UBE (4208) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 15.0% YoY to ¥244,685m and operating profit increased 44.2% to ¥12,171m, supported by Urethane Systems, specialty product volumes and price revisions.

• Ordinary profit rose 27.2% to ¥20,480m, while profit attributable to owners of parent fell 5.7% to ¥10,453m as income taxes increased.

Financial highlights

• EBITDA was ¥27.2bn, up 27.5% YoY; net sales increased ¥32.0bn and operating profit increased ¥3.7bn.

• Share of profit from equity-method entities rose to ¥9.4bn from ¥7.9bn; ordinary profit also reflected a ¥1.4bn deterioration in foreign-exchange gains and losses.

• Free cash flow was ¥20.4bn versus negative ¥57.2bn a year earlier; period-end cash was ¥59.9bn.

• Comprehensive income was ¥11,817m versus ¥18,224m in the prior-year period.

Outlook and guidance

• FY2027 forecast stands at net sales ¥518.0bn, EBITDA ¥59.5bn, operating profit ¥26.5bn, ordinary profit ¥39.0bn and attributable profit ¥25.5bn; EPS forecast is ¥262.44.

• Forecast net sales and operating profit were raised by ¥33.0bn and ¥3.0bn versus May; the interim filing reported no revision to the forecast.

• Polymers & Chemicals pricing gains offset weaker Pharmaceutical and Machinery sales and higher Urethane Systems integration costs.