasts net sales to increase 10.1% year on year due to higher demand for advanced semiconductor materials and back-end process-related materials and steady growth of high-purity chemicals, driven by an increase in generative AI-related demand and the launch of operations of customers’ new plants. Operating income is forecast to increase 10.2% and profit attributable to owners of parent 5.0%. The assumed exchange rate is ¥150.0/$, versus the FY2025 actual of ¥148.6/$. Capital investments are planned at 35,800 million yen (up 24.6%) and R&D at 18,200 million yen (up 16.1%).

Item (Millions of yen)	FY2025	FY2026 Forecast	Change	%
Net sales	237,029	261,000	+23,970	+10.1
Electronic functional materials	124,700	140,000	+15,299	+12.3
High-purity chemicals	109,400	116,000	+6,599	+6.0
Others	2,928	5,000	+2,071	+70.7
Operating income	47,386	52,200	+4,813	+10.2
Ordinary income	49,274	53,800	+4,525	+9.2
Profit attributable to owners of parent	33,345	35,000	+1,654	+5.0
EBITDA	56,194	63,500	+7,305	+13.0
ROE (%)	15.6	14.5	(1.1)	–

Shareholder Returns

Under the dividend policy targeting 4.0% of a consolidated dividend on equity ratio (DOE), the year-end dividend for FY2025 is forecast at 37 yen, bringing the annual dividend to 72 yen — dividend growth for eight consecutive years. For FY2026, the annual dividend is forecast at 80 yen (interim 40 yen, year-end 40 yen), maintaining consecutive dividend growth under the dividend policy targeting 4.0% of DOE. Share buybacks are to be implemented flexibly.

Item	FY2024	FY2025	FY2026 Forecast
Annual dividend per share (yen)	63	72 (year-end 37 planned)	80

Revision of tok Medium-Term Plan 2027 Quantitative Objectives

TOK revised upward the quantitative objectives of its tok Medium-Term Plan 2027. The background is (1) changes in semiconductor market trends — demand for tok products is growing at a pace exceeding the initial forecast, driven by increasing demand for generative AI semiconductors — and (2) changes in the exchange rate, with the yen weaker than initially forecast (average exchange rate assumption for FY2025 to FY2027 revised from ¥135.0/$ to ¥150.0/$). Net sales, operating income, EBITDA, and ROE targets were revised upward; qualitative objectives and key strategies are not revised.

Item	FY2025 Results	FY2027 Initial Targets (announced Jan. 2025)	FY2027 Revised Targets (announced Feb. 2026)
Net sales (billion yen)	237.0	270.0	295.0
Operating income (billion yen)	47.3	48.0	60.0
EBITDA (billion yen)	56.1	58.0	72.0
ROE	15.6%	13.0%	14.0%

Under the tok Medium-Term Plan 2027 three-year cash flow plan, cumulative EBITDA of approximately ¥190 billion is to be allocated to capital investment of ¥76 billion, growth investment of approximately ¥20 billion or more, and shareholder returns of approximately ¥28 billion or more. The company is expanding manufacturing capital, including a new high-purity chemicals production plant at the Aso Plant in Kumamoto, Japan (investment of approx. ¥13.0 billions), construction underway on the world’s largest photoresist manufacturing building at the Koriyama Plant (over ¥20.0 billions), a high-purity chemical manufacturing building at TOKAM’s Pyeongtaek Plant in South Korea (approx. ¥12.0 billions), and a new inspection building at TOKAM’s Incheon Plant (approx. ¥7.0 billions).

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