Kaneka (4118) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months of FY2025 were ¥598.3 billion, nearly flat year-over-year, while operating income dropped 23.8% to ¥22.2 billion and net income rose 4.0% to ¥18.4 billion.

• Despite sales and profit declines in most segments, net income rose due to extraordinary gains and improved performance in Health Care and Nutrition units.

• Operating income was pressured by sluggish Asian Vinyls markets and slow U.S. housing demand, partially offset by strong Medical sales and reduced cross-shareholdings.

• Notable product and technology developments included Green Planet’s award-winning adoption and progress in perovskite solar cell commercialization.

Financial highlights

• Net sales decreased by 0.8% year-over-year; operating income fell by 23.8%; ordinary income declined by 26.1%.

• Gross profit for the period was ¥164,571 million, with a gross margin of 27.5%.

• Extraordinary income of ¥10,198 million, mainly from gain on sales of investment securities, contributed to higher net income.

• Net income attributable to owners increased by 4.0% year-over-year; net income per share rose to ¥296.72.

• Comprehensive income rose to ¥30,649 million, up 32.4% year-over-year.

Outlook and guidance

• FY2025 full-year net sales forecast revised to ¥800.0 billion, with operating income expected at ¥34.0 billion and net income at ¥31.5 billion.

• Earnings recovery is expected in 4Q, led by Health Care and Quality of Life units, with continued portfolio transformation toward Life Science businesses.

• Dividend per share forecast at ¥160, up from ¥130 in the previous year; ROE projected at 6.5%.

• Weak overseas Vinyls markets and modest recovery in U.S./European housing expected to persist; Health Care segment to drive performance recovery.