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Mitsubishi Chemical Group (4188) investor relations material
Mitsubishi Chemical Group Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q1 FY2025 saw a weak business environment due to global economic uncertainty and U.S. tariffs, but display-related and semiconductor businesses remained strong, aided by Chinese subsidies.
Core operating income for chemicals was ¥11.6 billion, down 28% year-on-year, mainly due to price gap deterioration, lower MMA monomer prices, and inventory valuation losses.
Net income attributable to owners fell 51% year-on-year, primarily from the reclassification of the Pharma segment as discontinued operations.
Comprehensive income attributable to owners dropped to ¥33.6 billion from ¥118.2 billion year-on-year.
Financial highlights
Sales revenue for Q1 FY2025 was ¥880.7 billion, down 13% year-on-year, with declines driven by foreign exchange, sales prices, volume, and business restructuring.
Core operating income was ¥56.6 billion, down 11% year-on-year and at 47% of the first half forecast.
Operating income reached ¥60.9 billion; net income attributable to owners was ¥19.6 billion, down 51% year-on-year.
Free cash flow improved to ¥24.4 billion from negative ¥6.6 billion in the prior year.
Basic earnings per share fell to ¥13.96 from ¥27.87 year-on-year.
Outlook and guidance
Full-year and dividend forecasts remain unchanged, with a midyear dividend of 16 yen and annual dividend of 32 yen per share.
FY2025 sales revenue forecast is ¥3,740.0 billion (down 5.3% year-on-year), with core operating income of ¥265.0 billion (up 15.8%) and net income attributable to owners of ¥145.0 billion (up 222.1%).
Despite a weaker MMA market, progress toward the first half forecast is on track due to strong specialty materials demand and improved price gaps.
Q2 is expected to see softer demand for display-related and automotive products, with profits likely weaker than Q1 in Advanced Films and Polymers.
Carbon products are expected to turn profitable by year-end, with further improvements anticipated in H2.
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