Iwatani (8088) H1 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, rose 2.3% year-over-year to 409.1 billion yen, driven by strong industrial field sales in the Materials segment and a gain on sale of non-current assets, despite lower LPG prices.

• Operating profit declined 33.3% year-over-year to 10.7 billion yen, mainly due to lower helium profitability and LPG price fluctuations.

• Profit attributable to owners of parent increased 51.1% year-over-year to 20.3 billion yen, reflecting improved equity gains and one-time adjustments.

• The company advanced hydrogen and carbon-free initiatives, including certified hydrogen supply projects and expanded bio-PP resin sales.

• Full-year financial forecasts and dividend guidance remain unchanged.

Financial highlights

• Net sales: 409.1 billion yen (+2.3% YoY); Operating profit: 10.7–10.8 billion yen (–33.3% YoY); Ordinary profit: 18.0 billion yen (–12.8% YoY); Profit attributable to owners of parent: 20.3 billion yen (+51.1% YoY).

• Gross profit was stable at 106.5 billion yen (–0.1% YoY).

• Operating profit excluding LPG import price impact was 13.8 billion yen (–19.3% YoY).

• Equity gains from affiliates, mainly Cosmo Energy HD, rose 146.3% YoY.

• Gain on sale of non-current assets contributed 11.7 billion yen to extraordinary income.

Outlook and guidance

• Full-year forecast for FY2026 remains unchanged: net sales 936.4 billion yen (+6.0% YoY), operating profit 49.1 billion yen (+6.2% YoY), ordinary profit 63.1 billion yen (+2.6% YoY), profit attributable to owners of parent 48.8 billion yen (+20.6% YoY), and EPS 212.05 yen.

• Annual dividend forecast at 47.0 yen per share, with a progressive dividend policy and payout ratio target of 20% or higher.