KH Neochem (4189) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 declined 11.2% year-over-year to ¥25.6 billion, reflecting weaker demand in key segments.

• Operating income for Q1 FY2026 decreased by 22.6% year-over-year to ¥2.1 billion, aligning with internal forecasts.

• Net income attributable to owners was ¥1.3 billion, a 23.8% decline year-over-year.

• Electronic Materials segment achieved over 30% growth in operating income, driven by robust semiconductor demand.

• Comprehensive income for Q1 2026 was ¥1.85 billion, up 21.9% year-over-year.

Financial highlights

• Operating income margin fell to 8.2% from 9.4% year-over-year.

• Ordinary income dropped 26% year-over-year to ¥1.9 billion.

• EBITDA declined 13% year-over-year to ¥3.6 billion.

• Basic earnings per share for Q1 2026 was ¥38.49, down from ¥47.98 in Q1 2025.

• Total assets as of March 31, 2026 were ¥122.3 billion, down from ¥130.1 billion at year-end 2025.

Outlook and guidance

• FY2026 full-year net sales forecast at ¥114.0 billion and operating income forecast at ¥13.5 billion.

• Net income attributable to owners expected to increase 11.5% to ¥8.7 billion for the full year.

• Annual dividend forecast raised to ¥110.00 per share, up from ¥105.00 in 2025.

• The impact of Middle East tensions has not been incorporated into earnings forecasts due to high uncertainty.