Tokuyama (4043) Q2 2027 earnings summary

Executive summary

• Q2 FY2026 net sales rose 9.1% YoY to ¥178,676 million, while operating profit fell 29.2% to ¥13,564 million; profit attributable to owners of parent fell 17.8% to ¥9,981 million.

• Sales growth reflected Life Science Group consolidation and higher semiconductor-related product sales; raw material, fuel and logistics costs weighed on profitability.

• Domestic cement and solidification-material sales business transferred to TAIHEIYO CEMENT CORPORATION on Oct. 1, 2026; FY2026 forecasts were ¥392,000 million in sales and ¥34,000 million in operating profit.

Financial highlights

• Gross profit was ¥60,739 million versus ¥59,377 million; SG&A rose to ¥47,174 million from ¥40,225 million.

• Ordinary profit fell 28.5% YoY to ¥13,546 million, and profit before income taxes fell 16.8% to ¥14,823 million.

• Extraordinary income improved ¥2,407 million YoY, including a ¥1,361 million gain on sale of investment securities.

• Basic EPS was ¥139.26 versus ¥168.81; comprehensive income fell 10.6% to ¥12,441 million.

Outlook and guidance

• FY2026 forecasts: net sales ¥392,000 million, operating and ordinary profit ¥34,000 million each, profit attributable to owners of parent ¥46,500 million, and EPS ¥648.80.

• FY2026 dividend forecast was ¥140 per share, comprising ¥60 interim and ¥80 year-end; FY2025 annual dividend was ¥120 per share.

• FY2030 targets include sales of ¥407.5 billion, operating profit of ¥57.0 billion, 14.0% operating margin, EPS of ¥551, ROE of 10.6%, ROIC of 9.1%, and DOE of 4.0%.

• Q3–Q4 assumptions were ¥160/USD and ¥92,000/kl domestic naphtha; FY2026 segment forecasts included Cement sales of ¥60.0 billion and Life Science sales of ¥67.0 billion.