Taiyo Holdings (4626): FY2025 Results Summary — Net Income Up 123% as Board Backs Planned KKR Tender Offer

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Note: Taiyo Holdings labels the fiscal year ended March 31, 2026 as “FY2026/3”; under this site’s convention the period is classified as FY2025, and the figures and labels in the body and tables below follow the company’s materials.

Taiyo Holdings Co., Ltd. (4626: Prime Market of Tokyo Stock Exchange) announced its consolidated results for FY2026/3 (fiscal year ended March 31, 2026) on April 30, 2026. Net sales rose 16% year on year to 137,851 million yen, operating income rose 47% to 32,529 million yen, and net income rose 123% to 24,011 million yen. In the Electronics segment, sales volume increased mainly for PKG and rigid products, supported by strong demand stemming from the growing use of AI. The company also announced that its Board of Directors resolved to express support for a planned tender offer for its shares by KJ005 Co., Ltd. (investment funds managed by KKR), and that no year-end dividend will be paid for the fiscal year.

Consolidated Results (Full-Year Actual)

All headline items exceeded the full-year forecast announced on February 4: progress was 104% for net sales (forecast: 133,000 million yen), 110% for operating income (29,600 million yen), 111% for ordinary income (29,100 million yen), and 119% for net income (20,100 million yen). EBITDA of 41,225 million yen came in at 108% of the 38,200 million yen forecast. The operating income margin improved from 19% to 24%, and the EBITDA margin from 27% to 30%. The average exchange rate was 150.9 JPY/USD, versus 152.5 JPY/USD in the previous year, with the appreciation of the yen having a negative impact on business results.

Item (JPY Million)	FY2026/3 Result	FY2025/3 Result	YoY	% of Changes
Net Sales	137,851	119,010	18,841	16%
Operating Income	32,529	22,067	10,462	47%
Ordinary Income	32,244	21,577	10,667	49%
Net Income	24,011	10,780	13,231	123%
EBITDA	41,225	31,709	9,515	30%
Exchange rate (JPY/USD)	150.9	152.5	(1.6)	–

Segment Results

Electronics net sales increased 17% year on year to 95,285 million yen, with operating income up 36% to 29,177 million yen and the operating income margin rising from 26% to 31%. For PKG products, supported by strong demand stemming from the growing use of AI, sales volume increased mainly for dry film products for memory applications. For rigid products, sales volume increased mainly for automotive and smartphone products, while sales volume of display (white dry film) products decreased as fluctuations in demand for certain end products led to lower demand.

Medical and Pharmaceuticals net sales increased 16% year on year to 36,490 million yen, and operating income rose 147% to 5,063 million yen. In the contract manufacturing business, the start of full-scale contract manufacturing for new customers and higher contract volume from existing customers increased contract volume. In the manufacturing and marketing business, sales volume increased due to higher demand in line with supply shortages of drugs with the same indications at other companies, and sales increased due to the upward revision of drug prices for certain products following the NHI drug price revision; sales volume decreased for items subject to the elective care scheme implemented from October 2024. ICT and Sustainability net sales rose 6% to 6,075 million yen with an operating loss of 95 million yen.

Segment	Metric (JPY Million)	FY2026/3	FY2025/3	YoY	% of Changes
Electronics	Net Sales	95,285	81,703	13,582	17%
Electronics	Operating Income	29,177	21,458	7,718	36%
Electronics	EBITDA	32,973	25,139	7,833	31%
Medical and Pharmaceuticals	Net Sales	36,490	31,558	4,932	16%
Medical and Pharmaceuticals	Operating Income	5,063	2,049	3,014	147%
Medical and Pharmaceuticals	EBITDA	8,943	7,061	1,881	27%
ICT and Sustainability	Net Sales	6,075	5,749	326	6%
ICT and Sustainability	Operating Income	(95)	262	(357)	(136%)
Company Expense	Operating Income / Loss	(1,616)	(1,703)	86	–

Full-Year Forecast (FY2027/3)

For FY2027/3, the company forecasts net sales of 146,300 million yen (up 6%), operating income of 34,300 million yen (up 5%), ordinary income of 33,400 million yen (up 4%), and net income of 24,100 million yen (0% change). The assumed average exchange rate is 150.0 JPY/USD, an appreciation of 0.9 yen versus the FY2026/3 actual of 150.9 JPY/USD, which will negatively impact earnings. In Electronics, sales volume of PKG products is expected to increase mainly for memory-related products on continued strong demand driven by the spread of AI, while a decrease in sales volume of rigid dry film products is expected due to an anticipated decline in demand for display-related products. In Medical and Pharmaceuticals, contract volume is expected to increase, but operating income is expected to decrease by 21% due to higher cost of sales and selling, general and administrative expenses. The company notes that factors such as escalating tensions in the Middle East and potential additional expenses related to the Tender Offer are not incorporated in the forecasts.

Item (JPY Million)	FY2027/3 Forecast	FY2026/3 Result	% of Changes
Net Sales	146,300	137,851	6%
Net Sales (Electronics)	102,200	95,285	7%
Net Sales (Medical and Pharmaceuticals)	37,500	36,490	3%
Operating Income	34,300	32,529	5%
Ordinary Income	33,400	32,244	4%
Net Income	24,100	24,011	0%
EBITDA	43,200	41,225	5%

Planned Tender Offer for Company Shares

At the Board of Directors meeting held on March 31, 2026, the company resolved to express its support for the tender offer for its shares by KJ005 Co., Ltd. (investment funds managed by KKR) and to leave the decision of whether to tender shares up to shareholders. The tender offer price is 4,750 yen per common share, with a minimum of 44,648,100 shares to be purchased (ownership ratio: 40.12%) and no maximum. The tender offer is planned to be commenced in early October 2026, with a tender offer period of 21 business days in principle. Following completion of the tender offer, an extraordinary general shareholders’ meeting related to the squeeze-out is planned.

Shareholder Returns

In light of the planned commencement of the tender offer, the Board of Directors resolved on March 31, 2026 to revise the dividend forecast for the fiscal year ended March 2026 and not to pay a year-end dividend for that fiscal year. Annual dividends for FY2026/3 total 165.00 yen per share (interim only), with a consolidated payout ratio of 38.2%. The company also does not expect to declare interim and year-end dividends in the fiscal year ending March 31, 2027. Note that a stock split of 1:2 took effect on December 1, 2025; dividends per share for the fiscal year ended March 31, 2026 are presented without reflecting the effect of this stock split.

Fiscal Year	Second Quarter-End	Fiscal Year-End	Total	Dividend on Equity Ratio	Dividend Payout Ratio (Consolidated)
Fiscal year ended March 31, 2025	40.00 yen	150.00 yen	190.00 yen	11.6%	98.4%
Fiscal year ended March 31, 2026	165.00 yen	–	165.00 yen	9.5%	38.2%
Fiscal year ended March 31, 2027 (Forecast)	–	–	–	–	–

Financial Position and Capital Efficiency

Total assets stood at 201,928 million yen at fiscal year-end, up 9,905 million yen from a year earlier, and the equity-to-asset ratio improved from 53.6% to 57.3%. Compared to FY2025/3, ROE in FY2026/3 increased to 22.0% due to the rise in net income, and ROIC also improved to 14.4% due to the increase in operating income and the decrease in interest-bearing debt. The company was also newly recognized as a DX-Certified Company by the Ministry of Economy, Trade and Industry (December 1, 2025) and as an Outstanding Corporation for Food Education Initiatives 2026 (April 1, 2026).

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