Tosoh (4042) Q4 2026 earnings summary

Executive summary

• Net sales declined to ¥1,019.9 billion for FY2026, down 4.1% year-over-year, mainly due to lower selling prices from decreased naphtha prices and weaker overseas market conditions.

• Operating income decreased by ¥3.4 billion to ¥95.5 billion, impacted by unfavorable inventory fluctuations and higher fixed costs.

• Ordinary income rose to ¥106.8 billion, up 3.6% year-over-year, supported by foreign exchange gains.

• Net income attributable to owners dropped 28.3% to ¥41.6 billion, mainly due to a significant impairment loss at a U.S. subsidiary.

• Advanced initiatives in growth and decarbonization, including capacity expansions and renewable energy projects.

Financial highlights

• Net sales: ¥1,019.9 billion (down ¥43.5 billion or 4.1% year-over-year).

• Operating income: ¥95.5 billion (down ¥3.4 billion or 3.4% year-over-year).

• Ordinary income: ¥106.8 billion (up ¥3.7 billion or 3.6% year-over-year).

• Net income attributable to owners: ¥41.6 billion (down ¥16.4 billion or 28.3% year-over-year).

• Gross profit increased slightly to ¥261.0 billion; operating margin was 9.4%.

Outlook and guidance

• No consolidated financial forecast for FY2027 due to uncertainties from Middle East instability, geopolitical risks, and volatile energy prices.

• Commitment to annual dividend of ¥100 per share and up to ¥50 billion in share buybacks over three years.