Kunimine Industries (5388) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue and profit for the third consecutive year, driven by strong bentonite and agri business performance.

• Revenue increased 8.7% year-over-year to ¥17,075 million, with operating profit up 25.1% and net profit attributable to shareholders rising 24.4%.

• Growth was driven by strong performance in the Bentonite and Agri segments, while the Clay Science segment saw a slight decline.

• Strategic focus on high-value products, price revisions, and capturing robust agrochemical demand.

• The company responded to cost pressures with price revisions and cost reduction initiatives.

Financial highlights

• Revenue: ¥17,075 million (+8.7% year-over-year).

• Operating profit: ¥1,602 million (+25.1% year-over-year); Ordinary profit: ¥1,954 million (+23.5% YoY).

• Net income attributable to parent: ¥1,340 million (+24.4% year-over-year), aided by ¥183 million in investment securities gains.

• Operating profit margin: 9.4% (up 1.2pt year-over-year); ROE: 6.1% (up 1.1pt year-over-year).

• Total assets: ¥26,844 million (+¥1,005 million YoY); Equity ratio: 83.0%.

Outlook and guidance

• FY2027 forecast: Revenue ¥18,000 million (+5.4%), operating profit ¥1,700 million (+6.1%), net income ¥1,350 million (+0.7%).

• Continued focus on high-value products, dynamic pricing, and cost control; assumes no major impact from Middle East geopolitical risks.

• Major capital investments planned for production capacity, R&D, and expansion into new business fields.