Shin-Etsu Chemical (4063) Q3 2026 earnings summary

Executive summary

• Net sales for the first three quarters ended December 31, 2025, were ¥1,934.0 billion, up 0.2% year-over-year, with operating income at ¥498.0 billion, down 14.8% year-over-year, and net income attributable to owners at ¥384.3 billion, down 11.1% year-over-year.

• Operating, ordinary, and net income achieved about 80% of the full-year forecasts announced in July, despite a challenging global economic and geopolitical environment.

• The company maintained close customer communication, reliable supply, and agile sales, focusing on business growth and product development.

Financial highlights

• Gross profit for the period was ¥679.4 billion, down from ¥759.3 billion year-over-year.

• Operating income margin decreased to 25.8% from 30.3% year-over-year.

• ROIC (annualized) was 15.3%, down from 19.5% year-over-year; ROE (annualized) was 11.4%, down from 13.3%.

• Net assets per share as of December 31, 2025, were ¥2,304.

• Cash and deposits decreased to ¥1,485.9 billion, mainly due to share repurchases and dividend payments.

Outlook and guidance

• Full-year forecast for FY2025 (ending March 31, 2026): net sales ¥2,400.0 billion (down 6.3% year-over-year), operating income ¥635.0 billion (down 14.4%), net income attributable to owners ¥470.0 billion (down 12.0%), and annual dividend of ¥106 per share.

• No revision to the previously announced forecast.