Sumitomo Bakelite (4203) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥192,041 million, up 22.7% YoY; business profit was ¥28,084 million, up 64.1%, and parent-attributable profit was ¥19,561 million, up 47.2%.

• FY2027 guidance rose to revenue of ¥400,000 million, business profit of ¥55,000 million, operating profit of ¥50,000 million and parent profit of ¥35,000 million.

• The ¥55,000 million business-profit forecast reaches the stated 2030 target four years ahead of schedule.

• Growth reflected stronger semiconductor demand, selling-price optimization and yen depreciation; profitability improved despite higher raw-material prices.

Financial highlights

• H1 gross profit was ¥64,556 million versus ¥48,896 million a year earlier; operating profit was ¥25,985 million versus ¥16,462 million.

• Profit before tax was ¥27,649 million versus ¥18,109 million; basic and diluted EPS were both ¥222.94, compared with ¥151.65.

• Revenue growth drivers were volume +¥12,900 million, selling prices +¥11,400 million and FX +¥11,200 million; business-profit bridge included price/cost +¥7,600 million and fixed costs -¥3,600 million.

Outlook and guidance

• Versus prior guidance, FY2027 forecasts increased by ¥63,000 million for revenue, ¥17,000 million for business profit, ¥12,500 million for operating profit and ¥6,500 million for parent profit.

• Segment FY2027 revenue guidance: semiconductor-related materials ¥155,000 million, high-performance plastics ¥129,000 million and quality of life ¥115,000 million.

• FY2027 basic EPS forecast is ¥398.89; the interim dividend was ¥70 per share and the full-year dividend forecast is ¥140 per share.