 Hagihara Industries [HI] (7856 JP) reported FY25 (Oct year-end) earnings results on 8 December 2025, coming in with operating profit [OP] of ¥1,467mil (-30.0% YoY) on sales of ¥31,936mil (-3.6% YoY), which overshot the company’s revised guidance of OP of ¥1,420mil (-32.3% YoY) on sales of ¥31,100mil (-6.1% YoY). The full-year guidance was revised from OP of ¥2,400mil (+14.4% YoY) on sales of ¥34,000mil (+2.7% YoY) on 6 October. Management guides for full-FY26 1H OP of ¥1,000mil (+11.2% YoY) on sales of ¥17,100mil (+4.3% YoY), and FY26 OP of ¥2,100mil (+43.1% YoY) on sales of ¥35,000mil (+9.6% YoY) based on (1) Naphtha and FOREX assumptions of ¥64,000/kl and ¥150/US$, respectively and that (2) the PLS and the ENG segments see sales growth of approx. +10% YoY. DOE was introduced as a measure for shareholder returns in H1. The firm aims to pay DOE of 3.5% during the MTP. In FY26 alone, HI is guiding for an annual dividend of ¥75.00/share (dividend payout ratio of 69.8%) vs. ¥65.00/share (payout ratio of 50.6% / DOE of 3.0%) in FY25.