Mitsui Chemicals (4183) Q2 2025 earnings summary

Executive summary

• Operating income before special items for H1 FY2024 rose 26% year-over-year to JPY 52.8 billion, driven by strong specialty chemicals and improved terms of trade, despite the Osaka ethylene plant failure.

• Net income attributable to owners increased by JPY 1.5 billion year-over-year to JPY 22.2 billion, with basic EPS at JPY 116.90.

• Sales revenue for H1 FY2024 was JPY 890.4 billion, up 8.1% year-over-year, supported by higher selling prices and favorable exchange rates.

• Specialty chemicals saw an 11% increase in operating income before special items, aided by firm sales volumes and FX.

• Economic recovery continued globally, but some regions saw slower demand due to tight monetary policy.

Financial highlights

• H1 FY2024 operating income before special items: JPY 52.8 billion (+26% YoY); net income: JPY 22.2 billion (+8% YoY); sales revenue: JPY 890.4 billion (+8% YoY).

• Operating income reached JPY 46.0 billion, a 47% increase from the prior year.

• Free cash flow for H1 FY2024 improved to JPY 69.7 billion, up JPY 19.4 billion YoY.

• Total assets at end of H1 FY2024: JPY 2,103.3 billion, down JPY 100 billion from March 2024.

• Dividend outlook for FY2024: JPY 150 per share, up JPY 10 YoY.

Outlook and guidance

• FY2024 sales revenue forecast revised down to JPY 1,770.0 billion; operating income before special items to JPY 105.0 billion (+9% YoY); net income forecast at JPY 56.0 billion.

• Downward revision reflects delayed ethylene plant restart and expected lower naphtha prices.

• Cash flows from operating activities projected at JPY 190.0 billion; free cash flow at JPY 15.0 billion.

• Exchange rate assumption for FY2024 is JPY 149/USD; domestic naphtha price expected at JPY 75,500/kL.