Daicel (4202) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 2025 were ¥424.8 billion, down 1.8% year-over-year, with operating income at ¥32.4 billion, down 25.0%.

• Income attributable to owners of parent decreased 18.9% year-over-year to ¥35.7 billion.

• Comprehensive income rose 7.0% year-over-year to ¥49,712 million, driven by foreign currency translation gains.

• Sales of airbag inflators increased in the Safety segment, but Materials segment sales declined due to inventory adjustments.

• Productivity improvements and cost reductions supported operating income, but higher depreciation and inventory impacts weighed on results.

Financial highlights

• EBITDA for the period was ¥64.0 billion, down 12.9% year-over-year.

• Gross profit for the nine months was ¥109,836 million, down from ¥121,123 million year-over-year.

• Ordinary profit declined 24.3% year-over-year to ¥33,891 million.

• EPS for the period was ¥134.99, compared to ¥160.30 in the prior year.

• Full-year forecasts: net sales ¥583.0 billion, operating income ¥46.5 billion, EBITDA ¥89.5 billion, net income ¥50.0 billion.

Outlook and guidance

• Full-year progression rates: net sales 72.9%, operating income 69.8%, EBITDA 71.5%, net income 71.4%.

• Projected EPS for the year ending March 31, 2026, is ¥192.75.

• CO plant trouble in January 2026 resolved; financial impact approx. ¥1.0 billion.

• U.S. tariffs on Safety segment being passed through with a six-month delay.

• COC plant start-up postponed to Q4 FY2027 due to slower demand and higher costs.