Overview of Fiscal Year 2025 Financial Results and Earnings Forecast for Fiscal Year 2026

Overview of Fiscal Year 2025 Financial Results

In fiscal year 2025, revenue was 1.6688 trillion yen, a decrease of 8% from the previous year. Core operating income was 100 billion yen, a 1% decrease, while net income attributable to owners of parent increased by 7% to 34.4 billion yen. In growth areas, mobility solutions sales remained strong, resulting in a 6.2 billion yen increase in profit. Conversely, in Basic & Green Materials (B&GM), decreased demand and stock valuation losses due to falling naphtha prices led to a 7 billion yen decrease. Additionally, U.S. tariff policies contributed approximately 3 billion yen in losses.

Outline of Earnings Forecast for Fiscal Year 2026

For FY2026, the core operating income is projected to be 105 billion yen (up 5% YoY). Despite an improvement of 15.4 billion yen driven by expanded growth segment operations, structural reforms in B&GM, and the resolution of transient factors, losses of approximately 15 billion yen are anticipated due to geopolitical risks in the Middle East. Revenue projections are unspecified, but demand expansion in ICT solutions and steady increases in sales volume for Life & Healthcare Solutions are expected to support growth.