Mitsubishi Gas Chemical Company (4182) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 20.8% YoY to ¥436,874m; operating profit rose 96.7% to ¥49,469m and ordinary profit rose 80.6% to ¥56,864m.

• Profit attributable to owners of parent was ¥35,450m versus a ¥27,939m loss a year earlier, reflecting stronger ordinary profit and the absence of prior-year impairment losses.

• FY2027 forecasts were raised to ¥900,000m net sales, ¥81,000m operating profit, ¥96,000m ordinary profit and ¥65,000m parent-attributable profit.

• First-half operating and ordinary profit reached record levels.

Financial highlights

• Gross profit increased to ¥106,807m from ¥80,813m; operating profit increased to ¥49,469m from ¥25,145m.

• Profit attributable to owners was ¥35,450m versus a ¥27,939m loss; EPS was ¥181.81 versus negative ¥143.48.

• Operating profit rose on quantity factors of ¥4.7bn, FX factors of ¥5.7bn and price factors, including inventory gains, of ¥16.4bn; other factors reduced profit by ¥2.5bn.

• Equity-method earnings increased 123.9% YoY to ¥6.6bn, supported by higher methanol prices and strong JSP Corporation results.

• Comprehensive income was ¥44,806m versus a ¥20,898m loss in the prior-year period.

Outlook and guidance

• FY2027 forecast: net sales ¥900,000m, operating profit ¥81,000m, ordinary profit ¥96,000m, parent-attributable profit ¥65,000m and basic EPS ¥333.32.

• Revised second-half forecast is ¥463.1bn net sales and ¥31.5bn operating profit; profit is expected to ease on maintenance, yen appreciation and non-recurrence of inventory gains.

• Second-half assumptions include ¥155/$, ¥175/€ and crude oil at $105/bbl; methanol is forecast at $500/MT versus $491/MT in H1.

• Annual dividend forecast remains ¥110/share, comprising ¥55 interim and ¥55 year-end, up from ¥100 in FY2026.