Mitsubishi Gas Chemical Company (4182) Q1 2026 earnings summary

Executive summary

• Sales and profits declined year-over-year in FY2025 1Q, mainly due to lower methanol and polycarbonate prices, weak demand, and yen appreciation, despite strong BT materials sales.

• Withdrawal from the ortho-xylene chain and deteriorating profitability in key products contributed to the decrease.

• The business environment was impacted by global economic uncertainty, U.S. tariff measures, volatile foreign exchange rates, and continued supply chain reorganization.

Financial highlights

• Net sales fell to ¥177.98bn (down 5.4% year-over-year).

• Operating profit dropped to ¥10.98bn (down 30.2%).

• Ordinary profit decreased to ¥13.83bn (down 23.0%).

• Profit attributable to owners of parent was ¥8.41bn (down 28.4%).

• EPS declined from ¥58.60 to ¥43.17.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥750bn, reflecting yen depreciation assumptions; profit forecasts unchanged.

• 1H forecast remains unchanged; 2H and full-year sales raised, but profit levels maintained.

• BT materials demand expected to stay firm, but PC and MXDA may face continued demand and profitability challenges.

• Dividend forecast for FY2026 is ¥100 per share, up from ¥95 in the previous year.

• FX assumptions for 2Q onward: $1 = ¥145, €1 = ¥165.