Pacific Metals (5541) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥4,463 million, down 43% year-over-year, reflecting a challenging sales environment and strategic volume reduction in ferronickel sales.

• Operating profit was ¥4,042 million, a 90.6% decrease year-over-year, with ordinary profit at ¥1,086 million and profit attributable to owners at ¥1,095 million.

• Operating loss narrowed to ¥4,042 million from ¥4,468 million year-over-year, aided by cost reductions despite inventory write-downs.

• Ordinary loss improved to ¥1,086 million from ¥2,316 million, supported by ¥2,867 million in share of profit from equity-method affiliates.

• The company is advancing new business initiatives in battery materials, beryllium, and renewable energy, aiming to diversify revenue streams.

Financial highlights

• Net sales decreased 43% year-over-year to ¥4,463 million.

• Operating profit was ¥4,042 million, ordinary profit ¥1,086 million, and profit attributable to owners ¥1,095 million.

• Basic earnings per share: ¥(59.91) vs. ¥(96.26) year-over-year.

• Production and sales volumes of nickel both declined, with production at 1,787 Ni t and sales at 1,890 Ni t.

• LME nickel price applicable to the company fell 13.6% year-over-year to $15,322/t.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2026, is ¥8,532 million, a 1.9% decrease from the previous forecast.

• Operating profit is forecast at ¥6,494 million, ordinary profit at ¥1,840 million, and profit attributable to owners at ¥1,880 million.

• Basic earnings per share forecast at ¥(108.12).

• Market and procurement conditions remain highly uncertain, with continued volume controls and high raw material costs expected.