MEC Company (4971) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FYE12/2026 reached ¥12,594 million, up 34.2% year-over-year, driven by strong demand in chemicals for advanced semiconductor package substrates, especially for generative AI applications.

• Operating income rose 69.4% year-over-year to ¥4,135 million, with net income up 60.5% to ¥3,039 million, reflecting higher sales and the absence of last year's one-time tax impact.

• Chemical sales reached ¥12,402 million, up 37.4% year-over-year, with shipments up 21.9%.

• Major product lines such as EXE and CZ saw significant sales increases, while SF declined.

• Overseas sales ratio was 66.0%, with a broader measure including indirect exports at 82.7%.

Financial highlights

• Gross profit rose to ¥8,004 million, with a gross profit margin of 63.6% compared to 61.8% a year earlier.

• EBITDA for 1H was ¥4,731 million, up 43.9% year-over-year.

• Ordinary income surged 72.6% to ¥4,305 million.

• EPS for the period was ¥166.43, up from ¥101.47 in the prior year.

• Comprehensive income reached ¥6,966 million, up 293.3% year-over-year, mainly due to valuation gains on available-for-sale securities.

• Foreign exchange contributed ¥777 million to sales and ¥472 million to operating income.

• Cash and cash equivalents at period-end increased by ¥2,081 million to ¥10,831 million.

Outlook and guidance

• Full-year FYE12/2026 net sales forecast revised to ¥25,800 million, up 23.2% year-over-year.

• Operating income projected at ¥8,300 million (up 44.4%), and net income at ¥6,000 million (up 19.3%).

• EPS forecast for the full year is ¥328.58.

• Annual dividend forecast raised to ¥110 per share.

• Demand for CZ series and chemical adhesion promoters expected to rise with semiconductor and PKG substrate market growth.