Sumitomo Osaka Cement (5232): FY2025 Results Summary — Operating Profit Up 45.9% on Cement Price Hikes and Lower Coal Costs

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

Note: Sumitomo Osaka Cement does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. Yen amounts shown in tables are in units of ¥100 million, following the source materials.

For the fiscal year ended March 31, 2026 (FY2025), Sumitomo Osaka Cement posted net sales of ¥223.7 billion (+1.9% year on year), operating profit of ¥13.6 billion (+45.9%), ordinary profit of ¥14.4 billion (+53.8%) and net income of ¥11.2 billion (+24.5%), supported by the effect of domestic cement price increases and lower coal prices in the Cement business and by an improved product mix for electrostatic chucks in the New Materials business. ROE and ROIC did not reach the targets of the medium-term management plan, but both improved from the previous fiscal year. The annual dividend per share was ¥120, and the total return ratio averaged 62.0% over FY2023-FY2025, exceeding the medium-term management plan target of 50% or more.

Consolidated Results (FY2025 Actual, Year Ended March 31, 2026)

Net sales increased on domestic cement price increases and a higher share of sales of new-model electrostatic chucks in the New Materials business. Operating profit rose as the Cement business gained from price increases and lower coal prices and the New Materials business gained from the product mix of electrostatic chucks. Non-operating income and expenses improved on a turnaround in foreign exchange gains and losses, while extraordinary income and losses deteriorated, mainly on an impairment loss recorded in connection with the closure of the Ako power plant.

Item	FY2024	FY2025	Change
Net sales (¥100 million)	2,195	2,237	+42 (+1.9%)
Operating profit (¥100 million)	93.5	136.5	+43.0 (+45.9%)
Operating margin	4.3%	6.1%	+1.8pt
Ordinary profit (¥100 million)	93.7	144.1	+50.4 (+53.8%)
Extraordinary income and losses (¥100 million)	34.1	16.4	▲17.7
Net income (¥100 million)	90.1	112.1	+22.0 (+24.5%)
Dividend per share	¥120	¥120	—

Segment Results

The Cement business posted a sharp profit increase on the effect of price increases and lower coal prices. The Mineral Resources business increased sales on price increases but profit declined on higher mining costs. The Construction Materials business saw lower sales and lower profit on a decline in sales volume of repair and reinforcement materials for concrete structures. The New Materials business increased profit on the product mix of electrostatic chucks. The Optoelectronics business improved its profit and loss from the previous fiscal year.

Segment	Net sales FY2024	Net sales FY2025	Operating profit FY2025	Operating margin FY2025
Cement	1,564	1,588	55.0	3.5%
Mineral Resources	174	175	29.9	17.1%
Construction Materials	236	230	14.8	6.4%
New Materials	157	181	24.8	13.7%
Optoelectronics	25	27	▲0.6	▲2.1%
Other	39	36	13.9	39.2%
Total	2,195	2,237	136.5	6.1%

Full-Year Forecast (FY2026, Ending March 31, 2027)

FY2026 (the fiscal year ending March 31, 2027), the first year of the new medium-term management plan (FY2026-FY2028), is expected to bring higher sales and higher profit, mainly on an increase in sales volume of electrostatic chucks in the high-performance products business. The Cement business, on the other hand, is expected to post lower profit on cost deterioration from surging energy prices. Net income is forecast at ¥10.0 billion, reflecting factors such as the reactionary impact of the gain on sales of strategic shareholdings recorded in the previous fiscal year. The dividend forecast is left unchanged at ¥120 per share. Assumptions are an exchange rate of ¥155/US$ (FY2025 average: ¥150/US$) and coal (CIF) at US$140/ton (FY2025: US$135/ton).

Item	FY2025 (Actual)	FY2026 (Forecast)	Change
Net sales (¥100 million)	2,237	2,345	+108 (+4.8%)
Operating profit (¥100 million)	136.5	150.0	+13.5 (+9.9%)
Operating margin	6.1%	6.4%	+0.3pt
Ordinary profit (¥100 million)	144.1	145.0	+0.9 (+0.7%)
Net income (¥100 million)	112.1	100.0	▲12.1 (▲10.8%)
Dividend per share	¥120	¥120	—

Shareholder Returns

The annual dividend per share is left unchanged at ¥120 for both the FY2025 actual and the FY2026 forecast. The total return ratio averaged 62.0% over FY2023-FY2025, exceeding the medium-term management plan target of 50% or more. The total return ratio forecast for FY2026 is 38%. In FY2025 the company executed share buybacks of ¥5.0 billion.

Item	Details
Dividend per share (FY2025 actual)	¥120
Dividend per share (FY2026 forecast)	¥120 (unchanged)
Total return ratio (FY2023-FY2025 average, actual)	62.0% (medium-term management plan target: 50% or more)
Total return ratio (FY2026 forecast)	38%
Share buybacks (FY2025 actual)	¥5.0 billion

Medium-Term Management Plan / Topics

Against the FY2023-FY2025 medium-term management plan, FY2025 actual results were net sales of ¥223.7 billion (target: ¥235.0 billion), operating profit of ¥13.6 billion (target: ¥21.4 billion), ROE of 5.8% (target: 8.0% or more) and ROIC of 3.3% (target: 5.0% or more), all falling short of the targets, although earnings improved substantially from the operating loss in FY2022. FY2026 is the first year of the new medium-term management plan (FY2026-FY2028), whose FY2028 targets are net sales of ¥255.5 billion, operating profit of ¥27.0 billion, ROE of 9.0% or more, ROIC of 6.0% or more, and a total return ratio averaging 50% or more over FY2026-FY2028.

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.