Mitsubishi Gas Chemical Company (4182) Q3 2026 earnings summary

Executive summary

• Net sales for FY2025 3Q declined 5.8% year-over-year to ¥549.4 billion, mainly due to lower polycarbonate and methanol prices, withdrawal from the ortho-xylene chain business, and weak global demand, despite strong electronic materials sales.

• Operating profit fell 16.5% to ¥37.8 billion and ordinary profit dropped 10.6% to ¥48.1 billion, impacted by lower prices, higher fixed costs, and intensified competition.

• A net loss of ¥26.1 billion was posted, primarily due to impairment losses at overseas subsidiaries, including the Netherlands MXDA plant and China hydrogen peroxide plant.

• The business environment was affected by weak global demand, especially in China and Europe, volatile FX rates, and geopolitical risks.

Financial highlights

• FY2025 1-3Q net sales: ¥549.4 billion, down ¥33.7 billion (-5.8%) year-over-year.

• Operating profit: ¥37.8 billion, down ¥7.4 billion (-16.5%) year-over-year.

• Ordinary profit: ¥48.1 billion, down ¥5.6 billion (-10.6%) year-over-year.

• Profit attributable to owners: -¥26.1 billion, a decrease of ¥61.7 billion year-over-year.

• EPS: -¥134.34 (down from ¥178.18 year-over-year).

• Extraordinary losses totaled ¥60.9 billion, mainly from impairment losses.

• Gross profit decreased to ¥123.2 billion from ¥129.3 billion year-over-year.

• Comprehensive income was negative ¥4.1 billion, compared to ¥45.0 billion in the previous year.

• Total assets stood at ¥1,114.4 billion and net assets at ¥670.5 billion as of December 31, 2025.

Outlook and guidance

• Full-year FY2025 forecast: Net sales ¥730.0 billion, operating profit ¥47.0 billion, ordinary profit ¥55.0 billion, profit attributable to owners -¥18.0 billion.

• Operating and ordinary profit guidance revised upward, but a net loss is still expected.

• Annual dividend forecast raised to ¥100 per share.

• Assumed FX rates for remaining months: $1 = ¥155, €1 = ¥180; crude oil $65/bbl.

• Methanol price expected to rise in 4Q due to supply constraints.