Q2 FY2026 Financial Results

Second-quarter results

Revenue rose ¥33.6 billion (+16.8%) to ¥233.8 billion, and operating profit rose ¥4.7 billion (+52.1%) to ¥13.7 billion. Segment income reached ¥16.7 billion (+73.6%), profit before tax ¥16.9 billion (+56.1%), and profit attributable to owners of parent ¥11.8 billion (+55.7%). The increase was driven by higher inventory valuation gains and price pass-through in the Materials Business, wider spreads and higher sales volumes in the Solutions Business, and an improvement in equity-method investment profit.

Full-year forecasts for FY2026

Full-year revenue is forecast at ¥475.0 billion (+18.8%), operating profit at ¥22.0 billion (+25.5%), segment income at ¥27.0 billion (+44.1%) and profit at ¥20.5 billion (+22.3%). Compared with the forecast announced on August 7, revenue is revised up by ¥20.0 billion and operating profit by ¥1.0 billion. The annual dividend forecast is ¥140 per share, an increase of ¥27 year on year, with a 100.4% payout ratio.

Business overviews and topics

In Materials, the company plans to optimize production in Japan and Indonesia and to build a new SAP plant in Indonesia with 50,000 tons per year of capacity, with commercial operations scheduled for July 2027. In Solutions, the Electronics strategy targets expansion into next-generation device and semiconductor materials, supported by the acquisition of GOO Chemical Co., Ltd. as a subsidiary. For IONEL electrolytes, capacity at the China joint venture will reach 12,400 tons per year by FY2027, and a new 3,000 ton per year plant is under construction in Kitakyushu.

Shareholder returns

The company maintains a shareholder return policy of paying the higher of a 100% dividend payout ratio or a 2.0% DOE for FY2024 to FY2027, with flexible share repurchases using proceeds from strategic shareholding reductions. A share repurchase of ¥6 billion is planned during FY2026, and the approximate target for FY2024 to FY2027 is ¥20 billion.