MCG Group H1 FY2027 Consolidated Results

Performance overview

During the interim consolidated period (April 1, 2026–September 30, 2026) MCG Group reported sales revenue of ¥2,037.1 billion, up ¥238.0 billion (13.2%). Core operating income rose ¥76.7 billion (60.9%) to ¥202.8 billion, operating income increased ¥113.2 billion (130.9%) to ¥199.7 billion, and income before taxes climbed ¥113.7 billion (165.4%) to ¥182.4 billion. Net income attributable to owners of the parent declined ¥19.9 billion (18.1%) to ¥90.2 billion. The company noted a macro backdrop of inflationary pressure and Middle East-related disruption alongside robust US AI-driven demand and recovering domestic consumption.

Segment highlights

Specialty Materials: sales ¥653.5 billion and core operating income ¥70.4 billion, supported by barrier and MLCC films, carbon-fiber composite parts for robotaxi applications, semiconductor-related products and improved pricing. MMA & Derivatives: sales ¥200.2 billion and core operating income ¥9.0 billion; volumes were down due to Middle East impacts but higher monomer prices and FX lifted revenue. Basic Materials: sales ¥388.3 billion and core operating income ¥14.1 billion, driven by higher selling prices, cokes-linked Carbon Products and inventory valuation gains. Industrial Gases: sales ¥733.2 billion and core operating income ¥107.7 billion, aided by regional price management, acquisitions in Australia/New Zealand and favorable FX. Others: sales and core income both declined to ¥61.9 billion and ¥4.7 billion respectively.

Financial position

Total assets at period end were ¥5,802.1 billion, down ¥74.5 billion from the prior fiscal year-end, mainly due to a decline in cash and cash equivalents from debt repayments and yen appreciation, partly offset by higher inventories from rising raw material prices.

Revision to full-year forecast

The company raised its FY ending March 31, 2027 forecasts to sales ¥4,060.0 billion (previously ¥3,800.0bn), core operating income ¥340.0 billion (previously ¥305.0bn), operating income ¥328.0 billion (previously ¥300.0bn), income before taxes ¥296.0 billion (previously ¥270.0bn), net income ¥222.0 billion (previously ¥200.0bn), net income attributable ¥145.0 billion (previously ¥127.0bn) and basic EPS ¥106.72 (previously ¥93.48). The company expects core operating income to be 11.5% above its May 2026 forecast, citing stronger semiconductor-related performance and inventory valuation gains in Basic Materials, while MMA & Derivatives may underperform due to Middle East supply uncertainty; forward-looking statements remain subject to risks and uncertainties.