DIC (4631) investor relations material

Executive summary

• Net sales for Q1 FY2026 rose 7.8% year-over-year to ¥282.5 billion, driven by robust chemitronics and digital materials demand, favorable currency effects, and strong shipments of high-value-added products.

• Operating income surged 87.7% to ¥24.5 billion, with net income attributable to owners of the parent up 214.7% to ¥19.2 billion, aided by a ¥5.8 billion one-time gain from liability reversal and sale of works of art.

• The company maintained its full-year and first-half forecasts due to uncertainties from the Middle East crisis, with plans to revise guidance if quantifiable impacts emerge.

Financial highlights

• EBITDA for Q1 FY2026 was ¥39.3 billion, up 61.0% year-over-year.

• Operating margin improved to 8.7% from 5.0% year-over-year; excluding the one-time gain, operating income was ¥18.7 billion and margin 6.6%.

• Free cash flow increased to ¥15.7 billion from ¥1.9 billion in the prior year.

• Gross profit rose from ¥58.3 billion to ¥69.4 billion, while selling, general, and administrative expenses decreased slightly.

• Comprehensive income turned positive at ¥26.4 billion, compared to a loss of ¥7.4 billion in the prior year.

Outlook and guidance

• FY2026 full-year net sales forecast is ¥1,100.0 billion (+4.5%), with operating income of ¥56.0 billion (+7.3%) and net income at ¥33.0 billion (+2.0%).

• Annual dividend forecast remains at ¥140 per share.

• No changes to forecasts due to difficulty quantifying Middle East impacts.