2025 Fiscal Year (March 2026) Financial Results Explanation Material

Overview of Fiscal Year 2025 Results

Sumitomo Osaka Cement Co., Ltd. achieved increased profits in fiscal year 2025 (ending March 2026), with sales reaching 223.7 billion yen (up 1.9%) and operating profit of 13.6 billion yen (up 45.9%). ROE stood at 5.8% and ROIC improved to 3.3% from the prior year. The cement segment's profit increased due to domestic price hikes and lower coal prices, while the new materials segment also grew through improved product compositions such as electrostatic chucks. Conversely, extraordinary losses worsened due to impairment losses related to the abolition of Akaho Power Plant. The dividend per share remains unchanged at 120 yen.

Forecast for 2026 Business Results and Mid-term Management Plan

For the fiscal year 2026 (ending March 2027), the forecast projects sales of 234.5 billion yen (up 4.8%), operating profit of 15.0 billion yen (up 9.9%), and net income attributable to owners of the parent of 10.0 billion yen (down 10.8%). Operating and ordinary profits are expected to grow due to increased sales of high-performance products and electrostatic chucks, but net income is likely to decline due to the reversal effect of gains on policy-holdings from the previous year. The mid-term management plan aims for sales of 255.5 billion yen, operating profit of 27.0 billion yen, ROE of 9.0% or higher, ROIC of 6.0% or higher, and a total shareholder return ratio of over 50%.