Sekisui Chemical (4204): FY2025 Results Summary — Record Sales and a Sixteenth Consecutive Dividend Increase

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

SEKISUI CHEMICAL CO., LTD. (4204) announced its results for FY2025 (the fiscal year ended March 31, 2026) on April 28, 2026. Net sales rose ¥11.5 billion year on year to a record ¥1,309.3 billion, a fourth consecutive fiscal year of record-high sales, while operating profit declined ¥1.5 billion to ¥106.5 billion. Ordinary profit reached a record ¥117.2 billion, largely on the back of an increase in foreign exchange gains, and profit attributable to owners of parent came to ¥75.2 billion. The annual dividend was set at ¥80 per share, up ¥1 year on year for a sixteenth consecutive fiscal year of dividend growth, and the FY2026 plan calls for record-high net sales and operating profit.

Consolidated Results (Full-Year Actual)

Net sales and operating profit fell below the January 2026 forecasts owing to the continued slump in domestic and overseas market conditions. Ordinary profit exceeded forecasts, largely on the back of the increase in foreign exchange gains. Despite incurring an impairment loss in the third quarter, the company posted a gain on sale of cross-shareholdings, and the bottom line came in above forecasts. ROE for the year was 9.1%.

Item (JPY billion)	FY2024	FY2025	YoY Change	FY2025 Forecast (Jan.)	vs. Forecast
Net sales	1,297.8	1,309.3	+11.5	1,327.9	-18.6
Operating profit	108.0	106.5	-1.5	110.0	-3.5
Ordinary profit	111.0	117.2	+6.3	112.0	+5.2
Profit attributable to owners of parent	81.9	75.2	-6.8	72.0	+3.2
Dividend per share (JPY)	79	80	+1	80	0

Segment Results

The Housing Company recorded an increase in net sales and a substantial increase in operating profit, with higher unit prices resulting from improvements in the product mix and growth in the Renovation Business offsetting a decrease in the number of houses sold. The High Performance Plastics (HPP) Company posted record-high net sales on steady growth in high-performance interlayer films in the Mobility field, but operating profit declined owing to the impact of one-off expenses. The Urban Infrastructure & Environmental Products (UIEP) Company secured a fourth consecutive fiscal year of record-high operating profit by maintaining margins despite a prolonged slump in market conditions. The Medical Business saw both net sales and operating profit decrease owing to the downturn in demand for priority infectious disease testing kits in the U.S. and weak market conditions in China.

Segment (JPY billion)	FY2025 Net Sales	YoY Change	FY2025 Operating Profit	YoY Change
HPP	456.6	+9.2	59.3	-1.9
Housing	536.2	+12.2	37.2	+5.7
UIEP	240.4	-0.1	23.2	+0.3
Medical	93.7	-5.5	11.1	-1.7
Other	7.8	+0.2	-12.7	-1.1
Eliminations or corporate expenses	-25.4	-4.6	-11.7	-2.7
Total	1,309.3	+11.5	106.5	-1.5

FY2026 Plan

For FY2026, the company plans record-high net sales of ¥1,408.4 billion and record-high operating profit of ¥115.0 billion, with increases in both net sales and operating profit in each of the four segments and record-high operating profit planned for the HPP and UIEP companies as well as on a Group-wide total basis. Significantly impacted by the absence of the foreign exchange gains recorded in the previous year, ordinary profit is forecast to decline, while an increase in the bottom line is planned. ROE is projected to come in at 9.0%. The deterioration in conditions across the Middle East is not factored into the FY2026 Management Plan; the company estimates an upswing in raw material prices of around -¥14 billion in the first half of FY2026 based on information from suppliers and intends, in principle, to offset this by passing it through to selling prices.

Item (JPY billion)	FY2025 (Actual)	FY2026 Plan	Change
Net sales	1,309.3	1,408.4	+99.1
Operating profit	106.5	115.0	+8.5
Ordinary profit	117.2	114.0	-3.2
Profit attributable to owners of parent	75.2	76.0	+0.8
Dividend per share (JPY)	80	81	+1

Shareholder Returns

For FY2025, the company set the period-end dividend at ¥40 per share for an annual dividend of ¥80 per share, up ¥1 per share year on year, marking a sixteenth consecutive fiscal year of dividend growth in line with the January 2026 forecasts. It also undertook the repurchase and cancellation of 14 million treasury shares (repurchase amount of ¥36.4 billion), and the total return ratio came in at 92.1%. For FY2026, the company plans to pay an annual dividend of ¥81 per share, up ¥1 per share, working toward a seventeenth consecutive fiscal year of dividend growth, and has established a limit for the acquisition of treasury shares (maximum: 4 million shares / ¥12 billion) with a plan to cancel 25 million treasury shares. Under the Medium-term Management Plan (2023-2025) return policy, the company targets a dividend payout ratio of 40% or higher, DOE of 3% or higher, and a total return ratio of 50% or higher if the D/E ratio is less than 0.5.

Item	FY2024	FY2025	FY2026 Plan
Cash dividend per share (JPY)	79	80	81
Payout ratio (%)	40.4	43.6	42.7
Acquisition of treasury shares (JPY billion)	8.9	36.4	12.0
Total return ratio (%)	51.2	92.1	58.5
DOE (%)	4.1	4.0	3.7
Cancellation of treasury shares (thousands of shares)	4,000	14,000	25,000

Topics: Launch of the Film-Type Perovskite Solar Cell Business

The company established production technology for 1-meter-wide panels using existing production equipment while completing preparation for installation specifications targeting metal roofs, and made the decision to launch a film-type perovskite solar cell business. In FY2026 it will proceed with the provision of as many products as possible with limited production volume using existing equipment, and it will prioritize efforts aimed at expanding supply by establishing a 100MW production line in FY2027, with an investment amount of ¥90 billion. Products are being supplied to municipalities and businesses selected for Japan’s Ministry of the Environment’s FY2025 public offering project “Support Project for the Introduction of Perovskite Solar Cell Social Implementation Models” and to the Tokyo Metropolitan Government’s “Air Solar Pre-Introduction Project for Tokyo Metropolitan Facilities.”

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.