DOWA Holdings Overview
DOWA is a 142-year-old Japanese non-ferrous group that has turned a closed mining district in Akita into a metal-recycling business. It collects e-scrap, spent catalysts, zinc residues and industrial waste, then uses its smelters to recover more than 20 metals. Those metals feed downstream businesses in electronic materials, copper alloys and heat treatment. For the semiconductor supply chain, DOWA matters less as a chip-materials brand than as a critical-metals node. It claims the leading global share in high-purity gallium, makes GaAs wafers and short-wavelength infrared LEDs, and recovers indium from zinc feed. Its Iijima complex in Akita is the main gallium production site outside China. The group earned record net income of JPY 62.5 bn in FY2025, helped by a one-off asset sale. Earnings remain driven more by metal prices and two Mexican mines than by its specialty businesses.
DOWA's fiscal year runs from April to March and is named for the calendar year in which it starts. FY2025 is therefore the year ended 31 March 2026, and FY2026 is the year ending 31 March 2027. Some data vendors label the same periods one year later.
The company describes its mission as contributing to a prosperous society and a resource-circulating society through business conducted on a global stage. Its 2030 vision is to evolve its core businesses, namely resource circulation and the provision of excellent materials and technologies, and so keep contributing to a secure future (Annual Securities Report, FY2025). It groups the five core businesses under two headings. "Resource recycling" covers Environmental Management & Recycling and Nonferrous Metals. "Provision of excellent materials and technologies" covers Electronic Materials, Metal Processing and Heat Treatment.
The independent reading is that DOWA is a vertically linked urban-mining system rather than a conventional smelter. Environmental Management & Recycling is the front end. It collects scrap and hazardous waste, charges a treatment fee and passes metal-bearing feed to group smelters. Intersegment sales from this segment rose to JPY 116.1 bn in FY2025 from JPY 80.0 bn in FY2024, which shows how much value now moves through the internal chain. Nonferrous Metals earns treatment margins, free-metal income and equity income from two Mexican mines. The three materials businesses sell engineered products into automotive, AI-server, energy and consumer electronics chains.
The company does not disclose a split between product, service, subscription and licensing revenue. The closest measure is contract revenue by business line, shown below. Metal-linked product sales dominate, while fee income sits mainly in waste treatment and contracted heat treatment. Royalty income was JPY 976 M in FY2025.
Waste treatment, soil remediation, Southeast Asia: FY2024: 63406; FY2025: 65274
Recycling: FY2024: 108810; FY2025: 154092
Gold, silver, copper and related metals: FY2024: 97740; FY2025: 160439
Platinum group metals: FY2024: 77583; FY2025: 107700
Zinc and indium: FY2024: 91031; FY2025: 96643
Semiconductors and electronic materials: FY2024: 155724; FY2025: 95611
Copper alloys, plating, circuit substrates: FY2024: 128798; FY2025: 147336
Heat treatment and industrial furnaces: FY2024: 33780; FY2025: 33999
Source: Annual Securities Report, FY2025, revenue recognition note.
Value chain position. DOWA sits at three points: end-of-life collection and processing, primary and secondary metal production, and intermediate materials sold to component makers. It does not make finished consumer products. Upstream, it holds minority interests in the Tizapa (39%) and Los Gatos (30%) mines in Mexico.
Customers and end-markets. Customers include waste generators, local governments and manufacturers on the environmental side; precious-metal traders and refiners on the metals side; and connector, lead-frame, LED, battery, magnet and automotive parts makers in materials. Tanaka Kikinzoku Kogyo was the only customer above 10% of sales, at JPY 159888 M or 21.4% of FY2025 revenue (FY2024: JPY 89765 M, 13.2%), mainly through Nonferrous Metals. The company names four growth markets: automotive, information and communications, environment and energy, and medical and healthcare.
Semiconductor relevance. The direct exposures are high-purity gallium and indium, GaAs wafers, GaN HEMT epiwafers, infrared LEDs and photodiodes, and metal-ceramic substrates for power modules. Indirect exposures are copper alloys for AI-server connectors and magnetic powder for data-storage tape. DOWA Eco-System is also named as a participant in semiconductor materials recycling, through precious-metal recovery from electronic scrap. Group disclosures do not report semiconductor revenue separately.
Strategy
Medium-term Plan 2027 (FY2025 to FY2027), published in May 2025, carries the theme "Pursue quality in circularity." Quality has two parts. Compound circulation means new cycles for unused waste, combining recycling with safe treatment. Long-life circulation means durable, efficient materials and services. The basic strategies are creating value, controlling variability and cultivating expectations.
