Resonac (4004) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue rose 5.4% YoY to ¥676.9B; core operating profit increased 156.5% to ¥88.8B and attributable profit rose 146.5% to ¥48.5B.

• Semiconductor and Electronic Materials led results on strong AI-related advanced semiconductor demand; quarterly revenue and core operating profit reached records in April–June.

• FY2026 core operating profit guidance rose 40% to ¥196B, with a 24.4% EBITDA margin forecast.

Financial highlights

• H1 revenue of ¥676.9B exceeded the May forecast by ¥16.9B; core operating profit of ¥88.8B exceeded it by ¥14.8B.

• H1 EBITDA was ¥134.3B, with a 19.8% margin, up 7.1 points YoY; margin excluding Crasus Chemical was 23.4%.

• Operating profit was ¥73.3B, up 124.8% YoY; basic EPS was ¥267.15, compared with ¥108.71 in H1 2025.

• Free cash flow improved to ¥27.4B from negative ¥13.3B in H1 2025.

• Non-recurring items worsened ¥13.5B YoY, mainly due to a one-time retirement benefit plan revision.

Outlook and guidance

• FY2026 forecast: revenue ¥1,165B and core operating profit ¥196B; Crasus Chemical is treated as a discontinued operation retroactively from the start of the fiscal year.

• Attributable profit is forecast at ¥112.5B; basic EPS at ¥606.32 and adjusted EPS at ¥800.

• EBITDA margin is forecast at 24.4%, above the 20% target; ROIC is forecast at 9.8% against a 10% target.

• FY-end adjusted net debt ratio is forecast at 0.55x and net debt/EBITDA at 1.9x.

• Stronger AI-material demand drove upward revisions for Semiconductor and Electronic Materials, Mobility and Innovation Enabling Materials; Chemicals was revised downward.