Mitsubishi Gas Chemical Company (4182) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2025 declined to ¥361.6 billion, down 6.8% year-over-year, mainly due to yen appreciation, lower market prices for engineering plastics and methanol, and withdrawal from the ortho-xylene chain business.

• Operating profit dropped to ¥25.1 billion, a decrease of 25.5% year-over-year, impacted by lower market prices, increased fixed costs from capacity expansions, and weak demand for MXDA products.

• Loss attributable to owners of parent was ¥27.9 billion, compared to a profit of ¥24.7 billion in the prior year, mainly due to lower ordinary profit and a significant impairment loss from the suspended Netherlands MXDA plant.

• The business environment was marked by volatile foreign exchange, lower market prices for key products, and ongoing global economic uncertainty.

Financial highlights

• Ordinary profit for 1H was ¥31.4 billion, down 15.9% year-over-year.

• Gross profit fell to ¥80.8 billion from ¥89.4 billion year-over-year.

• EPS for 1H was negative, reflecting the impairment loss.

• Extraordinary losses totaled ¥51.0 billion, mainly from the MXDA plant impairment.

• Cash and cash equivalents at end of 1H were ¥49.8 billion, down from ¥61.9 billion at the end of the prior year period.

Outlook and guidance

• Full-year net sales forecast revised down to ¥730.0 billion, operating profit to ¥44.0 billion, and net loss attributable to owners of parent to ¥17.0 billion.

• Year-end dividend forecast remains at ¥50 per share, with annual dividend at ¥100 per share, unchanged from previous guidance.

• Operating profit expected to decrease in 2H due to reactionary decline in BT materials and higher fixed costs, despite some recovery in methanol prices.