Sekisui Jushi (4212) Q1 2027 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2026, rose 10.6% year-over-year to ¥18,301 million, with operating profit up 64.2% to ¥989 million and profit attributable to owners of parent up 292.2% to ¥1,029 million.

• Comprehensive income surged to ¥1,896 million from ¥73 million year-over-year, reflecting strong operational and non-operational gains.

• Net sales and profit rose in 1Q, driven by steady performance and front-loaded demand amid raw material procurement uncertainties.

• Upward revision to full-year profit forecast due to higher-than-expected gains from cross-shareholding reductions.

• Dividend forecast significantly increased, with annual dividend up 28 yen YoY to 100 yen.

Financial highlights

• 1Q net sales: ¥18,301 million (+10.6% YoY); gross profit: ¥5,737 million (+14.6% YoY).

• Operating profit: ¥989 million (+64.2% YoY); ordinary profit: ¥1,229 million (+61.5% YoY).

• Profit attributable to owners: ¥1,029 million (+292.2% YoY); EBITDA: ¥2,107 million (+38.2% YoY).

• Basic earnings per share increased to ¥34.37 from ¥8.49 year-over-year.

• Total assets as of June 30, 2026, were ¥141,359 million, with net assets at ¥101,888 million and an equity-to-asset ratio of 70.8%.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending March 31, 2027, is ¥84,000 million, up 7.5% year-over-year.

• Operating profit is projected at ¥6,300 million (up 10.8%), and profit attributable to owners of parent at ¥5,400 million (up 35.8%).

• Basic earnings per share forecast for the year is ¥180.08.

• Dividend forecast revised to ¥100 per share for the fiscal year ending March 31, 2027.

• Interim and year-end dividends raised, annual payout ratio projected at 62.5%.