Sekisui Chemical (4204) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 achieved record net sales of ¥333.0 billion (+9.1% YoY), operating profit of ¥25.5 billion (+20.1% YoY), and ordinary profit of ¥28.1 billion (+39.1% YoY), driven by strong segment performance and foreign exchange gains.

• Profit attributable to owners of parent decreased 2.7% to ¥12.8 billion due to extraordinary losses from business restructuring.

• Comprehensive income was ¥16.7 billion, nearly flat year-over-year.

• No material impact from the Kumamoto earthquake; minor facility damage reported.

Financial highlights

• Gross profit margin improved to 32.7% (+0.3pp YoY), with gross profit at ¥109.0 billion.

• EBITDA for 1Q FY2026 was ¥40.1 billion (+¥4.8 billion YoY).

• Interim dividend of ¥40 per share confirmed.

• EPS for the quarter was ¥31.69.

Outlook and guidance

• 1H FY2026 forecast revised upward: net sales ¥690.5 billion (+9.6% YoY), operating profit ¥48.0 billion (+5.7% YoY), ordinary profit ¥49.3 billion, profit attributable to owners of parent ¥30.8 billion.

• Full-year forecast unchanged: net sales ¥1,408.4 billion, operating profit ¥114.0 billion, profit attributable to owners of parent ¥76.0 billion.

• Interim dividend forecast unchanged at ¥40 per share.

• Q2 expected to see demand adjustment and a pullback after Q1's inventory build-up.

• No anticipated material issues in raw material procurement despite Middle East conflict.