AGC reports mixed results, announces strategic operational shifts

AGC Inc. reported consolidated net sales of JPY1,512.1 bn for the nine months ended September 30, FY2025, a 1.4% decrease year-over-year, while operating profit rose 0.9% to JPY94.8 bn. Profit attributable to owners of the parent significantly increased by JPY145.9 bn to JPY39.5 bn, mainly due to the absence of prior year's losses from the Russian business transfer and Biopharmaceutical CDMO impairment. The company maintains its full-year FY2025 forecast of JPY2,050.0 bn in net sales and JPY120.0 bn in operating profit.

Key operational changes for FY226 onwards include integrating Japan's chemical chain into a single Strategic Business Unit (SBU) to optimize profitability, encompassing electrolysis to performance chemicals. Additionally, the Essential Chemicals business in Southeast Asia will become an independent SBU. The company also announced an organizational change to accelerate productivity innovation across all business activities by leveraging AI and digital technologies.

Segment-wise, Automotive saw increased net sales (+JPY10.6 bn) and operating profit (+JPY12.0 bn), driven by Japanese shipments, improved product mix, and pricing policies. Architectural Glass net sales decreased by JPY8.9 bn, and operating profit decreased by JPY4.0 bn. Electronics net sales declined by JPY7.1 bn, and operating profit decreased by JPY0.4 bn. Life Science net sales fell by JPY3.9 bn, though operating profit saw a JPY0.5 bn increase despite production issues and one-off revenue disappearance.