Operating profit (JPY bn): FY2025 actual: 34.1; FY2026 forecast: 53.0; FY2027 target: 47.0
Ordinary profit (JPY bn): FY2025 actual: 54.3; FY2026 forecast: 80.0; FY2027 target: 60.0
ROA (%): FY2025 actual: 7.4; FY2026 forecast: not publicly disclosed; FY2027 target: 9
ROE (%): FY2025 actual: 14.6; FY2026 forecast: not publicly disclosed; FY2027 target: 10
Plan by segment (JPY bn): FY2025 actual: FY2025 ordinary profit; FY2026 forecast: FY2026 forecast; FY2027 target: FY2027 target; Plan capex; Plan development
Environmental Management & Recycling: FY2025 actual: 16.5; FY2026 forecast: 14.5; FY2027 target: 16.0; 50.0; 3.0
Nonferrous Metals: FY2025 actual: 19.6; FY2026 forecast: 53.0; FY2027 target: 23.5; 45.0; 4.0
Electronic Materials: FY2025 actual: 1.1; FY2026 forecast: 2.5; FY2027 target: 6.0; 11.0; 19.0
Metal Processing: FY2025 actual: 9.7; FY2026 forecast: 7.1; FY2027 target: 8.5; 21.5; 3.0
Heat Treatment: FY2025 actual: 2.7; FY2026 forecast: 2.3; FY2027 target: 4.0; 9.0; 1.0
Group targets are being met early by metals, not evenly. The plan assumed JPY 142 per dollar, copper at USD 9000/t and zinc at USD 2600/t, far below current assumptions, while Electronic Materials and Heat Treatment remain behind plan.
Cash inflow after R&D adjustment: Amount: 250.0
Business investment: Amount: 100.0
ESG investment: Amount: 45.0
R&D: Amount: 30.0
M&A and raw materials: Amount: 35.0
Shareholder returns (minimum): Amount: 32.0
Business investment splits into JPY 60 bn for a resource-recycling society and JPY 40 bn for risk-reducing products and services. The JPY 35 bn for M&A and raw materials comprises JPY 20 bn for waste and recycling acquisitions in Japan and Asia and JPY 15 bn for key-mineral procurement. None of the M&A budget had been used by May 2026.
The largest long-term decision is the smelting and recycling complex rebuild, at more than JPY 100 bn: JPY 10 bn in FY2027 and JPY 90 bn over FY2028 to FY2030, continuing beyond. The facilities are more than a century old. The aims are to handle more impurities, broaden recycled feed and raise output of rare metals and critical minerals. Management justifies it on continuity and safety and has given no return figure.
DOWA targets a single-A rating and an equity ratio near 60%, a 50% cut in listed shareholdings by FY2030, and a PBR of at least 1.0x. It estimates cost of equity at 6% to 8%. Fujita Kanko proceeds go in principle to shareholder returns, as a capital review found enough capacity for the plan and rebuild. The ROE target is unchanged for now, with a review once visibility improves.
Apr 2025: Initiative: Tochigi comprehensive recycling base; Detail: About 36000 m² in Oyama; delivery March 2027
2025: Initiative: Kumamoto recycling plant; Detail: Southern Japan coverage
May 2025: Initiative: High-power SWIR SMD; Detail: Sensing and inspection
Nov 2025: Initiative: Asian capital injections; Detail: SGD 35 M Singapore; THB 400 M Thailand
Dec 2025: Initiative: Reused PV demonstration; Detail: One-stop solar panel lifecycle
Feb 2026: Initiative: Fujita Kanko sale and buyback; Detail: Portfolio and capital efficiency
Mar 2026: Initiative: Activated carbon reactivation study; Detail: With Kuraray
Mar 2026: Initiative: Waste carbon footprint service; Detail: Customer Scope 3 data with limited assurance
Apr 2026: Initiative: Metal recycling alliance; Detail: With Nippon Light Metal
Jun 2026: Initiative: Nickel and cobalt sulfate recovery; Detail: Demonstration plant; samples with cathode makers
Jul 2026: Initiative: Regional consolidation; Detail: Akita and Okayama subsidiaries merge April 2027
2026: Initiative: Fuel-cell composite oxide expansion; Detail: Guaranteed minimum volume supports capacity; aspiration of JPY 2 bn to 3 bn yearly profit
2026: Initiative: Silver powder reset; Detail: No longer pursuing China share; other regions; lower-silver products
2026: Initiative: PCB succession; Detail: Hazardous waste, ash melting, biogas, LIB and PV to replace a falling line
The company has announced no group-wide headcount or savings target. Its FY2026 forecast includes a JPY 5.0 bn cost rise linked to the Middle East.
Products & Services
Most products are sold on negotiated contracts or metal-linked formulas, so pricing is not publicly disclosed. Specifications are given where DOWA has published them.
