Daicel (4202) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026/3 were ¥579.6 billion, down 1.2% year-over-year, with operating income at ¥42.1 billion, down 31.0%, and profit attributable to owners of parent at ¥10.2 billion, down 79.4%, mainly due to impairment losses at the new COC resin plant.

• EBITDA declined 16.6% to ¥85.4 billion, and comprehensive income was ¥27,343 million, down 11.6% year-over-year.

• FY2027/3 forecasts project net sales of ¥595.0 billion (+2.7% YoY), operating income of ¥42.5 billion (+1.0%), and profit attributable to owners of parent of ¥32.0 billion (+214.3%).

• The global economy showed gradual recovery, but uncertainty persisted due to geopolitical risks and sluggish conditions in China.

Financial highlights

• ROE dropped to 2.8% (from 13.8%), and ROIC to 4.2% (from 6.1%) in FY2026/3.

• EPS fell to ¥38.75 from ¥181.44 year-over-year.

• Cash flows from operating activities decreased to ¥67.8 billion, with free cash flow at ¥20.1 billion.

• Annual dividend maintained at ¥60 per share; 10.09 million shares repurchased for ¥13.7–13.8 billion.

• Operating profit margin fell to 7.3% from 10.4% year-over-year.

Outlook and guidance

• FY2027/3 expects recovery in profit due to absence of impairment losses and improved segment performance, despite ongoing raw material cost pressures.

• Dividend policy for FY2027/3 to be announced with the new mid-term strategy.

• Revenue growth driven by higher sales in engineering plastics and automotive inflators; operating profit to rise slightly, but ordinary income to decline due to lower dividend income and equity method profits.