Ishihara Sangyo Kaisha (4028) Q4 2026 earnings summary

Executive summary

• FY2025 (ended March 31, 2026) saw significant growth in revenue and profits, driven by strong performance in Bio Science/Organic Chemicals and favorable foreign exchange rates.

• Net sales rose 6.7% year-over-year to ¥154,897 million, with operating profit up 82.0% to ¥19,077 million and net profit more than doubling to ¥16,636 million.

• Comprehensive income reached ¥18,940 million, a 73.8% increase from the previous year.

• FY2026/FY2027 is forecasted to see declines in both revenue and profits due to the absence of prior year one-time demand, normalization, and increased R&D expenses.

• The company continues to pursue Vision 2030 targets, focusing on profitability, ROE, and shareholder returns.

Financial highlights

• FY2025 revenue: ¥154.8 billion (+¥9.7 billion YoY); operating profit: ¥19.0 billion (+¥8.5 billion YoY); net profit: ¥16.6 billion (+¥8.2 billion YoY).

• Gross profit improved to ¥49,666 million from ¥39,531 million YoY; basic EPS rose to ¥434.78 from ¥219.98.

• FY2026/FY2027 revenue forecast: ¥150.0 billion (−¥4.8 billion YoY); operating profit: ¥14.2 billion (−¥4.8 billion YoY); net profit: ¥9.1 billion (−¥7.5 billion YoY); full-year EPS forecasted at ¥237.82.

• FY2025 ROE: 13.7%; FY2026/FY2027 forecast: 7.0%.

• Equity-to-asset ratio increased to 53.7% from 50.8% YoY.

Outlook and guidance

• FY2026/FY2027 expects lower sales and profits due to normalization after exceptional demand and higher SG&A, especially in Bio Science.

• Shareholder return policy targets a 40% payout ratio and DOE of at least 3%; FY2026 dividend forecast is ¥130/share, FY2027 is ¥120/share.

• Vision 2030 targets: operating profit of ¥24.0 billion, sales over ¥180.0 billion, and stable ROE above 10%.