AGC (5201) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 net sales rose by JPY 38.4 billion year-over-year to JPY 538 billion, with operating profit up JPY 12.6 billion to JPY 38.5 billion, driven by yen depreciation, higher shipments in Essential Chemicals Southeast Asia, and pricing policies in architectural glass in Europe.

• Profit before tax increased by JPY 18 billion to JPY 35 billion, and profit attributable to owners rose by JPY 16.2 billion to JPY 22.8 billion year-over-year.

• Comprehensive income for the period reached JPY 35,005 million, reversing a loss in the prior year.

• Strategic businesses contributed 48% of total consolidated operating profit, with strong performance in Performance Chemicals and Life Science.

• Foreign exchange gains and cost reductions contributed to profit growth, while restructuring expenses partially offset gains.

Financial highlights

• Total assets reached JPY 2,995.5 billion, up JPY 45.5 billion from year-end, with a D/E ratio of 0.41.

• Operating cash flow was JPY 42.6 billion, investment cash flow was minus JPY 59.7 billion, resulting in free cash flow of minus JPY 17.1 billion.

• Gross profit increased to JPY 130,410 million from JPY 116,555 million year-over-year.

• Basic earnings per share rose to JPY 107.73 from JPY 31.35 year-over-year.

• Cash and cash equivalents increased by JPY 25.2 billion from December 2025 to March 2026.

Outlook and guidance

• Full-year FY2026 outlook unchanged: net sales JPY 2,200 billion, operating profit JPY 150 billion, profit before tax JPY 124 billion, ROE 5.2%.

• Minimal expected impact from Middle East developments; measures in place for raw material supply stability.

• Q2 is expected to see a dip in both net sales and profit due to seasonality, especially in automotive and electronics, while chemicals will see increased sales but lower profit due to the absence of one-time gains.

• Strategic businesses are projected to achieve JPY 560 billion in net sales and JPY 80 billion in operating income for the full year.

• Dividend forecast unchanged at JPY 210 per share for FY2026.