Daicel (4202) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026/3 were ¥139.3bn, down 4.3% year-over-year, mainly due to foreign exchange fluctuations, lower sales in Materials and Engineering Plastics, and a slowing global recovery.

• Operating income fell 25.3% year-over-year to ¥13.0bn, impacted by inventory carryover, increased depreciation, and regional uncertainties, despite productivity gains in Safety.

• Income attributable to owners of parent dropped 40.6% year-over-year to ¥9.6bn, as prior year included a gain from sale of shares in affiliates.

• Comprehensive income declined 67.2% to ¥11.13bn compared to the same quarter last year.

Financial highlights

• EBITDA for 1Q was ¥22.8bn, down 15.3% year-over-year.

• Ordinary income decreased 32.1% year-over-year to ¥12.3bn.

• Gross profit decreased to ¥39.96bn from ¥43.53bn year-over-year.

• EPS for the quarter was ¥36.29, compared to ¥58.70 in the prior year.

• Total assets increased to ¥839.85bn as of June 30, 2025, up from ¥813.83bn at March 31, 2025.

Outlook and guidance

• 1Q net sales were in line with the first half forecast; operating income exceeded expectations due to cost reductions and deferred expenses.

• 2Q operating income is expected to decline due to lower automobile production and recognition of deferred expenses.

• Full-year FY2026 net sales forecast at ¥600bn, with operating income projected at ¥54bn and net income at ¥54bn.

• Operating profit projected at ¥54bn (up 9.1%), ordinary profit at ¥56bn (up 10.1%), and EPS forecast for the year is ¥203.68.

• US tariffs are impacting Safety and Engineering Plastics, with price increases planned after 3Q.