DIC (4631) Q2 2026 earnings summary

Executive summary

• H1 net sales rose 13.3% to JPY 593.0B and operating income reached a record JPY 51.8B, up 92.2%, supported by digital materials demand and price adjustments.

• Net income attributable to owners of the parent rose 184.1% to JPY 37.2B; ordinary income also reached a record JPY 52.3B.

Financial highlights

• EBITDA rose 64.8% to JPY 80.9B; gross profit increased to JPY 145.2B from JPY 116.8B.

• Operating margin improved to 8.7% from 5.2%; basic EPS was JPY 392.69, versus JPY 138.27.

• Free cash flow increased to JPY 24.1B from JPY 6.0B; operating cash flow was JPY 42.1B, versus JPY 21.5B.

• Net interest-bearing debt fell JPY 6.6B to JPY 382.8B; shareholders’ equity ratio rose to 38.3% and net D/E improved to 0.75x.

Outlook and guidance

• FY2026 forecasts: net sales JPY 1,140.0B (+8.3%), operating income JPY 78.0B (+49.4%), and net income JPY 48.0B (+48.4%).

• Full-year EBITDA forecast is JPY 130.0B (+19.0%); operating margin is forecast at 6.8%, ROE at 10.1%, and EPS at JPY 507.99.

• H2 operating income forecast is JPY 26.1B, including the absence of Q1’s JPY 5.9B gain and an estimated JPY 5B seasonal decline in Color & Display.

• H2 faces an estimated JPY 12B impact from Middle East-related demand reversals and higher-cost inventory, plus a JPY 2.8B FX headwind based on JPY 150/USD.

• Chemitronics’ FY operating margin is forecast at 18%, versus 12% last year.