Sumitomo Osaka Cement (5232) Q4 2026 earnings summary

Executive summary

• Net sales increased 1.9% year-over-year to ¥223.7bn, driven by growth in Cement and Advanced Materials segments.

• Operating profit rose 45.9% year-over-year to ¥13.6bn, supported by domestic cement price hikes and lower coal prices, despite weak domestic demand.

• Ordinary profit increased 53.8% year-over-year to ¥14.41bn, with profit attributable to owners up 24.5% to ¥11.21bn.

• Profitability improved despite impairment losses, with ROE up 1.1pp to 5.8% and ROIC up 1.0pp to 3.3% year-over-year, though both fell short of medium-term targets.

• Dividend per share maintained at ¥120; three-year average total return ratio reached 62%, exceeding plan.

Financial highlights

• Operating profit: ¥13.65bn (+45.9% YoY); Operating profit margin: 6.1% (+1.8pp YoY); Ordinary profit: ¥14.41bn (+53.8% YoY); Profit attributable to owners: ¥11.21bn (+24.5% YoY).

• Comprehensive income reached ¥13.24bn, up 122.8% year-over-year.

• Basic earnings per share increased to ¥349.58 from ¥270.37 year-over-year.

• Total assets grew to ¥361.98bn, and net assets to ¥197.95bn.

• Cash and cash equivalents at year-end were ¥16.59bn, up slightly from the prior year.

Outlook and guidance

• FY2026 net sales forecast at ¥234.5bn (+4.8% YoY); operating profit forecast at ¥15.0bn (+9.9% YoY); FY2027 ordinary profit forecast at ¥14.5bn (+0.7% YoY), profit attributable to owners ¥10.0bn (–10.8%).

• Cement business profit expected to decline due to higher energy costs; High-Performance Products/Advanced Materials profit to rise on electrostatic chuck sales.

• Domestic cement demand expected to decline due to labor shortages and higher construction costs.

• ROE forecast at 5.0% (–0.8pp YoY); ROIC at 3.5% (+0.2pp YoY).

• Dividend forecast unchanged at ¥120 per share, with a target total return ratio of 50%+ over the next medium-term plan.