UBE (4208) Q1 2026 earnings summary

Executive summary

• Net sales decreased 12.9% year-over-year to ¥100.5B, mainly due to sluggish sales and business transfers.

• Operating profit rose 1.5% to ¥3.0B, supported by improved performance in Polymers & Chemicals and Machinery.

• Profit attributable to owners fell 9.2% to ¥4.4B, and EPS dropped to ¥44.90.

• Ordinary profit declined 10.8% to ¥6.2B, impacted by foreign exchange losses and higher interest expenses.

• Segment reclassification expanded reporting from four to six business units.

Financial highlights

• EBITDA declined 8.1% year-over-year to ¥8.9B.

• Free cash flow was negative at ¥-56.1B, mainly due to a ¥71.5B outflow for subsidiary acquisitions.

• Interest-bearing debt increased to ¥316.7B, up from ¥231.1B a year ago.

• Shareholders' equity ratio at 46.4%.

• Net cash provided by operating activities was ¥1.7B; investing activities used ¥77.0B, mainly for acquisitions.

Outlook and guidance

• Full-year net sales forecast at ¥490.0B, with operating profit guidance of ¥25.0B and profit attributable to owners of ¥27.5B.

• 1Q progress: 20.5% for net sales, 11.8% for operating profit.

• Dividend forecast maintained at ¥110 per share for the year; DOE policy at 2.5% or higher.

• No change to previously announced earnings guidance.