Shin-Etsu Polymer (7970) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 2.7% year-over-year to ¥56,215 million, with operating profit up 2.7% to ¥7,110 million and profit attributable to owners of parent up 19.5% to ¥5,483 million.

• AI-related demand in the semiconductor sector grew, while other segments faced mixed conditions; automotive and input devices remained sluggish, but silicone molding products and semiconductor-related containers showed resilience.

• The company focused on boosting sales, streamlining operations, and expanding capacity in growth areas, particularly semiconductor-related containers.

• The global economy rebounded but faced headwinds from U.S. trade policy, with mixed trends across major regions and industries.

Financial highlights

• Net sales increased by ¥1,478 million year-over-year; operating profit rose by ¥187 million, and ordinary profit by ¥614 million.

• Ordinary profit increased 9.3% year-on-year to ¥7,247 million.

• Net income per share climbed 19.9% to ¥68.1; interim dividend per share increased 20% to ¥30.0.

• Comprehensive income dropped sharply to ¥2,277 million from ¥10,278 million due to a significant negative foreign currency translation adjustment.

• ROE improved to 8.9% and ROA to 9.6% for the period.

Outlook and guidance

• Full-year forecast for FY2026: net sales ¥113,500 million (+2.6% YoY), operating profit ¥13,900 million (+4.7%), ordinary profit ¥14,000 million (+5.9%), profit attributable to owners of parent ¥9,500 million (+0.7%), and EPS ¥118.10.

• Dividend forecast revised upward to ¥60.00 per share for FY2026.

• Electronic Devices and Housing & Living Materials segments expected to drive operating profit growth.