Environmental Management & Recycling
| Offering | Description and capability | Target customers | Notes |
|---|---|---|---|
| Industrial waste incineration | Intermediate treatment, including hazardous waste, at sites such as Chiba, Akita and Okayama | Industrial generators | Hazardous waste growth is a stated offset to falling PCB volumes |
| Low-concentration PCB treatment | Treatment under Japan's statutory regime; index 100 in FY2020, 132 at the FY2024 peak, 109 in FY2025, 67 planned for FY2026 | Holders of PCB waste | Legal disposal deadline 31 March 2027 |
| Controlled landfill | Green Fill Kosaka and Eco-System Hanaoka in Japan; landfill in Thailand and Indonesia | Industrial generators | Expansion among FY2026 priorities |
| Melting and recycling | Ash melting and resource recovery through Meltec and Meltec Iwaki | Local governments, industry | Volumes rising |
| Soil remediation | Surveys and cleaning, including the DME dry magnetic separation method and iron powder for VOC contamination | Developers, construction | Japan's first remediation facility certification, Hanaoka, 2003 |
| Metal recycling | Precious-metal recovery from e-scrap, circuit boards and small appliances | Electronics makers, collectors | Direct collection mainly in North America; expanding in Southeast Asia and India |
| Home appliance recycling | Eco-Recycle at Odate; third plant raised capacity from 2500 to about 5000 t per month | Appliance producer schemes | Third plant started October 2024 |
| Automotive shredder dust | Processing at Kosaka and Okayama | Automotive recycling chain | Started 2002 |
| Used lithium-ion battery recycling | Safe deactivation and black mass recovery; lithium carbonate and, since June 2026, nickel and cobalt sulfate at demonstration stage | Battery holders, cathode makers | FY2027 target of 400% of FY2024 volume; FY2025 at 170% |
| Solar panel recycling and reuse | Non-combustible waste recycling at Soso Smart Eco-Company; reused panel power demonstration | Panel owners | Test began December 2025 |
| Biogas and biofuels | Food waste biogas power, biodiesel in Okayama, Bio-coke development | Food industry, smelters | Bio-coke intended for partial coal coke replacement |
| Southeast Asian waste services | Thailand, Indonesia, Singapore, Myanmar | Multinational manufacturers | Singapore kilns renewed for medical waste |
| Environmental logistics and consulting | DOWA Tsuun; E&E Solutions; Geotechnos | Waste generators | Includes impact assessment |
| Waste carbon footprint data | Primary data for customers' Scope 3 Category 5 | Waste customers | Limited assurance by Intertek; launched from June 2026 at Chiba |
Nonferrous Metals
| Offering | Description and capability | Target customers | Notes |
|---|---|---|---|
| Electrolytic zinc and alloys | Akita Zinc, Iijima; capacity 220000 t per year per DOWA's November 2023 release | Steel, galvanising, alloy users | Largest zinc smelter in Japan by company claim |
| Gold, silver, copper, lead | Kosaka Smelting & Refining, from e-scrap, residues and other recycled feed | Traders, refiners, Tanaka | H2 FY2026 plan: gold 2584 kg, silver 92 t, copper 4321 t, lead 5415 t |
| Tin, antimony, bismuth, tellurium, nickel | Recovered through the smelting circuit | Solder, chemical and battery chains | Reported among segment products |
| Indium | Recovered from zinc feed | ITO and compound semiconductor makers | FY2026 assumption USD 600/kg; Q1 average USD 698/kg |
| Gallium and germanium | Listed among segment products; gallium arises from Iijima zinc by-products | High-purity refining | Basis of DOWA's gallium franchise |
| Platinum, palladium, rhodium | Nippon PGM, 60% owned, from spent auto catalysts | Catalyst and precious metal markets | Collection in the US, Korea and Czech Republic |
| Sulfuric acid | Smelter by-product; Acids Co. is a 50% affiliate | Chemical industry | Disclosed segment product |
| Mine interests | Tizapa 39%; Los Gatos 30% | Concentrate to smelters | FY2025 equity income JPY 2.6 bn and JPY 10.1 bn |
Electronic Materials
| Offering | Description and capability | Target customers | Launch or status |
|---|---|---|---|
| High-purity gallium | 6N or above; made from Iijima zinc by-products and recycled scrap; used in-house and sold; leading global share by company claim | GaAs, GaN and LED makers | Established |
| High-purity indium, antimony, copper, zinc, magnesium, manganese; gallium oxide | 6N or above | Compound semiconductor and electronics makers | Established |
| GaAs substrate wafers | 6-inch, 675 µm, (100), VGF growth; semi-insulating at or above 1E8 Ω·cm; Zn-doped p-type; Si-doped n-type | RF and optoelectronic device makers | Current range, published March 2026 |
| GaN HEMT epiwafers | For mobile, millimetre-wave and EV devices | Power and RF device makers | Current product |
| Infrared LEDs and photodiodes | Near-infrared and SWIR emitters and receivers; new wearable models began mass sales in Q2 FY2025 | Wearables, sensing, machine vision | Next generation targeted for H1 FY2026 |
| SWIR LED chips | Peak 1200 to 1900 nm; sizes 250 µm, 350 µm and 1 mm; 170 mW at 1350 nm and 45 mW at 1900 nm for 1 mm chip | Healthcare, telecom, wearables | Announced February 2024 |
| High-power SWIR SMD | 1040 to 1900 nm; 5 mm package, 3 mm to follow; radiant power up 46% at 1300 nm and 36% at 1460 nm | Inspection, including 1300 nm wafer inspection | Launched May 2025 |
| UV LEDs | Output improvement programme | Curing, skin therapy | World-high output claim, February 2018 |
| Silver powder for solar paste | Conductive powder; volume index fell from 100 in Q1 FY2024 to 17 in Q4 FY2025 | Solar cell paste makers | Strategy reset; lower-silver powders in development |
| Silver nano powder and atomized powder | Specialty sales; atomised powder for MLCCs | Electronics | JPY 2.1 bn sample-sale loss in the FY2026 bridge |
