AGC (5201) investor relations material

Executive summary

• Q1 FY2026 net sales rose by JPY 38.4 billion year-over-year to JPY 538 billion, with operating profit up JPY 12.6 billion, driven by yen depreciation, higher shipments in Essential Chemicals Southeast Asia, and pricing policies in architectural glass in Europe.

• Profitability improved in the life science segment and from lower natural gas prices in Europe; profit before tax increased by JPY 18 billion, and profit attributable to owners rose by JPY 16.2 billion.

• Net sales for Q1 2026 rose 7.7% year-over-year to JPY 537,965 million, with operating profit up 48.9% to JPY 38,472 million and profit attributable to owners of the parent surging 243.8% to JPY 22,844 million.

• Strategic businesses contributed 48% of total consolidated operating profit, with strong performance in Performance Chemicals and Life Science.

• Foreign exchange gains and cost reductions contributed to profit growth, while restructuring expenses partially offset gains.

Financial highlights

• Net sales: JPY 538 billion, up JPY 38.4 billion year-over-year; operating profit: JPY 38.5 billion, up JPY 12.6 billion year-over-year.

• Profit before tax: JPY 35 billion, up JPY 18 billion year-over-year; profit attributable to owners: JPY 22.8 billion, up JPY 16.2 billion year-over-year.

• Gross profit increased to JPY 130,410 million from JPY 116,555 million year-over-year.

• Free cash flow: minus JPY 17.1 billion, with operating cash flow at JPY 42.6 billion and investment cash flow at minus JPY 59.7 billion.

• Cash and cash equivalents increased by JPY 25.2 billion from December 2025 to March 2026.

Outlook and guidance

• Full-year outlook remains unchanged from February, with only minimal expected impact from Middle East developments.

• FY2026 full-year net sales forecast at JPY 2,200,000 million, up 6.9% year-over-year; operating profit forecast at JPY 150,000 million, up 17.7%.

• Q2 is expected to see a dip in both profit and net sales due to seasonality, especially in automotive and electronics.

• Strategic businesses are projected to achieve JPY 560 billion in net sales and JPY 80 billion in operating income for the full year.

• Dividend forecast unchanged at JPY 210 per share for FY2026.