Kureha Corporation (4023) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 12.6% YoY to ¥87,101 million; core operating profit increased 43.5% to ¥10,841 million, supported by Advanced Materials and stronger PGA processed-product and fungicide sales.

• FY2027 full-year guidance was revised upward to ¥176,000 million revenue and ¥16,000 million core operating profit; profit attributable to owners of parent is forecast at ¥9,000 million.

Financial highlights

• H1 operating profit was ¥10,717 million (+32.2% YoY), profit before tax ¥10,555 million (+24.7%), and profit attributable to owners of parent ¥7,599 million (+20.3%).

• H1 EBITDA was ¥16.5bn versus ¥14.2bn YoY.

• FY2027 forecast revenue is ¥176,000 million (+8.9% YoY), core operating profit ¥16,000 million (+10.6%), and operating profit ¥13,500 million.

• Forecast profit attributable to owners of parent is ¥9,000 million versus a FY2026 loss of ¥10.7bn; EBITDA forecast is ¥25.5bn versus ¥30.2bn.

Outlook and guidance

• FY2027 guidance increased from the August 7 forecast: revenue to ¥176.0bn from ¥173.0bn and core operating profit to ¥16.0bn from ¥12.0bn.

• PGA is expected to return to annual profitability; PPS profit is forecast to rise, while PVDF profit is expected to decline YoY.

• FY2027 basic EPS is forecast at ¥235.43; annual dividend is ¥216 per share, based on a 5% consolidated DOE target.

• FY2028 targets include core operating profit of ¥19.0bn, EBITDA of ¥33.0bn, ROIC of 4.8%, ROE of 8.0%, and an equity ratio of ~50%.