Shin-Etsu Polymer (7970) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, rose 9.2% year-over-year to ¥27,977 million, with operating profit up 18.7% to ¥3,820 million and profit attributable to owners of parent up 37.3% to ¥3,109 million.

• The global economy showed solid growth, but the Japanese economy faced weaker consumer spending and increased downside risk due to U.S. trade policy.

• The company focused on expanding capacity in growth areas, especially semiconductor-related containers and fire prevention cushions for EV batteries.

Financial highlights

• Gross profit increased to ¥8,769 million from ¥8,240 million year-over-year.

• Ordinary profit rose 16.4% year-over-year to ¥3,985 million.

• Basic earnings per share for the quarter were ¥38.65, up from ¥28.05 a year earlier.

• Comprehensive income dropped sharply to ¥501 million from ¥4,890 million due to a significant negative foreign currency translation adjustment.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026: net sales ¥113,500 million (+2.6% YoY), operating profit ¥13,900 million (+4.7%), ordinary profit ¥14,000 million (+5.9%), profit attributable to owners of parent ¥9,500 million (+0.7%), EPS ¥118.10.

• Annual dividend forecast raised to ¥56 per share, up ¥4 from the previous year.