Sumitomo Bakelite (4203): FY2025 Results Summary — Record Results on Semiconductor Materials Strength

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

Sumitomo Bakelite Co., Ltd. (4203) announced its FY2025 financial results on May 11, 2026. Revenue rose 5.0% year on year to 319.9 billion yen and business profit increased 11.8% to 34.5 billion yen, with the company noting that both revenue and business profit have grown steadily, achieving record high results. Operating profit climbed 43.1% to 35.5 billion yen and profit attributable to owners of parent rose 45.3% to 28.0 billion yen, lifting ROE from 6.5% to 8.8%. For FY2026, the company forecasts revenue of 337.0 billion yen and business profit of 38.0 billion yen, with an annual dividend forecast of 120.00 yen per share, up 10 yen from FY2025.

Consolidated Results (Full-Year Actual)

Revenue increased 15.1 billion yen year on year. By driver, sales volume contributed +9.6 billion yen, sales prices +3.2 billion yen, and foreign exchange +2.3 billion yen. Business profit rose 3.7 billion yen, with sales volume (+3.1 billion yen) and sales & cost (+3.5 billion yen) outweighing higher fixed costs (-3.1 billion yen); forex added +0.2 billion yen. The average exchange rate was 150.97 JPY/USD in FY2025 versus 152.48 in FY2024. Business profit is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

Item (Billion yen)	FY2024	FY2025	Change	Ratio
Revenue	304.8	319.9	15.1	5.0%
Business Profit	30.8	34.5	3.7	11.8%
Operating Profit	24.8	35.5	10.7	43.1%
Profit attributable to owners of parent	19.3	28.0	8.7	45.3%
ROE	6.5%	8.8%	–	–

Segment Results

Semiconductor Materials drove the year, with revenue rising from 91.3 billion yen to 106.4 billion yen and business profit from 18.0 billion yen to 20.7 billion yen, supported by strong performance in China and AI power applications, expanding demand for memory applications, and signs of recovery in automotive applications in Southeast Asia. High Performance Plastics saw recovery in demand for aircraft and solid semiconductor applications, with business profit improving from 5.3 billion yen to 6.2 billion yen. Quality of Life Products delivered stable performance centered on pharmaceutical packaging despite seasonal declines, with business profit rising from 11.8 billion yen to 12.9 billion yen.

Segment (Billion yen)	Metric	FY2024	FY2025
Semiconductor Materials	Revenue	91.3	106.4
High Performance Plastics	Revenue	105.5	105.5
Quality of Life Products	Revenue	107.2	107.2
Semiconductor Materials	Business Profit	18.0	20.7
High Performance Plastics	Business Profit	5.3	6.2
Quality of Life Products	Business Profit	11.8	12.9

FY2026 Forecast

For FY2026, the company forecasts revenue of 337.0 billion yen (up 5.4%), business profit of 38.0 billion yen (up 10.2%), operating profit of 37.5 billion yen (up 5.7%), and profit attributable to owners of the parent of 28.5 billion yen (up 1.7%), assuming an exchange rate of 155.00 JPY/USD. By segment, Semiconductor Materials is expected to lead with revenue of 117.5 billion yen and business profit of 23.5 billion yen (business profit margin of 20%), with growth driven primarily by increasing demand for AI servers in power and memory applications. High Performance Plastics forecasts revenue of 109.5 billion yen and business profit of 7.0 billion yen (margin 6.4%), and Quality of Life Products forecasts revenue of 109.0 billion yen and business profit of 13.0 billion yen (margin 11.9%).

Item (Billion yen)	FY2025 (Result)	FY2026 (Forecast)	Change	Ratio
Revenue	319.9	337.0	17.1	5.4%
Business Profit	34.5	38.0	3.5	10.2%
Operating Profit	35.5	37.5	2.0	5.7%
Profit attributable to owners of the parent	28.0	28.5	0.5	1.7%
Forex (JPY/USD)	150.97	155.00	–	–

Shareholder Returns

The dividend forecast for FY2026 is 120.00 yen per share (interim 60 yen, year-end 60 yen), an increase of 10 yen from FY2025. The FY2025 annual dividend was 110.0 yen per share (interim 50.00 yen, year-end 60.00 yen, of which 5.00 yen was a commemorative dividend for the 70th anniversary of founding on March 1, 2025). Dividend figures are calculated assuming the two-for-one common stock split issued on April 1, 2024 occurred at the beginning of FY2022. The company states its policy of stable and continuous distribution of profits to shareholders, and under its shareholder return policy for FY2024-26 it aims for a dividend payout ratio of approximately 40%.

Dividend per share (yen)	FY2022	FY2023	FY2024	FY2025	FY2026 (Forecast)
Interim	30.00	35.00	45.00	50.00	60.00
Year-end	35.00	40.00	50.00	60.00	60.00
Total	65.00	75.00	95.00	110.0	120.00

Medium-Term Plan / Topics

The company states that it is progressing as planned in the medium-term plan. Its Vision for 2030 targets business profit of JPY 55 billion, a business profit margin of 13%, and ROE of 10%. Cash allocation for FY2024-26 comprises capital investments of JPY 50 billion, growth investments of JPY 20 billion (promotion of DX and capability enhancement), strategic investments of JPY 50 billion (execution of M&A, including Kyocera and AGC), and shareholder returns of JPY 30 billion. In Semiconductor Materials, the company is creating synergies with the business acquired from Kyocera in AI and high thermal conductivity applications, certification of the new factory in China has been completed, and mass production of stator encapsulants for humanoid robots has begun. In High Performance Plastics, the sales ratio of focus areas reached 17% in FY2025, with a target of 20% for FY2026 under the mid-term plan. On sustainability, GHG emissions in FY2025 are estimated to be down 52% versus FY2021 against a 2030 reduction target of 48%, and the sales revenue ratio of SDG-contributing products is estimated at 68.7% versus a FY2030 target of 70%.

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.