| Copper powder | MLCC external electrodes | Capacitor makers | Established |
| Silver oxide powder | Button batteries; top global share by company claim | Battery makers | Established |
| Composite oxide powder | Fuel-cell electrodes; demand linked to on-site AI data centre power | Fuel-cell makers | Full-scale supply from FY2026 |
| Magnetic powder | Data storage tape | Tape media makers | Moved into profit in FY2025 |
| Carrier and ferrite powders | Copier carriers; bonded magnets | Office equipment, magnet makers | Established |
| Reduced iron powder | Metal powder | Industrial | Established |
| Garnet solid electrolyte | Sinters at about 600°C against 1000°C or more; developed with AIST | Next-generation battery makers | Announced October 2024 |
Metal Processing
| Offering | Description and capability | Target customers | Notes |
|---|---|---|---|
| Copper alloy strip | NB-109 and NB-105 for vehicles; YCuT series for small connectors; C7035, where DOWA reports a dominant share | Connector and lead-frame makers | Upstream processes are the current bottleneck for AI-server demand |
| YCuT-AX | Copper alloy with very high fatigue resistance | Connector makers | Productised per FY2025 R&D disclosure |
| DCNA | Ultra-high-strength alloy for smartphone camera VCM springs | Smartphone suppliers | Productised per FY2025 R&D disclosure |
| Reflow tin plated strip | Advanced Reflow and STAR, heat-resistant and low-insertion-force plating | Automotive connector makers | Second China plant opened March 2021 |
| Precious metal plating | Selective plating for in-vehicle switches and high-voltage terminals | Automotive suppliers | xEV terminals are a plan priority |
| Metal-ceramic substrates | Heat-dissipating substrates for power modules in rail, EV, industrial inverters, solar and wind | Power module makers | Made at Shiojiri since 1992 |
| Copper-graphite base plate | Heat-releasing material for semiconductor modules | Power module makers | Commercialised January 2018 |
| Aluminium integrated finned substrate | Co-developed fine-fin substrate | Power electronics makers | Announced October 2021 |
| Brass rod and forgings | Brass rod through New Nippon Brass | Plumbing and mechanical parts | Established |
Heat Treatment
| Offering | Description and capability | Target customers | Notes |
|---|---|---|---|
| Contract heat treatment | Carburising, nitriding and more than 20 surface treatments | Auto and machinery makers | All domestic plants IATF 16949 certified, June 2023 |
| Industrial furnaces | Turnkey carburising and gas soft-nitriding furnaces plus maintenance | Auto parts makers | FY2025 orders JPY 3850 M; backlog JPY 3769 M |
| Z-TKM | Batch vacuum carburising furnace with almost zero process CO2 | Auto parts makers | Developed May 2022; first equipment order March 2024 |
| V-TKM | Vacuum heat treatment line named alongside Z-TKM | Auto parts makers | Plan priority |
| Ultra-high-temperature and high-pressure furnaces | Development programme | Non-automotive and semiconductor markets | Semiconductors named as a target market |
| Dry coating | Hard films; mass production started | Tooling and auto parts | FY2025 R&D disclosure |
Financial Narrative
Figures are consolidated under Japanese GAAP, from the Annual Securities Report for FY2025 unless noted. EBITDA, ROIC and total debt use S&P Global standardised definitions; debt includes leases.
Income statement
Diluted EPS is not presented because the company has no dilutive shares. Dividends for FY2021 and FY2022 include special dividends of JPY 30 and JPY 25; FY2025 includes JPY 100. Revenue fell at a compound 2.7% a year from FY2021 to FY2025, and rose 1.9% a year from FY2023.
The five-year story is a metals cycle, not a growth trend. FY2021 was a record ordinary-profit year at JPY 76.1 bn on high metal prices, and profit then fell to JPY 43.6 bn by FY2024. FY2025 net income reached a record because of JPY 24960 M in investment gains and JPY 3457 M from an affiliate's capital reduction, while operating margin barely moved. Pre-tax income of JPY 78.1 bn therefore overstates underlying earnings, and the 17.4% effective tax rate was also unusually low. Ordinary profit of JPY 54.3 bn is the fairer measure.
Balance sheet
Inventory is the balance sheet's main driver. It rose about JPY 82 bn in FY2025, as higher metal values inflated stock on hand, and accounted for most of the JPY 120.9 bn rise in total assets. A further JPY 54049 M of borrowed metal sits in current liabilities outside the debt figures above; it behaves like financing. At 30 June 2026, total debt had risen to JPY 114372 M and net debt to JPY 66177 M.
Cash flow
Cash generation swings with metal prices. FY2023 produced JPY 118.6 bn of operating cash flow as inventories unwound; FY2024 and FY2025 absorbed JPY 52.7 bn and JPY 81.4 bn in inventory. The FY2025 cash gain came from selling securities for JPY 40.2 bn, not from operations. The JPY 21766 M FY2025 dividend was paid in FY2026 and is not in the FY2025 figure. Two years of negative free cash flow alongside record reported profit is the main quality-of-earnings point, although much of the inventory build should reverse if metal prices fall.
Ratios
Working-capital days use year-end balances. Leverage is modest and well supported by the A+ rating, but falling interest coverage and a lengthening cash cycle show working capital and higher yen rates starting to matter. ROIC near 6% sits around the low end of the 6% to 8% cost of equity management cites, which explains its emphasis on capital efficiency. The 14.63% ROE in FY2025 reflects the asset sale, not a structural change.
Latest quarter
Q1 FY2026 benefited from higher metal prices, a weak yen (JPY 159.5 per dollar) and JPY 4.35 bn of hedge valuation gains on a falling silver price.
