Tokuyama (4043) Q1 2027 earnings summary

Executive summary

• Net sales increased year-over-year, driven by the consolidation of the TLS Group and growth in semiconductor-related product sales, despite a downturn in chemicals due to raw material shortages.

• Operating profit declined year-over-year, mainly due to higher raw material and fuel costs and lower chemical sales.

• Profit attributable to owners of parent rose slightly, supported by gains on sale of investment securities and improved extraordinary income.

Financial highlights

• Q1 FY2026 net sales: ¥85,654 million (+4.7% YoY); operating profit: ¥6,076 million (-22.9% YoY); profit attributable to owners of parent: ¥5,204 million (+6.0% YoY).

• Gross profit increased to ¥29,964 million from ¥27,975 million YoY.

• Comprehensive income surged 54.1% to ¥7,571 million.

• Basic EPS: ¥72.34 (up from ¥68.27 YoY).

• Total assets as of June 30, 2026: ¥577,945 million; shareholders’ equity: ¥287,000 million; net assets: ¥301,952 million.

Outlook and guidance

• FY2026 net sales forecast: ¥392,000 million (+12.2% YoY); operating profit forecast: ¥34,000 million (up 8.2% YoY); profit attributable to owners of parent: ¥26,000 million (+17.1% YoY).

• Annual dividend forecast: ¥132/share (interim ¥60, year-end ¥72), marking four consecutive years of increases.

• Assumptions: exchange rate 160 yen/USD, naphtha price 86,000 yen/kl for Q2–Q4.