Iwatani (8088) H2 2026 earnings summary

Executive summary

• Net sales rose 2.9% year-over-year to ¥908.5 billion, driven by strong industrial and materials sectors despite headwinds in energy and helium markets.

• Operating profit declined 17.1% to ¥38.3 billion, mainly due to LPG import price fluctuations, lower helium profitability, and increased SG&A expenses.

• Profit attributable to owners increased 17.8% to ¥47.7 billion, aided by gains from asset sales.

• Comprehensive income surged 87.6% year-over-year to ¥68.2 billion.

• FY2026/2027 forecasts project 5.7% sales growth and a 27.4% rise in operating profit.

Financial highlights

• Gross profit increased 0.7% year-over-year to ¥235.8 billion.

• Ordinary profit declined 10.2% to ¥55.2 billion.

• Free cash flow was ¥35.3 billion, with operating cash flow at ¥59.1 billion and investing outflow at ¥23.7 billion.

• Interest-bearing debt decreased to ¥247.3 billion; capital ratio improved to 48.6%.

• Basic earnings per share rose to ¥207.10 from ¥175.84, reflecting the share split.

Outlook and guidance

• FY2026/2027 net sales forecast at ¥960 billion (+5.7%), operating profit at ¥48.8 billion (+27.4%), ordinary profit at ¥59.0 billion (+6.8%), and profit attributable to owners at ¥45.5 billion (-4.5%).

• Annual dividend forecast for FY2027 is ¥47.00 per share, maintaining a payout ratio above 20%.

• Integrated Energy and Materials segments expected to drive profit growth, with focus on hydrogen, green LPG, and stable supply of critical minerals.