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Sumitomo Chemical Company (4005) investor relations material
Sumitomo Chemical Company Q2 2027 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
H1 FY2026 core operating income rose to ¥144.5B from ¥108.7B and attributable net income to ¥82.9B from ¥39.7B; both exceeded the August forecast, with results ranking second-highest on record.
Higher equity-method income, semiconductor-material shipments, petrochemical improvement and temporary inventory valuation gains supported results.
Financial highlights
Sales revenue was ¥1,172.8B, up ¥77.4B or 7.1% YoY; operating income was ¥138.1B, up ¥34.4B or 33.2%.
Core operating income was ¥144.5B, up ¥35.8B; equity-method investment income was ¥36.7B versus a ¥27.3B loss YoY.
Net income was ¥105.7B versus ¥90.9B; attributable net income was ¥82.9B versus ¥39.7B, up 108.8%.
Income before taxes rose 38.7% to ¥121.9B; tax expense was ¥16.3B versus a ¥3.0B tax benefit in the prior-year period.
Revenue gains from selling prices (+¥84B) and FX (+¥58.1B) were partly offset by volume (-¥64.7B); non-recurring items were a ¥6.5B loss.
Outlook and guidance
FY2026 forecasts: revenue ¥2,490B, core operating income ¥270B, operating income ¥215B and attributable net income ¥90B; revisions were +¥130B, +¥55B, +¥38B and +¥20B, respectively.
Excluding business-sale gains, core operating income is forecast at ~¥260B; forecast excludes the timing difference in the FY2025 partial Petro Rabigh share sale.
FY2026 assumptions: USD/JPY 150 for H2 and 157 for the full year; naphtha ¥99,000/kL for the full year. ROE is forecast at 8.6%.
Core operating income forecasts rose to ¥60B for ICT & Mobility, ¥75B for Essential & Green Materials and ¥108B for Sumitomo Pharma; Agro & Life Solutions was unchanged.
Annual dividend guidance rose to ¥17/share, including ¥8 interim and ¥9 year-end; the prior ¥24/share record remains an objective subject to performance and uncertainty.
- Core operating income and net income soared, with strong outlook despite market uncertainties.4005
Q1 2027 - Core operating income and net income rose sharply, with FY2026 set for further growth.4005
Q4 2026 - Profits soared year-over-year, prompting upward revisions to forecasts and dividends.4005
Q3 2026 - Profitability rebounded sharply, driven by pharma gains, asset sales, and improved margins.4005
Q2 2026 - Core operating income rose sharply despite lower sales and FX losses; outlook is positive.4005
Q1 2026 - V-shaped profit recovery and portfolio restructuring drive improved FY2024 outlook.4005
Q2 2025 - Targets JPY 200B core income by 2027 and JPY 350B by 2035, led by Agro and ICT growth.4005
Status Update - FY2024 saw a sharp profit rebound and improved cash flow, with higher dividends ahead.4005
Q4 2025 - Q3 FY2024 delivered a strong profit rebound and segment growth, with guidance maintained.4005
Q3 2025
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