Mitsui Chemicals (4183) Q1 2026 earnings summary

Executive summary

• First quarter FY2025 results showed lower sales and profits, with apologies for a gas leak at Omuta Works and ongoing investigation; specialty chemicals sales remained firm, supporting operating income before special items, despite impairment losses from business restructuring and the phenols business in China.

• U.S. trade policies had limited direct impact in Q1, but indirect effects on demand and global economic uncertainty are being monitored.

• FY2025 dividend outlook maintained at JPY 75 per share interim and JPY 150 full year, with potential review if performance or external factors change.

Financial highlights

• First quarter FY2025 sales revenue was JPY 415.4 billion, down JPY 34.1 billion (7.6%) year-on-year, mainly due to lower selling prices from raw material price declines and exchange rate impacts.

• Operating income before special items was JPY 26.6 billion, down JPY 3.6 billion (12%) year-on-year.

• Net income attributable to owners was JPY 0.7 billion, a decrease of 96% year-on-year, mainly due to non-recurring losses and impairment in China.

• Non-recurring items totaled -JPY 13.8 billion, mainly from impairment losses and restructuring.

• Gross profit for the quarter was JPY 93.7 billion, down from JPY 99.8 billion year-on-year.

Outlook and guidance

• First-half FY2025 sales revenue expected at JPY 818.0 billion, down JPY 72.4 billion year-on-year.

• Operating income before special items forecast at JPY 49.0 billion, down JPY 3.8 billion year-on-year.

• Net income for the first half projected at JPY 7.5 billion, down JPY 14.7 billion year-on-year.

• Full-year outlook remains unchanged; forecasts assume JPY 145/USD exchange rate and naphtha at JPY 65,650/kl.