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Segment Overview
| Segment | Lead company | Contents |
|---|---|---|
Environmental Management & Recycling | DOWA ECO-SYSTEM | Waste treatment, landfill, soil remediation, metal and appliance recycling, logistics, Southeast Asian waste |
Nonferrous Metals | DOWA METALS & MINING | Gold, silver, copper, lead, zinc, indium, PGMs, tin, antimony, sulfuric acid; Akita Zinc, Kosaka Smelting & Refining, Nippon PGM; mine stakes |
Electronic Materials | DOWA ELECTRONICS MATERIALS | High-purity metals, compound semiconductor wafers, LEDs, conductive, battery and magnetic materials, reduced iron powder |
Metal Processing | DOWA METALTECH | Copper and copper alloy strip, brass rod, plating, circuit substrates |
Heat Treatment | DOWA THERMOTECH | Contract heat treatment and surface treatment; furnace design, manufacture and maintenance |
Segment net sales including intersegment (JPY Bn) | FY2021 | FY2022 |
Environmental Management & Recycling | 135.0 | 148.0 |
Nonferrous Metals | 455.6 | 433.6 |
Electronic Materials | 175.3 | 138.2 |
Metal Processing | 111.9 | 116.1 |
Heat Treatment | 28.9 | 30.1 |
Segment ordinary profit (JPY Bn) | FY2021 | FY2022 |
Environmental Management & Recycling | 13.6 | 11.9 |
Nonferrous Metals | 42.7 | 33.1 |
Electronic Materials | 6.5 | 4.5 |
Metal Processing | 6.8 | 5.5 |
Heat Treatment | 3.0 | 1.8 |
Segment operating profit (JPY Bn) | FY2023 | FY2024 |
Environmental Management & Recycling | 10.5 | 13.9 |
Nonferrous Metals | 8.9 | 10.5 |
Electronic Materials | 1.6 | -0.5 |
Metal Processing | 4.9 | 5.2 |
Heat Treatment | 2.4 | 2.1 |
External sales (JPY Mn) | FY2024 | FY2025 |
Environmental Management & Recycling | 100,098 | 111,105 |
Nonferrous Metals | 254,096 | 352,169 |
Electronic Materials | 158,382 | 96,137 |
Metal Processing | 128,717 | 147,258 |
Heat Treatment | 33,763 | 33,997 |
Other | 3,614 | 4,742 |
Segment analysis, FY2025 | Share of external sales (%) | External sales growth (%) |
Environmental Management & Recycling | 14.9 | 11.0 |
Nonferrous Metals | 47.2 | 38.6 |
Electronic Materials | 12.9 | -39.3 |
Metal Processing | 19.8 | 14.4 |
Heat Treatment | 4.6 | 0.7 |
Segment other items, FY2025 (JPY Mn) | Assets | Depreciation |
Environmental Management & Recycling | 165,944 | 9,114 |
Nonferrous Metals | 369,388 | 9,114 |
Electronic Materials | 75,524 | 3,281 |
Metal Processing | 131,175 | 4,672 |
Heat Treatment | 47,136 | 2,475 |
Income Statement and Per-Share Data
| Metric (JPY Mn unless stated) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue | 831,794 | 780,060 | 717,194 | 678,672 | 745,410 |
Gross profit | 106,426 | 90,819 | 81,446 | 86,629 | 90,299 |
Operating income | 63,825 | 44,611 | 30,003 | 32,226 | 34,192 |
EBITDA | 86,910 | 69,064 | 55,804 | 61,522 | 65,658 |
Ordinary profit | 76,073 | 55,501 | 44,745 | 43,598 | 54,325 |
Pre-tax income | 77,089 | 45,929 | 43,767 | 38,604 | 78,104 |
Net income attributable to owners | 51,012 | 25,041 | 27,853 | 27,128 | 62,458 |
Basic EPS (JPY) | 857.32 | 420.76 | 467.90 | 455.60 | 1,049.83 |
Dividend per share (JPY) | 130 | 130 | 130 | 150 | 368 |
Gross margin (%) | 12.80 | 11.64 | 11.36 | 12.76 | 12.11 |
Operating margin (%) | 7.67 | 5.72 | 4.18 | 4.75 | 4.59 |
EBITDA margin (%) | 10.45 | 8.85 | 7.78 | 9.06 | 8.81 |
Net margin (%) | 6.13 | 3.21 | 3.88 | 4.00 | 8.38 |
Liquidity & Coverage Ratios
| Metric (JPY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 657,283 | 655,282 | 632,770 | 673,537 | 794,476 |
Cash and deposits | 36,847 | 38,818 | 75,066 | 43,577 | 51,225 |
Inventories | 230,009 | 220,646 | 159,502 | 212,938 | 295,168 |
Short-term debt including current portion | 60,916 | 71,951 | 45,383 | 58,986 | 56,306 |
Long-term debt | 70,708 | 52,816 | 30,527 | 22,280 | 34,384 |
Total debt | 131,624 | 124,767 | 75,910 | 81,266 | 90,690 |
Net debt | 94,777 | 85,949 | 844 | 37,689 | 39,465 |
Net assets | 328,574 | 360,603 | 388,790 | 416,035 | 474,629 |
Goodwill and intangibles | 9,466 | 11,149 | 10,216 | 8,910 | 7,561 |
Working capital | 154,774 | 169,873 | 163,767 | 165,381 | 227,238 |
Cash Flow
