Shin-Etsu Chemical (4063) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 11% YoY to ¥1,420.6bn; operating income increased 16% to ¥385.9bn and parent net income rose 11% to ¥286.9bn.

• July–September operating income grew 27% YoY and ordinary income 20%, with management citing strong AI-related demand and continued focus on growth and operating performance.

Financial highlights

• H1 gross profit was ¥510.9bn versus ¥455.7bn; operating income ¥385.9bn versus ¥333.9bn; ordinary income ¥415.1bn versus ¥367.3bn.

• Parent net income was ¥286.9bn versus ¥257.8bn; EPS was ¥155.71 versus ¥136.61.

• Comprehensive income was ¥407.1bn versus ¥78.8bn, including foreign-currency translation adjustments of ¥100.9bn versus a loss of ¥192.6bn.

• Operating cash flow was ¥347.1bn versus ¥410.8bn; investing cash outflow was ¥300.7bn versus ¥256.6bn.

Outlook and guidance

• FY2027 forecast unchanged: net sales ¥2,700bn (+5%), operating income ¥700bn (+10%), ordinary income ¥770bn (+9%) and parent net income ¥525bn (+11%).

• Forecast EPS is ¥286; operating margin 25.9% versus 24.7% in FY2026, and parent net income margin 19.4% versus 18.4%.

• Annual dividend forecast is ¥136/share, including a ¥20 anniversary dividend; interim ¥78 comprises ¥58 ordinary and ¥20 commemorative, with ¥58 expected at year-end.

• Forecast exchange rates from October 2026: ¥157/$ and ¥176/€; actual results remain exposed to economic conditions, market trends and currency movements.