Mitsubishi Gas Chemical Company (4182) Q4 2026 earnings summary

Executive summary

• FY2025 saw declines in net sales and operating profit due to lower market prices for polycarbonate (PC), methanol, and withdrawal from the ortho-xylene (OX) chain business, despite higher sales volumes in electronic materials.

• Significant impairment losses were recorded in multiple businesses, including plants in the Netherlands, Taiwan, and Trinidad and Tobago, resulting in a net loss attributable to owners of the parent.

• The business environment was challenging, with robust demand for advanced semiconductor materials but weak demand for basic chemicals and engineering plastics.

• FY2026 is forecasted to see a strong recovery, with increases in net sales, operating profit, and profit attributable to owners of the parent, driven by improved methanol prices, cost pass-throughs, and robust demand for electronic materials.

Financial highlights

• FY2025 net sales: ¥738.2bn (down ¥35.3bn YoY); operating profit: ¥45.2bn (down ¥5.5bn YoY); ordinary profit: ¥51.9bn (down ¥8.3bn YoY); net loss attributable to owners of parent: ¥40.3bn.

• EBITDA for FY2025: ¥92.8bn (margin 12.6%).

• Extraordinary losses in FY2025 totaled ¥82.7bn, mainly from impairment losses.

• FY2026 forecast: net sales ¥840.0bn (+¥101.7bn YoY), operating profit ¥59.0bn (+¥13.7bn YoY), ordinary profit ¥66.0bn (+¥14.0bn YoY), profit attributable to owners of parent ¥46.0bn.

• Annual dividend for FY2025: ¥100/share; FY2026 planned: ¥110/share.

Outlook and guidance

• FY2026 expects recovery in methanol prices, continued strong demand for electronic materials, and improved profitability due to absence of impairment losses.

• High fuel and raw material costs and supply chain disruptions are expected to persist, but cost increases will be passed through to selling prices.

• Assumed crude oil price for FY2026: $90/bbl; exchange rate: ¥155/USD.

• Demand for semiconductor-related products expected to remain robust, but risks from Middle East tensions and energy prices persist.

• Dividend forecast for FY2026 is ¥110 per share, up from ¥95 in FY2025.