LB Group (002601) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥14.42 billion, up 8.15% year-over-year, but net profit attributable to shareholders fell 39.08% to ¥843.83 million due to higher raw material costs, lower titanium product prices, and foreign exchange losses.

• Operating cash flow increased 21.73% year-over-year to ¥1.85 billion.

• The company maintained its global leadership in titanium dioxide and sponge titanium production capacity.

Financial highlights

• Gross margin for chemical products was 19.69%, down 4.58 percentage points year-over-year.

• EBITDA to total debt ratio was 11.22%, and interest coverage ratio was 5.58x.

• Total assets at period end were ¥61.62 billion, down 4.35% from year-end 2025.

• Net assets attributable to shareholders were ¥22.82 billion.

• Basic EPS was ¥0.3562, down 39% year-over-year.

Outlook and guidance

• The company will continue to expand global production, optimize product structure, and invest in R&D for high-end and green products.

• No interim dividend, bonus shares, or capital increase from reserves is planned for H1 2026.