Resonac Holdings Corporation
4004・Prime Market・Chemicals
Business
Resonac Holdings Corporation is a holding company established in January 2023 through the integration of the former Showa Denko and the former Showa Denko Materials (formerly Hitachi Chemical). Centered on its core subsidiary Resonac Corporation, the company operates five reportable segments: Semiconductor & Electronic Materials, Mobility, Innovation Materials, Chemical, and Clasus Chemical. With revenue of ¥1,347,125 million (FY2025, ending December 2025), it offers a wide range of products from back-end process materials for AI and advanced semiconductors to petrochemical products. Its main customers are global industrial clients such as semiconductor manufacturers, data center operators, and automobile manufacturers, and the company is currently pursuing a transformation toward becoming a "world-class functional chemicals manufacturer."
Business Model
A structure in which the Semiconductor & Electronic Materials segment, the company's core growth business, drives approximately 99% of consolidated core operating profit. High added value is achieved in back-end process materials such as encapsulants and copper-clad laminates for AI and advanced semiconductors, resulting in a core operating profit margin of 21.2%. Meanwhile, commodity businesses such as petrochemicals (Clasus Chemical) and Chemicals operate under a market-price-linked, low-margin structure. Through business portfolio reform, the company is advancing the divestiture and separation of non-core businesses while concentrating management resources on high-value-added materials businesses.
Company Strengths
The company provides an integrated lineup of materials required for semiconductor back-end processes, including encapsulants, copper-clad laminates (MCL), die bonding materials, and photosensitive films. In FY2025 (ending December 2025), Semiconductor & Electronic Materials segment revenue reached ¥506,336 million (+13.7% YoY), with core operating profit expanding sharply to ¥108,365 million (+47.0% YoY). The company has also achieved fine copper wiring formation technology with a 1.5-micrometer line width for advanced semiconductor packaging.
The company established "JOINT3," a next-generation semiconductor packaging co-creation and evaluation platform involving 27 companies from Japan, the US, Singapore, and elsewhere, and opened an activity base at its Shimodate Plant (Minami-Yuki). Operations are being prepared to begin in 2026. The collaborative network with materials, equipment, and design companies serves as a differentiating factor versus competitors, promoting product adoption through early joint development with customers.
As the only external manufacturer of magnetic disks for hard disk drives (HD Media), the company has captured demand from data centers, achieving steady revenue growth. It ships industry-leading products with a capacity of 3.1 terabytes per disk using aluminum substrates. The company is jointly developing next-generation HDDs using heat-assisted magnetic recording (HAMR) technology with Seagate Technology of the United States.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue peaked at ¥1,419,635 million in FY2021, contracted to ¥1,288,869 million by FY2023, recovered to ¥1,391,480 million in FY2024, but declined again to ¥1,347,125 million in FY2025. The revenue decline trend continued into Q1 FY2026, with revenue of ¥307,892 million (down 4.1% year-on-year). On the other hand, profitability has improved sharply, with core operating profit of ¥33,616 million (up 126.4% year-on-year) and quarterly profit attributable to owners of the parent of ¥15,283 million (up 74.6% year-on-year). As an external factor, expanding demand for advanced semiconductors for AI applications boosted the Semiconductor & Electronic Materials segment, and the effects of structural reforms (narrowing losses in Chemicals) also contributed. Clasus Chemical's large-scale periodic maintenance, conducted once every four years (reducing revenue by ¥27,005 million), was the main cause of the overall decline in revenue for the company, and normalization from the second quarter onward will be key to achieving the full-year forecast.
Growth Strategy
Continued portfolio transformation through concentrated investment in Semiconductor & Electronic Materials and divestiture of non-core businesses.
Capital expenditures are being actively expanded to meet growing demand for back-end process materials (encapsulants, copper-clad laminates, etc.) and front-end process materials (CMP slurry, high-purity gases) for AI and advanced semiconductors. In the first quarter of FY2026, revenue of ¥134,662 million and core operating profit of ¥33,997 million were achieved, and the company aims for continued growth toward the six-month cumulative forecast of ¥295,000 million in revenue and ¥74,300 million in core operating profit.
The automotive molded parts business was transferred to Moriroku Co., Ltd. effective April 1, 2026 (Japan and Thailand). The Fiamm Energy Technology S.p.A. business transfer has also been completed. The impact of the divested assets on the financial statements is currently under review. By streamlining non-core businesses, management resources are being concentrated on the semiconductor materials business to improve asset efficiency.
As graphite electrode sales volume recovered and the effects of structural reforms became apparent, the Chemical segment's core operating loss narrowed significantly to ¥(1,596) million in Q1 FY2026 (compared to ¥(6,274) million in the same period of the prior year). The company has announced a full-year FY2026 forecast of ¥0 million in core operating profit (a return to profitability), supported by the effects of Chemicals price revisions and increased Industrial Gases sales.
Due to the impact of large-scale periodic maintenance conducted once every four years, Q1 FY2026 revenue declined sharply to ¥51,711 million (down 34.3% year on year), with core operating profit of ¥(539) million. With production and sales expected to normalize from the second quarter onward, the company aims to achieve a recovery to a six-month cumulative forecast of ¥120,000 million in revenue and ¥(500) million in core operating profit. As an external factor, the decline in domestic naphtha prices (down ¥8,000/KL year on year) is expected to contribute to improved raw material costs.
Last updated: July 17, 2026