Sumitomo Osaka Cement (5232) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥51.5 billion, down 3.2% year-over-year, while profit attributable to owners of the parent rose 115.8% to ¥1.48 billion, driven by improved profitability in advanced materials and cost controls.

• The Cement business saw improved profits due to lower coal prices and price hikes, despite lower domestic sales volume and higher manufacturing fixed costs.

• The Japanese economy showed moderate recovery, but cement demand declined due to labor shortages and workstyle reforms, while exports increased 7.3% year-over-year.

• The group continued its medium-term management plan, focusing on profitability improvements, growth in electronic materials, and overseas expansion.

Financial highlights

• Operating profit increased 37.7% year-over-year to ¥1.74 billion, despite a 3.2% drop in net sales.

• Ordinary profit slightly decreased to ¥1.92 billion from ¥1.98 billion year-over-year.

• Profit attributable to owners of the parent increased to ¥1.48 billion from ¥0.79 billion year-over-year.

• Extraordinary income rose due to gains on sale of cross-shareholdings.

• Basic earnings per share more than doubled to ¥45.14 from ¥20.17 year-over-year.

Outlook and guidance

• Full-year FY2025 forecasts remain unchanged: net sales ¥235 billion, operating profit ¥19 billion, ordinary profit ¥17.6 billion, profit attributable to owners ¥14 billion.

• Full-year profit attributable to owners of the parent is projected to rise 55.4%.

• Cement business to continue cost-cutting, price increases, and coal procurement measures.

• Dividend forecast at ¥120 per share for the full year.

• No changes were made to the previously announced performance forecast.