| Metric (JPY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow | 59,911 | 50,725 | 118,630 | 12,827 | 5,241 |
Capex (property, plant and equipment) | 28,949 | 29,694 | 36,443 | 45,855 | 34,604 |
Free cash flow | 30,962 | 21,031 | 82,187 | -33,028 | -29,363 |
Investing cash flow | -11,339 | -30,343 | -26,261 | -41,418 | 12,127 |
Financing cash flow | -31,190 | -19,758 | -59,204 | -4,120 | -10,019 |
Dividends paid | 5,709 | 7,809 | 7,811 | 7,815 | 9,021 |
Share buybacks | 1 | 0 | 0 | 0 | 9,991 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 17.62 | 7.61 | 7.76 | 7.03 | 14.63 |
ROA, ordinary profit basis (%) | 12.1 | 8.5 | 6.9 | 6.7 | 7.4 |
ROIC (%) | 11.26 | 6.59 | 4.84 | 5.55 | 5.83 |
Equity ratio (%) | 47.69 | 52.63 | 58.95 | 59.15 | 57.34 |
Current ratio (x) | 1.68 | 1.81 | 1.92 | 1.82 | 1.91 |
Debt to equity (x) | 0.40 | 0.35 | 0.20 | 0.20 | 0.19 |
Net debt to EBITDA (x) | 1.09 | 1.24 | 0.02 | 0.61 | 0.60 |
Interest coverage, operating income (x) | 96.1 | 85.3 | 62.0 | 39.6 | 30.7 |
Asset turnover (x) | 1.33 | 1.19 | 1.11 | 1.04 | 1.02 |
Days sales outstanding | 43.4 | 41.8 | 43.5 | 49.5 | 51.4 |
Days inventory | 115.7 | 116.8 | 91.6 | 131.3 | 164.5 |
Days payable | 31.8 | 27.6 | 29.7 | 30.2 | 39.1 |
Cash conversion cycle (days) | 127.3 | 131.1 | 105.4 | 150.6 | 176.7 |
Balance Sheet
| Q1 (JPY Mn) | Q1 FY2025 | Q1 FY2026 |
|---|---|---|
Net sales | 160,129 | 253,395 |
Gross profit | 19,622 | 39,499 |
Operating profit | 6,494 | 24,748 |
Ordinary profit | 8,616 | 32,527 |
Equity-method income | 1,609 | 6,267 |
Net income attributable to owners | 6,401 | 23,452 |
Geographic revenue (JPY Mn)
| Geographic revenue (JPY Mn) | FY2024 | FY2025 |
|---|---|---|
Japan | 435,430 | 579,012 |
North and Central America | 8,165 | 10,178 |
Europe | 35,043 | 30,102 |
China | 124,571 | 48,027 |
Asia excluding Japan and China | 75,375 | 78,013 |
Other | 86 | 77 |
Revenue by Region (%)
| Geographic analysis (%) | Share FY2024 (%) | Share FY2025 (%) | Growth (%) |
|---|---|---|---|
Japan | 64.2 | 77.7 | 33.0 |
North and Central America | 1.2 | 1.4 | 24.7 |
Europe | 5.2 | 4.0 | -14.1 |
China | 18.4 | 6.4 | -61.4 |
Asia excluding Japan and China | 11.1 | 10.5 | 3.5 |
Revenue by Region
| Property, plant and equipment by region (JPY Mn) | FY2024 | FY2025 |
|---|---|---|
Japan | 158,453 | 163,787 |
North and Central America | 14,031 | 10,583 |
Europe | 316 | 266 |
China | 3,523 | 4,646 |
Asia excluding Japan and China | 32,311 | 31,455 |
Total shareholder return to March (index, March 2021 = 100)
| Total shareholder return to March (index, March 2021 = 100) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
DOWA Holdings | 124.65 | 97.83 | 124.19 | 112.25 | 209.40 |
TOPIX with dividends | 101.99 | 107.92 | 152.53 | 150.17 | 202.20 |
Return to 31 March 2026 (%) | 1 year | 3 years | 5 years | — | — |
DOWA Holdings | 86.5 | 114.1 | 109.4 | — | — |
TOPIX with dividends | 34.6 | 87.4 | 102.2 | — | — |
Valuation At Jpy 7,863 Details
| Valuation at JPY 7,863 (26 Oct 2026) | Value |
|---|---|
Market capitalisation (JPY Bn) | 465 |
Enterprise value including net debt and minorities (JPY Bn) | 547 |
Trailing P/E (x) | 5.9 |
P/E on company FY2026 forecast (x) | 8.2 |
P/E on consensus FY2026 EPS (x) | 7.3 |
EV/EBITDA, trailing (x) | 6.5 |
EV/sales, trailing (x) | 0.65 |
P/B (x) | 1.01 |
Forecast dividend yield (%) | 4.3 |
Analyst Consensus Details
| Analyst consensus (S&P Global, October 2026) | Value |
|---|---|
Analysts covering | 7 |
Consensus Rating Details
| Consensus rating (S&P Global, October 2026) | Hold |
|---|---|
Strong buy | 1 |
Buy | 1 |
Hold | 4 |
Strong sell | 1 |
Average target (JPY) | 10,453 |
High target (JPY) | 12,700 |
Low target (JPY) | 8,570 |
FY2026 revenue estimate (JPY Bn) | 977.3 |
FY2026 EPS estimate (JPY) | 1,077.60 |
Dividends and buybacks
| Dividends and buybacks | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (JPY) | 130 | 130 | 130 | 150 | 368 |
Consolidated payout (%) | 15.2 | 30.9 | 27.8 | 32.9 | 35.1 |
Buyback (JPY Bn) | 0 | 0 | 0 | 0 | 10.0 |
Debt at 31 March 2026 (JPY Mn)
| Debt at 31 March 2026 (JPY Mn) | Amount | Rate or maturity |
|---|---|---|
Short-term loans | 23,096 | 1.93% average |
