Shin-Etsu Chemical (4063) Q1 2026 earnings summary

Executive summary

• Net sales rose 5% year-over-year to ¥628.5 billion, but operating income fell 13% to ¥166.8 billion and net income attributable to owners of parent declined 12% to ¥126.4 billion.

• Ordinary income and net income exceeded internal forecasts by 3% and 5%, respectively, despite challenging market conditions and global economic uncertainty.

• The company maintained strong customer relationships and continued capital investments for long-term growth.

Financial highlights

• Gross profit decreased to ¥225.8 billion from ¥242.6 billion year-over-year, with gross margin compression due to higher cost of sales.

• Net assets dropped to ¥4,314.2 billion from ¥4,837.6 billion at the previous fiscal year-end, mainly due to share repurchases and dividend payments.

• Cash and time deposits decreased by ¥247.5 billion, and interest-bearing liabilities increased to ¥244.7 billion.

• Net income per share was ¥66.48, down from ¥72.21 year-over-year.

Outlook and guidance

• Full-year forecast for FY2025: net sales ¥2,400 billion (down 6%), operating income ¥635 billion (down 14%), net income attributable to owners of parent ¥470 billion (down 12%).

• Annual dividend forecast maintained at ¥106 per share.

• Management notes significant uncertainty due to global tariff policies and foreign exchange volatility.