Taiheiyo Cement (5233) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026 rose slightly to ¥898.4 billion, with operating profit down to ¥74.6 billion due to overseas weakness and impairment losses in the Philippines, while domestic profit improved on price hikes and cost controls.

• Profit attributable to owners of parent dropped sharply to ¥25.4 billion, mainly due to extraordinary and impairment losses at the Philippine subsidiary.

• Comprehensive income decreased 52.1% year-over-year to ¥49,918 million.

Financial highlights

• Net sales increased by ¥2.1 billion year-over-year to ¥898,441 million; operating profit fell by ¥3.1 billion to ¥74,620 million.

• Ordinary profit was stable at ¥75.1 billion; profit attributable to owners of parent declined by ¥32.0 billion.

• Dividend per share increased by ¥20 to ¥100.

• ROE dropped to 3.8% from 9.5% year-over-year; capital adequacy ratio improved to 46.0%.

• Net debt/equity ratio improved slightly to 0.48; interest coverage ratio was 20.3x.

Outlook and guidance

• FY2027 forecasts higher net sales (¥1,027 billion), operating profit (¥76 billion), and profit attributable to owners of parent (¥48.0 billion).

• Basic earnings per share forecast at ¥430.10.

• Domestic cement sales volume expected to rise due to acquisition of Tokuyama’s business, but profit to fall on higher fixed costs.

• Overseas profit expected to recover, especially in the U.S. and Philippines, aided by acquisitions and cost initiatives.

• Dividend per share planned to increase to ¥120 in FY2027.