Kaneka (4118) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 0.4% year-over-year to ¥397.4 billion, while operating income declined 21.7% to ¥15.0 billion and net income increased 8.7% to ¥11.0 billion.

• Comprehensive income increased 53.4% to ¥14.5 billion.

• Profitability was pressured by sluggish Asian vinyls markets, weak U.S. and European construction demand, and delayed recovery in electronics and industrial segments.

• Medical segment saw strong sales expansion, supported by new production capacity and a business transfer agreement for Zeon Corporation's medical device business.

• The business environment was impacted by global economic stagnation, U.S. tariff policy, inflation, and weak demand in key markets.

Financial highlights

• Operating income margin decreased to 3.8% from 4.8% year-over-year.

• Net income per share increased to ¥176.51 from ¥160.48 year-over-year.

• Equity ratio remained stable at 51.3%; debt/equity ratio at 0.44.

• Cash and cash equivalents at period end were ¥44.3 billion, up from ¥38.1 billion.

• Net cash from operating activities: ¥24.6 billion; investing activities used ¥15.3 billion; financing activities used ¥9.4 billion.

Outlook and guidance

• Full-year net sales forecast revised to ¥800.0 billion, down from previous ¥820.0 billion; operating income forecast at ¥37.0 billion, down from ¥42.0 billion.

• Net income forecast maintained at ¥33.0 billion; dividend per share expected at ¥160.

• Recovery expected in 2H for Material, Health Care, and Nutrition segments, with continued expansion in Medical.