Sekisui Chemical (4204) Q2 2027 earnings summary

Executive summary

• H1 FY2026 net sales reached a record ¥701.706bn, up 11.4% YoY; operating profit of ¥60.439bn and ordinary profit of ¥61.418bn also set first-half records.

• Higher selling prices, high-value products, volume and mix gains supported profit growth despite higher raw-material and parts costs; net profit rose 9.7% to ¥34.791bn despite extraordinary losses.

• FY2026 operating-profit guidance rose ¥8bn from April to ¥123bn; full-year net sales are forecast at ¥1,491bn.

Financial highlights

• H1 net sales increased ¥71.9bn YoY; gross profit rose ¥25.1bn to ¥228.1bn, and gross margin improved 0.3 percentage points to 32.5%.

• H1 operating profit was ¥60.439bn, up 33.0%; ordinary profit was ¥61.418bn, up 25.5%; profit attributable to owners of parent was ¥34.791bn, up 9.7%.

• FY2026 forecasts: net sales ¥1,491bn, operating profit ¥123bn, ordinary profit ¥122bn and profit attributable to owners of parent ¥76bn.

• H1 consolidated sales and profits exceeded the July forecast, with sales and operating profit increasing across all segments.

Outlook and guidance

• H2 plan forecasts net sales of ¥789.3bn and operating profit of ¥62.6bn; versus April, sales are ¥57.7bn higher and operating profit ¥6.0bn lower.

• H2 operating profit is forecast to rise ¥1.5bn YoY, led by High Performance Plastics, despite a reversal of front-loaded demand and fewer housing units sold.

• Full-year EBITDA is forecast at ¥185.7bn; FY2026 capex is ¥110bn, R&D expenditure ¥48bn and ROE 9.0%.

• Progress toward the FY2028 operating-profit target of ¥150bn remains on track; EBITDA is expected to reach a record.