Formosa Plastics (1301) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were NT$42 billion, down 11.1% year-over-year due to lower ASP and reduced sales volume in key products.

• Revenue increased 2.1% sequentially from Q4 2025, driven by higher sales volume in PVC, HDPE, LLDPE, EVA, NBA, and MTBE, and higher ASP for most products except Caustic Soda.

• Net income for Q1 2026 was NT$3,269 million, a significant increase from NT$50 million in Q1 2025, driven by strong equity method investment gains and improved non-operating income.

• Total comprehensive income for Q1 2026 reached NT$30,178 million, up from NT$4,461 million in Q1 2025, mainly due to substantial other comprehensive income from equity investments.

• Pre-tax income improved in Q1 2026 compared to Q4 2025, mainly from increased investment income from FPCC.

Financial highlights

• Q1 2026 net sales: NT$42 billion; Q1 2025 net sales: NT$47 billion.

• Q1 2026 consolidated revenue: NT$41,985 million, up from NT$41,104 million in Q4 2025.

• Pre-tax income in Q1 2026: NT$111 million, a recovery from a loss of NT$6,871 million in Q4 2025.

• Gross profit for Q1 2026 was NT$1,555 million (4% margin), down from NT$2,460 million (5% margin) in Q1 2025.

• Basic and diluted EPS for Q1 2026 were NT$0.51, compared to NT$0.01 in Q1 2025.

Segment performance

• PVC contributed 20% of revenue in both Q1 2026 and Q1 2025.

• PE (HDPE/EVA/LLDPE) share increased to 23% in Q1 2026 from 18% in Q1 2025.

• Specialty Chemicals (AN/MMA/MTBE) accounted for 9% of revenue in both periods.

• Caustic Soda and AE were the main profit contributors in Q1 2026.

• All major divisions reported lower revenues year-over-year, but segment profit improved to NT$4,815 million from NT$125 million in Q1 2025.