Resonac (4004) Q2 2026 earnings summary

Executive summary

• Revenue and core operating profit reached record highs in 1H 2026, led by the Semiconductor and Electronic Materials segment and improved performance in Chemicals, with core operating profit up 2.6x year-on-year.

• Full-year FY2026 forecast was revised upward, with core operating profit now expected at ¥196 billion, a 40% increase over the initial forecast, reflecting strong demand and segment outperformance.

• The company plans a partial spin-off of Crasus Chemical in October 2026, which will be treated as a discontinued operation in forecasts.

Financial highlights

• 1H 2026 revenue was ¥676.9 billion, up 5.4% year-on-year and ¥16.9 billion above the May forecast.

• Core operating profit reached ¥88.8 billion, up 156.5% year-on-year.

• EBITDA margin improved to 19.8% in 1H 2026, up 7.1 points year-on-year.

• Profit attributable to owners of the parent was ¥48.5 billion, up 146.5% year-on-year.

• Free cash flow improved to ¥27.4 billion in 1H 2026 from negative ¥13.3 billion in 1H 2025.

Outlook and guidance

• FY2026 revenue forecast is ¥1,165 billion (up 11.3% year-on-year), with core operating profit expected at ¥196 billion (up 87.7%).

• EBITDA margin for the full year is expected at 24.4%, up 6.5 points from the initial forecast.

• EPS is projected at ¥606, above the ¥500 target; ROIC expected to reach 9.8%.

• The forecast excludes gains/losses from the Crasus Chemical spin-off and is based on current economic and market assumptions.