Dexerials (4980): FY2025 Results Summary – Sales and Business Profit Up on Camera-Module ACF and Optical Semiconductors

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

Dexerials Corporation released its FY25 financial results on May 13, 2026, covering the fiscal year from April 1, 2025 to March 31, 2026 (the company labels this year “FY25”). Net sales rose 3.1% year on year to 113,832 million yen and business profit rose 3.4% to 39,352 million yen, both increasing despite the loss of Phosphor film sales, which were terminated by the end of the first half of the previous fiscal year. Growth was driven by high-value-added products related to camera modules for high-end smartphones, such as Pre-cut Anisotropic Conductive Films (ACF), as well as optical semiconductors. Profit attributable to owners of parent increased 1.0% to 28,009 million yen, while operating profit declined 4.1% to 38,097 million yen. The FX rate for the year was 150.8 JPY/US$, against 152.6 JPY/US$ in FY24.

Consolidated Results (Full-Year Actual)

Excluding FX effects, net sales rose 4.3% and business profit rose 6.6%. EBITDA increased 4.9% to 46,892 million yen and the EBITDA margin improved 0.7 percentage points to 41.2%. ROIC was 22.8% and ROE was 27.3%. The annual dividend per share was unchanged at 58.0 yen, with a dividend payout ratio of 34.8%, DOE of 9.5% and a total payout ratio of 54.0%.

Item	FY25	FY24	YoY Change
Net Sales (JPY Mil)	113,832	110,390	+3.1%
Business Profit (JPY Mil)	39,352	38,068	+3.4%
Operating Profit (JPY Mil)	38,097	39,735	-4.1%
Profit before Tax (JPY Mil)	38,388	39,359	-2.5%
Profit Attributable to Owners of Parent (JPY Mil)	28,009	27,737	+1.0%
Basic Earnings per Share	166.48Yen	162.04Yen	+2.7%
EBITDA (JPY Mil)	46,892	44,708	+4.9%
EBITDA Margin	41.2%	40.5%	+0.7%Pt
ROIC	22.8%	22.9%	-0.1%Pt
ROE	27.3%	30.6%	-3.4%Pt
Dividend per Share	58.0Yen	58.0Yen	+0.0Yen
Dividend Payout Ratio	34.8%	35.8%
DOE	9.5%	10.9%
Total Payout Ratio	54.0%	73.2%

Segment Results

In Optical Materials and Components, net sales fell 5.3% to 47,971 million yen and business profit fell 1.7% to 14,308 million yen; excluding FX effects, net sales were down 4.4% while business profit rose 1.2%. By category, optical films declined 15% (-14% excluding FX effects) on the impact from the termination of Phosphor film sales by the end of the first half of FY24; Anti-reflection films (ARF) were down 0% (+0% excluding FX effects), as a decline in shipment volume of certain laptop PC models adopting the products was offset by an increase in the number of automotive models adopting them and the expansion of display sizes; and optical resin materials rose 3% (+4% excluding FX effects) on higher shipment volumes for models adopting Smart precision Adhesives.

In Electronic Materials and Components, net sales grew 10.4% to 66,724 million yen and business profit grew 6.5% to 25,043 million yen (+11.8% and +10.0% respectively excluding FX effects). By category, secondary protection fuse sales rose 37% (+39% excluding FX effects) on a recovery in production following the completion of inventory adjustments by a major customer for power tool products, in addition to continued sales for battery backup units (BBU) used in data centers; Photonics rose 33% (+34% excluding FX effects) on higher shipping volumes for optical transceivers for data centers and for telecommunications equipment; adhesive materials rose 14% (+16% excluding FX effects); and Anisotropic Conductive Films (ACF) rose 3% (+4% excluding FX effects), driven by strong performance of Pre-cut ACF for camera modules. Net sales by segment include inter-segment transactions.

Segment	Metric	FY25	FY24	YoY Change	Excluding FX effects
Optical Materials and Components	Net Sales (JPY Mil)	47,971	50,647	-5.3%	-4.4%
Optical Materials and Components	Business Profit (JPY Mil)	14,308	14,556	-1.7%	+1.2%
Optical Materials and Components	EBITDA (JPY Mil)	17,847	18,006	-0.9%	+1.5%
Electronic Materials and Components	Net Sales (JPY Mil)	66,724	60,434	+10.4%	+11.8%
Electronic Materials and Components	Business Profit (JPY Mil)	25,043	23,511	+6.5%	+10.0%
Electronic Materials and Components	EBITDA (JPY Mil)	29,044	26,701	+8.8%	+11.8%

FY26 Earnings Forecast

For FY26 (April 1, 2026 to March 31, 2027), Dexerials forecasts net sales of 123,000 million yen (+8.1%) and business profit of 40,000 million yen (+1.6%), on an assumed FX rate of 150.0 JPY/US$. The company assumes a decline in smartphone unit volumes due to rising memory prices while high-end models are expected to expand, and states that the impact of cost increases resulting from the situation in the Middle East through the first half is expected to be limited. Although an increase in fixed costs is expected due to growth investments mainly for optical semiconductors, net sales and profit are expected to increase, driven by the expansion of high-value-added products and the significant growth in optical semiconductors. Profit attributable to owners of parent is forecast to decline 1.8% to 27,500 million yen.

