Sumitomo Chemical Company (4005) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 core operating income surged to ¥27.7 billion from ¥5.7 billion year-over-year, driven by improved profitability in Sumitomo Pharma, Petro Rabigh, and robust shipments in Agro, Life Solutions, ICT, and Mobility Solutions.

• Sales revenue declined 14% year-over-year to ¥526.1 billion, with net income attributable to owners at a loss of ¥4.5 billion, mainly due to foreign exchange losses.

• Total comprehensive income dropped to ¥1.1 billion from ¥69.9 billion year-over-year.

• Profitability improved in key segments, continuing a recovery trend after significant losses in FY2023.

Financial highlights

• Sales revenue was ¥526.1 billion, down ¥86 billion year-over-year, with notable declines in Essential & Green Materials and ICT & Mobility Solutions.

• Core operating income was ¥27.7 billion, up ¥22 billion year-over-year.

• Operating income rose to ¥25.5 billion from ¥11.5 billion year-over-year.

• Net income attributable to owners was a loss of ¥4.5 billion, compared to a profit of ¥24.4 billion in Q1 FY2024, mainly due to foreign exchange losses.

• Free cash flow was negative at ¥-21.9 billion, compared to ¥70.2 billion in Q1 FY2024.

Outlook and guidance

• First half FY2025 sales revenue forecast is ¥1,100.0 billion (down ¥141.4 billion YoY), core operating income ¥90.0 billion (up ¥60.5 billion YoY), net income ¥25.0 billion (up ¥31.5 billion YoY).

• Full-year FY2025 sales revenue guidance is ¥2,340.0 billion, with core operating income of ¥150.0 billion.

• Net income attributable to owners of the parent is projected at ¥40.0 billion for FY2025, with basic EPS of ¥24.44.

• Interim dividend forecast is ¥6.00 per share, with annual dividend expected at ¥12.00 per share.

• The company expects to record a gain of approximately ¥45.0 billion in Q2 FY2025 from the sale of a subsidiary's Asian business.