Shin-Etsu Chemical (4063) Q1 2027 earnings summary

Executive summary

• Net sales rose 5.4% year-over-year to ¥662.4 billion, with operating income up 4.2% to ¥173.8 billion and net income attributable to owners of parent up 3.5% to ¥130.8 billion.

• Growth was driven by strong demand in electronics materials, especially semiconductor-related products for AI, while infrastructure materials faced headwinds from declining demand and price pressures in Asia.

• The company maintained a high equity ratio of 79.0% and increased net assets per share to ¥2,447.41.

Financial highlights

• Gross profit increased to ¥229.8 billion from ¥225.8 billion year-over-year.

• Operating income margin remained stable at 26.2% of net sales.

• ROIC (annualized) improved to 16.0% and ROE (annualized) to 11.6%.

• Cash dividends per share are forecast to rise to ¥116 for the year, up from ¥106.

• Capital expenditures for the quarter were ¥91.7 billion, with depreciation and amortization at ¥57.5 billion.

Outlook and guidance

• Full-year net sales are forecast at ¥2,700.0 billion (+4.9%), operating income at ¥700.0 billion (+10.2%), and net income attributable to owners of parent at ¥525.0 billion (+10.7%).

• Net income per share is projected at ¥286, with a dividend payout ratio of 40.6%.

• Management highlights ongoing uncertainty due to global economic conditions, market trends, and foreign exchange fluctuations.