Mitsui Chemicals (4183) Q2 2027 earnings summary

Executive summary

• H1 FY2026 revenue rose 20.3% YoY to ¥979.1bn; operating income before special items increased 123.4% to ¥99.3bn.

• Earnings benefited from price revisions, improved terms of trade, specialty demand, restructuring, FX and temporary inventory effects.

• FY2026 operating income before special items guidance was raised to ¥150.0bn; the outlook includes temporary inventory gains and a negative Middle East conflict impact.

• Agreements were signed for a ¥1.84tn JSR acquisition, adding semiconductor materials exposure and substantial funding needs.

Financial highlights

• H1 revenue was ¥979.1bn; operating income was ¥93.8bn, income before taxes ¥90.6bn and net income attributable to owners of the parent ¥58.8bn.

• Operating income before special items rose ¥54.8bn to ¥99.3bn; non-recurring items improved to a ¥5.5bn loss from a ¥16.6bn loss.

• FY2026 guidance: revenue ¥2,095bn, operating income before special items ¥150bn, operating income ¥112bn and parent-attributable net income ¥53bn.

• FY2026 forecast non-recurring items are a ¥38bn loss; forecast net income is ¥70bn and parent-attributable net income ¥53bn.

Outlook and guidance

• Revised guidance increased revenue by ¥195bn and operating income before special items by ¥45bn versus prior forecasts, mainly on improved terms of trade from price revisions.

• FY2026 assumptions: ¥157/US$ full-year exchange rate and ¥101,700/KL domestic naphtha; October–March assumptions are ¥155/US$ and ¥95,000/KL.

• FY2026 segment operating income before special items forecast: Life & Healthcare ¥34.5bn, Mobility ¥51bn, ICT ¥48bn and Basic & Green Materials ¥22.5bn.

• Specialty chemicals operating income before special items is forecast at ¥133.5bn, up 9% YoY; B&GM’s ¥22.5bn forecast includes ~¥4bn excluding temporary factors.

• FY2026 dividends are forecast at ¥75/share, including ¥37.5/share interim, unchanged from prior guidance.