Mitsubishi Chemical Group (4188) Q4 2026 earnings summary

Executive summary

• Sales revenue declined 6.2% year-over-year to ¥3,704.0 billion, with core operating income down 1.7% to ¥225.0 billion and net income attributable to owners of the parent dropping 73.7% to ¥11.8 billion.

• Operating income fell sharply by 78.8% to ¥30.1 billion, and income before taxes plummeted 99.3% to ¥0.7 billion, reflecting significant one-time items and restructuring costs.

• Specialty Materials performed steadily, with core operating income rising 35% to ¥32.3 billion, while MMA and Materials & Polymers faced a sluggish environment and losses.

• Net income attributable to owners dropped 74% year-over-year, impacted by business withdrawals, special retirement expenses, and the transfer of Mitsubishi Tanabe Pharma, now classified as discontinued operations.

Financial highlights

• FY2025 sales revenue was ¥3,704.0B, down 6% year-over-year; core operating income was ¥225.0B, down 2%.

• Operating income fell 79% to ¥30.1B; net income from continuing operations was a loss of ¥16.4B.

• Free cash flow increased to ¥560.8B, up from ¥277.4B in the prior year, mainly due to proceeds from the MTPC sale.

• Total assets stood at ¥5,876.6B, down ¥18.0B from the prior year, while total equity rose ¥130.1B to ¥2,414.7B.

• Cash and cash equivalents at year-end rose to ¥527.1B, up ¥201.0B.

Outlook and guidance

• FY2026 core operating income forecast is ¥305.0B, up 36% year-over-year.

• Net income attributable to owners projected at ¥127.0B, a significant rebound from FY2025.

• Annual dividend forecast for FY2026 is ¥32 per share, unchanged from FY2025.

• Forecasts do not account for potential impacts from Middle East geopolitical risks; a prolonged crisis could reduce core operating income by ¥18.0B.