Asahi Kasei Corporation (TSE: 3407), the Tokyo-based diversified chemicals, healthcare and homebuilding conglomerate, reported FY3/2026 consolidated J-GAAP results showing a solid mid-teens earnings advance on the strength of two of its three reporting segments. Revenue rose 1.2% to ¥3,074.5 billion, operating profit climbed 9.1% to ¥231.2 billion, ordinary profit advanced 19.1% to ¥230.4 billion, and profit attributable to owners of the parent jumped 17.6% to ¥158.8 billion. Basic EPS came in at ¥116.97 (vs ¥97.94), ROE climbed to 8.0% from 7.4%, and the equity ratio strengthened to 50.5% from 46.3%.
Healthcare lifts on drug volume and Calliditas consolidation
The Healthcare segment delivered revenue of ¥664.1 billion (up ¥48.2 billion year-on-year) and operating profit of ¥83.5 billion (up ¥19.4 billion). The pharmaceuticals sub-business grew on higher mainline drug volumes plus the full-period contribution of Calliditas Therapeutics AB, the Swedish kidney-disease specialist Asahi Kasei consolidated from October 2024. Critical Care benefited from a higher base of new "LifeVest®" wearable-defibrillator patients and the launch of a next-generation defibrillator product, though SG&A growth tempered the profit lift. Life Science was the weakest sub-segment, with the planned divestment of the blood purification business and rising overheads outweighing higher "Planova™" virus-removal-filter volumes.
Homes posts record profit; Materials hit by maintenance and inventory
The Homes segment booked revenue of ¥1,077.4 billion (up ¥41.5 billion) and operating profit of ¥99.8 billion (up ¥3.9 billion) — a record. Domestic construction posted higher average unit prices through larger, higher-spec projects, the rental management and brokerage businesses grew on a wider managed portfolio, and the building materials business benefited from price pass-through. Offsetting this, North American homebuilding was hit by weaker demand volumes and selling-price pressure.
The Materials segment, which spans essential chemicals, fibers and electronic materials, was the laggard — held back by an inventory-receivable timing effect on essential chemicals and the impact of a scheduled plant turnaround. Despite the segment drag, the group's overall increase in equity-method investment gains (Asahi Kasei swung to ¥9.0 billion in such gains from a ¥7.2 billion loss in the prior year) and lower tax expense translated lower-line operating gains into a sharper net profit advance.
Portfolio reshuffle: Daramic, Asahi Kasei Medical exit; Calliditas in
The fiscal year saw a material reshape of the consolidation scope. On the exit side, Asahi Kasei removed Asahi Kasei Medical Co., Ltd. and four of its consolidated subsidiaries from the group (the blood purification divestment noted above), and also deconsolidated Daramic, LLC and 14 subsidiaries — the U.S.-based battery separator maker that Asahi Kasei acquired in 2015 and that has weighed on Materials returns in recent years. Added on the entry side: 21 newly consolidated entities, including Nagase Diagnostics K.K. Together these moves narrow the group's footprint in lower-return businesses and concentrate capital in healthcare and homes.
Balance sheet strengthens; dividend lifted to ¥42
Total assets rose to ¥4,137.9 billion from ¥4,015.2 billion, and net assets climbed to ¥2,165.6 billion from ¥1,913.9 billion as comprehensive income surged 123.1% to ¥293.3 billion. Cash flow from operating activities was modestly higher at ¥303.1 billion, while investing outflows widened to ¥381.2 billion on bolt-on healthcare investments. The annual dividend was raised to ¥42 per share (¥20 interim + ¥22 year-end), up from ¥38, for a payout ratio of 35.9% and total dividends of ¥57.1 billion. Management guides a further dividend lift to ¥44 in FY3/2027 (¥22 + ¥22), implying a payout ratio of 36.8%.
FY27 guidance: steady 6–7% top-line and OP growth
For FY3/2027, Asahi Kasei guides revenue of ¥3,254.0 billion (+5.8%), operating profit of ¥248.0 billion (+7.3%), ordinary profit of ¥247.5 billion (+7.4%), and profit attributable to owners of the parent of ¥160.0 billion (+0.8%) — the slimmer bottom-line growth reflects the loss of one-time tax tailwinds. Basic EPS is guided at ¥119.65. No material going-concern items or significant subsequent events were noted; the report is subject to ongoing statutory audit procedures.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 3,074.5 | 3,037.3 | +1.2% |
| Operating profit (¥ billion) | 231.2 | 211.9 | +9.1% |
| Ordinary profit (¥ billion) | 230.4 | 193.5 | +19.1% |
| Profit attrib. to owners (¥ billion) | 158.8 | 135.0 | +17.6% |
| Basic EPS (¥) | 116.97 | 97.94 | +19.4% |
| ROE | 8.0% | 7.4% | +0.6pp |
| Equity ratio | 50.5% | 46.3% | +4.2pp |
| Annual dividend (¥) | 42.00 | 38.00 | +10.5% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.