Mitsui Chemicals (4183) Q4 2026 earnings summary

Executive summary

• Operating income before special items for FY 2025 was JPY 100.0 billion, down JPY 1.0 billion year-on-year, mainly due to Basic & Green Materials underperformance despite growth in specialty chemicals and ICT Solutions.

• Net income attributable to owners was JPY 34.4 billion, up 6.6% year-on-year, with basic EPS at JPY 91.62 after a two-for-one stock split.

• FY 2026 outlook projects operating income before special items at JPY 105.0 billion, up 5.0 billion, and net income at JPY 45.0 billion, up 30.9%.

• Comprehensive income surged to JPY 79.7 billion, driven by significant gains in other comprehensive income.

Financial highlights

• FY 2025 sales revenue was JPY 1,668.8 billion, down 8% year-on-year, mainly due to lower naphtha prices and business withdrawals.

• Specialty chemicals domains operating income before special items rose to JPY 122.1 billion, up 5% year-on-year, driven by ICT Solutions.

• Basic & Green Materials posted an operating loss before special items of JPY 18.4 billion, worsened by low operating rates, inventory losses, and maintenance.

• Non-recurring items totaled -JPY 26.2 billion, including impairment losses and restructuring costs.

• Free cash flow was JPY 78.2 billion, with operating cash flow at JPY 213.0 billion and investing cash flow at -JPY 134.8 billion.

Outlook and guidance

• FY 2026 sales revenue expected at JPY 1,900.0 billion, up 13.9%, driven by yen depreciation and higher raw material prices.

• Operating income before special items forecast at JPY 105.0 billion, net income at JPY 45.0 billion.

• Specialty chemicals domains operating income before special items projected at JPY 130.0 billion, up 6%.

• Basic & Green Materials operating loss before special items expected to improve to JPY 3.0 billion.

• Dividend outlook maintained at JPY 75 per share, with a two-for-one stock split effective January 1, 2026.