Sumitomo Seika Chemicals (4008) Q4 2026 earnings summary

Executive summary

• Net sales for FY2025 were ¥148.4 billion, up 0.5% year-over-year, with operating profit rising 35% to ¥14.5 billion and ordinary profit up 37.3% to ¥15.2 billion.

• Profit attributable to owners increased 28.8% to ¥7.7 billion, despite extraordinary losses related to product mischarging and impairment in the Functional Materials segment.

• Comprehensive income surged to ¥12,910 million from ¥2,880 million year-over-year.

• Growth was driven by increased sales volumes in Super Absorbent Polymers (SAP) and Water-Soluble Polymers, and lower raw material and fuel costs.

Financial highlights

• Net sales: ¥148.4 billion (+0.5% YoY); Operating profit: ¥14.5 billion (+35% YoY); Ordinary profit: ¥15.2 billion (+37.3% YoY).

• Profit attributable to owners: ¥7.7 billion (+28.8% YoY).

• ROE improved to 7.8% (+1.5pt YoY); ROIC rose to 8.1% (+1.1pt YoY); basic EPS ¥117.48.

• Gross profit increased to ¥35,435 million from ¥30,681 million year-over-year.

• Equity-to-asset ratio rose to 67.8%, and net assets per share reached ¥1,601.96.

Outlook and guidance

• FY2026 financial forecast not finalized due to supply chain risks and uncertainty from Middle East tensions and the Strait of Hormuz blockade.

• Most raw materials for Q1 secured; efforts ongoing to pass cost increases to customers.

• SAP sales volume expected to rise ~4% in FY2026, driven by new Singapore facility.