Current long-term loans | 6,209 | 0.72% average |
Commercial paper | 17,000 | 0.94% average |
Sixth bond | 10,000 | 0.10%, due 24 Sep 2026 |
Seventh bond | 10,000 | 1.53%, due 11 Sep 2030 |
Long-term loans | 24,384 | 1.97% average, to March 2033 |
Long-term loan repayment (JPY Mn) | Amount | — |
1 to 2 years | 8,042 | — |
2 to 3 years | 6,234 | — |
3 to 4 years | 4,072 | — |
4 to 5 years | 3,699 | — |
Analyst Conclusions
Net sales: H1 forecast: 449.4; Full-year forecast: 941.0; Q1 actual: 253.4
Operating profit: H1 forecast: 23.7; Full-year forecast: 53.0; Q1 actual: 24.7
Ordinary profit: H1 forecast: 37.1; Full-year forecast: 80.0; Q1 actual: 32.5
Net income: H1 forecast: 26.6; Full-year forecast: 57.0; Q1 actual: 23.5
Forecasts have been held since May. Q1 operating profit already exceeds the H1 forecast, so the guidance implies a small operating loss in Q2 and only about JPY 4.6 bn of ordinary profit. Management says the outlook is uncertain because gold, silver and platinum are falling, automotive demand is weaker and material prices are rising. July averages were above assumptions: JPY 162.6 per dollar, copper USD 13525, zinc USD 3596, indium USD 774. On published sensitivities and held for a full year, these differences would add about JPY 8.8 bn to operating profit, before any precious-metal effect, so upward revision is plausible. Consensus EPS of JPY 1077.60 already sits about 12% above the company's JPY 963.68.
Bull case.
-
Gallium and indium scarcity makes Iijima strategically more valuable, and the rebuild turns a by-product into a recognised critical-minerals franchise.
-
Fuel-cell oxides, AI-server alloys and SWIR devices together lift materials earnings above plan, reducing metal dependence.
-
At about book value and 8 times forecast earnings, with a 4.3% yield and unused sale proceeds for buybacks, the valuation offers support.
Bear case.
-
Metal prices and the yen normalise toward plan assumptions, and FY2026 proves a peak, as FY2021 did.
-
Heavy spending of more than JPY 100 bn at the complex lowers returns, with no return disclosed and free cash flow already negative.
-
The PCB wind-down, weak silver powder and low zinc terms show structural pressure in legacy profit pools, while ROIC stays near cost of capital.
Q2 FY2026 results: Date: 11 Nov 2026; What to watch: Forecast revision; H2 hedge effects
Corporate strategy briefing: Date: November 2026; What to watch: Rebuild scope, capital structure
US-China and Japan-China trade talks: Date: From Nov 2026; What to watch: Gallium supply and pricing
Q3 results: Date: 9 Feb 2027; What to watch: Dividend and buyback decisions
PCB deadline: Date: 31 Mar 2027; What to watch: Replacement revenue
Tochigi delivery, Eco-System mergers: Date: Mar to Apr 2027; What to watch: Regional capacity and integration
FY2026 results and FY2027 guidance: Date: May 2027; What to watch: ROE target, rebuild capex
Fuel-cell capacity decision: Date: During FY2026; What to watch: Long-term contract scale
Analyst verdict. DOWA deserves more attention from semiconductor supply-chain observers than its reported semiconductor numbers suggest, but it should not be mistaken for a semiconductor growth stock. Its core economic engine is a metals-linked circular system, supported by waste services and specialty materials. The FY2025 record was largely a function of asset sales, and the FY2026 surge is mainly price, currency and Mexican mines. Electronic Materials, the part most relevant to chips, generated only JPY 1.1 bn of ordinary profit in FY2025, and management has said almost nothing publicly about gallium's financial contribution.
That silence is itself the key analytical issue. Iijima is rare gallium capacity outside China at a time when exports to Japan have been severely restricted and ex-China prices are many times higher than domestic Chinese levels. The asset may be worth more strategically than its segment disclosure shows, but investors cannot measure it. The company's real long-term test is the complex rebuild, a century-scale reinvestment that needs to prove it creates returns as well as continuity. A strong balance sheet and A+ rating make that affordable.
