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Denka Company (4061) investor relations material
Denka Company Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Operating income for 1H FY2025 was ¥9.74 billion, up 3.8% year-over-year and exceeding the initial forecast by ¥2.7 billion, driven by strong demand in Electronics & Innovative Products and offset by DPE-related extraordinary losses and gains.
Net income for 1H FY2025 was ¥3.9 billion, up 15.7% year-over-year, aided by a gain on factory land transfer and a +¥8.6 billion impact from fundamental measures in the chloroprene rubber business.
Extraordinary losses of ¥8.4 billion were recorded due to the DPE plant suspension, largely offset by an ¥8.2 billion gain on the sale of land.
Net sales for 1H FY2025 were ¥196.7 billion, down 1.2% year-over-year, mainly due to price adjustments and a stronger yen, despite higher sales volumes in electronics.
Ordinary income rose to ¥6.8 billion, up 21.8% year-over-year.
Financial highlights
Gross profit for the period was ¥44.7 billion, with a gross margin improvement due to cost reductions.
Basic earnings per share increased to ¥45.28 from ¥39.14 year-over-year.
Comprehensive income turned negative at ¥(1,336) million, mainly due to foreign currency translation losses.
Cash and cash equivalents at period end were ¥28,943 million, down from ¥37,002 million at the previous fiscal year-end.
Operating margin improved to 5.0% from 4.7% year-over-year.
Outlook and guidance
Full-year FY2025 operating income forecast remains at ¥25.0 billion, with net income forecast at ¥15.0 billion and basic EPS of ¥174.06.
Full-year net sales forecast revised downward to ¥400,000 million, mainly due to lower expectations in the Polymer Solutions Division.
Extraordinary losses from DPE are expected to continue in 2H, but further extraordinary gains (e.g., asset sales) are planned to offset these.
Dividend forecast is unchanged at ¥100 per share, with a total return ratio of 57%.
Mission 2030 Phase 2 (FY2026–FY2028) targets ROE of 8% or higher and record-high operating income over ¥40 billion.
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