Artience (4634) Q1 2026 earnings summary

Executive summary

• Net sales rose 7.5% year-over-year to ¥88.3 billion in Q1 FY12/2026, with operating profit up 16.1% to ¥5.2 billion and profit attributable to owners of parent up 123% to ¥6.6 billion, driven by gains on sales of investment securities and solid demand in key segments.

• Growth was supported by front-loaded orders amid raw material supply concerns, effective price revisions, and recovery in CF materials for large-size displays.

• All business segments reported year-over-year increases in both sales and operating profit, with continued strength in adhesives, inks, and packaging.

Financial highlights

• Operating margin improved to 5.9% from 5.5% year-over-year.

• Overseas sales ratio increased to 56.6% from 54.5% year-over-year.

• Gains on sales of investment securities contributed ¥3.6 billion to profit.

• Ordinary profit surged 45.4% year-over-year to ¥6,115 million.

• Basic EPS rose to ¥139.89 from ¥58.50 year-over-year.

Outlook and guidance

• Full-year forecasts for FY12/2026 maintained: net sales ¥360.0 billion, operating profit ¥23.0 billion, profit attributable to owners of parent ¥21.0 billion.

• Dividend forecast raised to ¥120 per share, with a total payout ratio target of 50% or more.

• Management is monitoring Middle East instability and raw material price volatility, with readiness to revise forecasts if needed.