Sekisui Chemical (4204) Q1 2026 earnings summary

Executive summary

• Q1 net sales reached ¥305.1 billion (+2.1% YoY), and operating profit rose to ¥21.2 billion (+5.1% YoY), both record highs, while ordinary profit and profit attributable to owners declined due to FX losses and lower gains on investment securities.

• Group sales and profits grew, led by strong Housing segment performance, offsetting declines in other segments.

• Despite slumps in domestic housing, non-housing construction, and global auto markets, sales increased thanks to higher housing sales and renovation orders; one-time expenses in Europe and FX losses weighed on results.

• 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%).

• First half net sales forecast: ¥639.2 billion (+¥10.1 billion YoY); operating profit: ¥48.9 billion (+¥0.2 billion YoY), both record highs.

• Interim dividend planned to increase by ¥3 to ¥40 per share.

Outlook and guidance

• First-half net sales forecast revised down to ¥639.2 billion (−2.9% from previous forecast), but operating and ordinary profit guidance unchanged; full-year forecast remains at ¥1,364.5 billion net sales and ¥82.0 billion profit attributable to owners.

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

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

• First half operating profit expected to be on track despite net sales projected to fall short of plan.