For now, the shares near book value look undemanding if ordinary profit can hold well above the FY2024 level of JPY 43.6 bn, yet the cash record and earnings cyclicality justify a discount. The sell-side Hold consensus looks fair: the best outcomes need sustained metal prices or more disclosure. A clearer critical-minerals strategy, faster capital returns and visible materials profit would be the signs that the market should treat DOWA as more than a cyclical smelter.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Director since | Age (Nov 2026) | Background |
|---|---|---|---|---|
SEKIGUCHI Akira | Representative Director, Chairman and CEO | President June 2018; Chairman June 2026 | 66 | Joined 1983; Vancouver office; resources; President of Kosaka Smelting and DOWA Metals & Mining |
FUKUDA Kensaku | Representative Director, President and COO | June 2026 | 60 | Joined 1992; President of Akita Zinc and DOWA Metals & Mining |
KATAGIRI Atsushi | Director, Managing Executive Officer, CHRO | June 2022 | 64 | Joined 1985; zinc business, planning, HR |
HOSONO Hiroyuki | Director, Managing Executive Officer, CFO | June 2022 | 63 | Joined 1991; DOWA Olin Metal President; strategy and IR |
MATSUMOTO Kazuyuki | Director, Executive Officer, CTO | June 2026 | 59 | Joined 1989; magnetic materials; DOWA Electronics Okayama |
YOSHIDA Hiroshi | Director, Executive Officer, CRO | June 2026 | 59 | Joined 2002; Kosaka director; Akita Engineering President |
SATO Kimio | Outside Director | June 2021 | 67 | Former President, Nittetsu Mining; chairs Nominating and Remuneration Committees |
SHIBAYAMA Atsushi | Outside Director | June 2023 | 55 | Professor, Akita University; resource and recycling engineering |
YAMAGUCHI Junko | Outside Director | June 2024 | 70 | NTT group; audit roles; Nikkiso outside director |
TAKEDA Ryoko | Outside Director | June 2026 | 56 | Attorney, City-Yuwa Partners; Japan Airport Terminal and Alconix roles |
TAJIMA Shuichi | Outside Director | June 2026 | 71 | LTCB, GE Capital Japan, Lone Star Japan, Lincoln International |
Audit & Supervisory Board Member | Status | Since | Background | — |
KIMURA Ei | Full-time, inside | June 2025 | Joined 1987; Kosaka executive | — |
TSUTSUMI Azusa | Full-time, outside | June 2024 | CPA; ex-KPMG AZSA | — |
OBA Koichiro | Part-time, outside | June 2023 | Attorney, Marunouchi Sogo Law Office | — |
KOMURO Shingo | Part-time, outside | June 2023 | Fujita Kanko auditor | — |
Directors' Remuneration
| FY2025 compensation (JPY Mn) | Base | Performance-linked | Restricted stock | Total | Recipients |
|---|---|---|---|---|---|
Directors excluding outside | 216 | 134 | 32 | 382 | 6 |
Audit & Supervisory Board Member, inside | 20 | 0 | 0 | 20 | 1 |
Outside officers | 113 | 0 | 0 | 113 | 8 |
SEKIGUCHI Akira (individual) | 69 | 49 | 9 | 128 | 1 |
Major Shareholders
| Shareholder | Shares (thousands) | % excluding treasury shares |
|---|---|---|
The Master Trust Bank of Japan (trust account) | 11,203 | 18.94 |
Custody Bank of Japan (trust account) | 5,703 | 9.64 |
State Street Bank and Trust Company 505001 | 4,222 | 7.14 |
Northern Trust (AVFC) re Silchester International Value Equity Trust | 2,163 | 3.66 |
Northern Trust (AVFC) re US Tax Exempted Pension Funds | 1,681 | 2.84 |
State Street Bank and Trust Company 505103 | 1,076 | 1.82 |
State Street Bank and Trust Company 505223 | 1,067 | 1.81 |
Fujita Kanko Inc. | 996 | 1.69 |
Nippon Life Insurance Company | 925 | 1.57 |
Northern Trust (AVFC) re Non Treaty Clients Account | 884 | 1.50 |
Competitive Landscape
Competitors by Segment
| Segment | Direct competitors | Basis of competition |
|---|---|---|
Environmental and e-scrap | Umicore, Aurubis, Mitsubishi Materials, JX Advanced Metals, Matsuda Sangyo, ARE Holdings, Heraeus, TANAKA Precious Metals | Feed access, recovery range, treatment terms |
Zinc smelting | Mitsui Kinzoku, Toho Zinc, Korea Zinc | Concentrate terms, power, by-products |
Precious metals and PGMs | Umicore, Heraeus, TANAKA, Johnson Matthey | Collection and refining network |
Gallium, compound semiconductors | Chinese refiners, Sumitomo Electric, Freiberger, AXT | Purity, security of supply |
Silver powder | Chinese powder makers | Price, paste performance |
SWIR devices | Hamamatsu Photonics, ams OSRAM | Output, reliability, form factor |
Copper alloys | Mitsubishi Materials, Furukawa Electric, Kobe Steel, JX Advanced Metals, Wieland | Strength, conductivity, qualification |
Power substrates | Rogers, Heraeus Electronics, Ferrotec | Reliability, thermal performance |
Heat treatment | Parker Netsushori, Bodycote, Ipsen | Process, CO2 reduction, service |
Semiconductor recycling | Umicore, Heraeus, TANAKA, JX Advanced Metals, RS Technologies, Veolia | Metals recovery and reclaim |
Peer comparison, year to March 2026 (JPY Bn) | Revenue | Revenue growth (%) |
Mitsubishi Materials | 1,844.1 | -6.0 |
Sumitomo Metal Mining | 1,741.6 | 9.3 |
JX Advanced Metals | 884.6 | 23.7 |
Mitsui Kinzoku | 758.5 | 6.5 |
DOWA Holdings | 745.4 | 9.8 |
ARE Holdings | 570.0 | 12.6 |
Benchmark, year to March 2026 | DOWA | Mitsubishi Materials |
Revenue (JPY Bn) | 745.4 | 1,844.1 |
Revenue growth (%) | 9.8 | -6.0 |
EBITDA margin (%) | 8.8 | 6.0 |
Operating margin (%) | 4.6 | 3.3 |
R&D (% of revenue) | 1.1 | 0.5 |
Recent Developments
The next scheduled event is Q2 results on 11 November 2026.
