Mitsui Chemicals (4183) Q2 2026 earnings summary

Executive summary

• Specialty chemicals domains delivered firm sales, supporting H1 FY2025 operating income before special items of ¥44.5 billion, despite impairment losses and restructuring costs, with a full-year forecast of ¥110.0 billion.

• Net income attributable to owners was ¥7.8 billion in H1, impacted by non-recurring losses from business restructuring and impairment losses, with a full-year forecast of ¥55.0 billion.

• A two-for-one stock split is planned with a record date of December 31, 2025, effective January 1, 2026, to broaden the investor base.

• U.S. trade policies and production suspension at Omuta Works negatively impacted Mobility and Life & Healthcare Solutions, but effects were less severe than initially estimated and production is set to ramp up in 2H.

Financial highlights

• H1 FY2025 sales revenue was ¥813.6 billion, down 8.6–9% year-on-year; operating income before special items fell 15.8–16% to ¥44.5 billion.

• Net income attributable to owners dropped by 64.7–65% year-on-year to ¥7.8 billion, mainly due to restructuring and impairment losses.

• Free cash flow in H1 was ¥69.6 billion, supporting dividends and debt repayment.

• Net cash provided by operating activities increased to ¥127.2 billion, while net cash used in investing activities rose to ¥57.6 billion.

• Total assets at end-September 2025 were ¥2,100.2 billion, with interest-bearing liabilities at ¥750.5 billion.

Outlook and guidance

• FY2025 sales revenue is projected at ¥1,700.0 billion, revised down from ¥1,770.0 billion, mainly due to yen appreciation and lower raw material prices.

• Operating income before special items is forecast at ¥110.0 billion, up 9% year-on-year; net income at ¥55.0 billion, up 71% year-on-year.

• Annual dividend outlook is ¥150 per share pre-split; post-split, year-end dividend will be ¥37.5 per share.

• Segment revenue guidance: Life & Healthcare Solutions up to ¥270.0 billion, Mobility Solutions down to ¥530.0 billion, ICT Solutions down to ¥280.0 billion, Basic & Green Materials down to ¥605.0 billion.