Item	FY26 Forecast	FY25 (Actual)	YoY Change
Net Sales (JPY Mil)	123,000	113,832	+8.1%
Business Profit (JPY Mil)	40,000	39,352	+1.6%
Operating Profit (JPY Mil)	38,500	38,097	+1.1%
Profit Before Tax (JPY Mil)	38,500	38,388	+0.3%
Profit Attributable to Owners of Parent (JPY Mil)	27,500	28,009	-1.8%
Basic Earnings Per Share	163.45Yen	166.48Yen	-1.8%
EBITDA (JPY Mil)	48,700	46,892	+3.9%
EBITDA Margin	39.6%	41.2%	-1.6%Pt
ROIC	17.8%	22.8%	-5.0%Pt
ROE	23.7%	27.3%	-3.6%Pt
Dividend Per Share	64.0Yen	58.0Yen	+6.0 Yen
Dividend Payout Ratio	39.2%	34.8%
DOE	9.2%	9.5%
FX Rate Assumption	150.0JPY/US$	150.8JPY/US$

By segment, Optical Materials and Components is forecast at net sales of 49,000 million yen (+2.1%) and business profit of 14,800 million yen (+3.4%), for a margin of 30.2%. Electronic Materials and Components is forecast at net sales of 74,000 million yen (+10.9%) and business profit of 25,200 million yen (+0.6%), for a margin of 34.1%.

Segment	Metric	FY26 Forecast	FY25	YoY Change
Optical Materials and Components	Net Sales (JPY Mil)	49,000	47,971	+2.1%
Optical Materials and Components	Business Profit (JPY Mil)	14,800	14,308	+3.4%
Optical Materials and Components	Margin	30.2%	29.8%	+0.4%Pt
Optical Materials and Components	EBITDA (JPY Mil)	18,500	17,847	+3.7%
Electronic Materials and Components	Net Sales (JPY Mil)	74,000	66,724	+10.9%
Electronic Materials and Components	Business Profit (JPY Mil)	25,200	25,043	+0.6%
Electronic Materials and Components	Margin	34.1%	37.5%	-3.5%Pt
Electronic Materials and Components	EBITDA (JPY Mil)	30,200	29,044	+4.0%
Consolidated Total	Net Sales (JPY Mil)	123,000	113,832	+8.1%
Consolidated Total	Business Profit (JPY Mil)	40,000	39,352	+1.6%
Consolidated Total	Margin	32.5%	34.6%	-2.0%Pt
Consolidated Total	EBITDA (JPY Mil)	48,700	46,892	+3.9%

Shareholder Returns

The FY25 annual dividend per share was 58.0 yen, unchanged from FY24, with a dividend payout ratio of 34.8%, DOE of 9.5% and a total payout ratio of 54.0%. The total value of share buyback in FY25 was 4,999 million yen. A FY25 year-end dividend of 29.0 yen per share was included in the proposal for the appropriation of surplus at the 14th Annual General Meeting of Shareholders, to be held on June 23, 2026.

For FY26 the company plans an interim dividend of 32.0 yen per share and a year-end dividend of 32.0 yen per share, for an annual total of 64 yen per share, implying a dividend payout ratio of 39.2% and DOE of 9.2%. The Mid-Term Management Plan return policy calls for a total payout ratio of approximately 60% (cumulative total for 5 years), a consolidated dividend payout ratio of approximately 40%, and a lower limit of DOE at 7% (with stable dividends in mind).

Financial Position and Cash Flows

Total assets grew 13,282 million yen to 165,104 million yen as of March 31, 2026, with property, plant and equipment up 27,154 million yen to 76,858 million yen. Cash and cash equivalents declined 18,324 million yen to 16,655 million yen and interest-bearing debt fell 4,571 million yen to 16,506 million yen. Total equity rose 13,448 million yen to 109,363 million yen, and the ratio of equity attributable to owners of parent to total assets improved to 66.2%. Operating cash flow was 27,544 million yen against investing cash flow of -25,061 million yen, leaving free cash flow of 2,482 million yen; financing cash flow was -21,443 million yen. Capital expenditure was 16,774 million yen in FY25, with an FY26 forecast of 63,600 million yen.

Topics

Dexerials states that its mainstay products hold Global No.1 share in their niche markets: Anisotropic Conductive Films (ACF) at 74.0%, Anti-reflection films (ARF) produced utilizing sputtering technology at 92.8%, and Optical elastic resins (SVR) at 54.7% (2024 shares for value amount according to the “Reality and Future Prospect of Display Related Market 2025” issued by Fuji Chimera Research Institute, inc.). Sales of these three mainstay products accounted for approximately 63.8% of total net sales in FY25. The company is executing Mid-Term Management Plan 2028, “Achieving Evolution”. Its share price was JPY 2,114 as of Mar. 31, 2026, for a market capitalization of JPY 369.4 Bil.

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.