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Mitsubishi Chemical Group (4188) investor relations material
Mitsubishi Chemical Group Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Core operating income for H1 FY2025 exceeded initial forecasts, led by Specialty Materials and Industrial Gases, despite ongoing market weakness in MMA and basic materials and uncertainty from U.S. tariffs.
Net income attributable to owners surged 169% year-on-year to ¥110.1 billion, mainly due to proceeds from the sale of Mitsubishi Tanabe Pharma.
Structural reforms and asset optimization progressed, with significant cost reductions and portfolio transformation nearing the JPY 400 billion sales revenue target.
Core operating income declined year-on-year due to lower MMA prices and inventory valuation losses, but was above forecasts.
The transfer of Mitsubishi Tanabe Pharma and affiliates was completed, with results now classified as discontinued operations.
Financial highlights
H1 FY2025 sales revenue was ¥1,799.1 billion, down 10% year-on-year; core operating income was ¥126.1 billion, down 2.6% but exceeded forecasts.
Net income attributable to owners was ¥110.1 billion, up ¥69.2 billion year-on-year, with total comprehensive income at ¥194.6 billion.
Operating profit was ¥86.5 billion; profit before tax was ¥68.7 billion.
Free cash flow reached ¥335.6 billion, supported by asset sales and reduced net interest-bearing debt.
Cash and cash equivalents rose to ¥373.9 billion, with net cash from investing activities boosted by the MTPC sale.
Outlook and guidance
FY2025 sales revenue forecast is ¥3,672 billion, down 1.8% from previous guidance; core operating income forecast revised to ¥250 billion, down 5.7%.
Net income forecast revised from ¥145 billion to ¥125 billion due to accelerated structural reform expenses.
Annual dividend forecast maintained at ¥32 per share.
Demand for Specialty Materials expected to remain firm, while MMA and Basic Materials & Polymers markets are expected to stay sluggish.
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