Sekisui Chemical (4204) Q1 2026 earnings summary

Executive summary

• Q1 net sales rose to ¥305.1 billion (+2.1% YoY), with operating profit up to ¥21.2 billion (+5.1% YoY), both record highs, led by strong Housing segment performance, despite declines in ordinary profit and profit attributable to owners due to FX losses and lower investment gains.

• Housing segment achieved record Q1 sales and operating profit, offsetting declines in other segments.

• Net income declined due to lower gains from cross-shareholding sales and negative FX impacts.

• 1H FY2025 forecasts project record high net sales and operating profit, with interim dividend per share expected to rise to ¥40.

Financial highlights

• Net sales: ¥305.1 billion (+2.1% YoY); operating profit: ¥21.2 billion (+5.1% YoY); ordinary profit: ¥20.2 billion (−23.9% YoY); profit attributable to owners: ¥13.1 billion (−44.5% YoY).

• Gross profit margin improved to 32.4% (+0.2% YoY); EBITDA for Q1 was ¥35.3 billion (+¥2.0 billion YoY).

• EPS: ¥31.61 (down from ¥56.47 YoY); comprehensive income: ¥16.7 billion (−49.0%).

• Free cash flow for Q1 was −¥24.1 billion, down from −¥17.7 billion YoY; capital expenditures were ¥19.1 billion (+¥5.5 billion YoY).

• Net sales for the first half are projected at ¥639.2 billion (+¥10.1 billion YoY); operating profit forecast at ¥48.9 billion (+¥0.2 billion YoY); ordinary profit for the first half expected to rise by ¥1.6 billion to ¥49.7 billion.

Outlook and guidance

• First-half net sales forecast at ¥639.2 billion (−2.9% from previous forecast), operating profit at ¥48.9 billion (+¥0.2 billion YoY), both projected to be record highs; profit attributable to owners expected to decline to ¥35.1 billion (−¥7.8 billion YoY) due to lower cross-shareholding gains.

• Interim dividend per share forecast at ¥40, up ¥3 YoY.

• Q2 FX assumption set at ¥145/USD; direct impact of US tariff measures expected to be minimal.

• Q2 auto production and smartphone shipments expected slightly below previous outlook.

• Full-year forecast remains at ¥1,364.5 billion net sales and ¥82.0 billion profit attributable to owners; full-year EPS forecast: ¥198.25; dividend forecast: ¥80 per share.