Nippon Shokubai (4114) investor relations material

Executive summary

• H1 FY2026 revenue rose 16.8% YoY to ¥233,778 million; operating profit increased 52.1% to ¥13,707 million and net profit attributable to owners rose 55.7% to ¥11,850 million.

• Growth reflected favorable inventory valuation changes, price pass-through, improved spreads and Solutions volumes, partly offset by lower Materials volumes, higher costs and an impairment loss.

Financial highlights

• H1 profit before tax increased 56.1% YoY to ¥16,853 million; segment income reached ¥16.7 billion, up 73.6%.

• Operating cash flow was ¥19,893 million versus ¥25.5 billion; working-capital changes were a ¥11.1 billion outflow and free cash flow was negative ¥1.9 billion.

• Total assets rose ¥22.0 billion to ¥602.2 billion; borrowings increased ¥7.0 billion to ¥65.7 billion.

Outlook and guidance

• FY2026 forecast was revised to revenue of ¥475.0 billion and operating profit of ¥22.0 billion, increases of ¥20.0 billion and ¥1.0 billion from the August forecast; attributable profit forecast is ¥20.5 billion.

• H2 forecasts are revenue ¥241.2 billion, operating profit ¥8.3 billion and attributable profit ¥8.7 billion; raw material prices are expected to remain high and H2 spreads to narrow from H1.

• FY2026 forecast assumptions include domestic naphtha at ¥100,000/kL, USD/JPY 158 and EUR/JPY 175 for H2; full-year operating margin is projected at 4.6%.