Taiheiyo Cement (5233) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025 rose 1.1% year-over-year to ¥211.2B, but operating profit declined 8.9% to ¥10.1B and net profit attributable to owners fell 49.6% to ¥6.82B.

• Comprehensive income turned negative at ¥(12.35)B, mainly due to foreign currency translation losses.

• Domestic cement operating profit rose on price hikes and cost improvements, but overseas subsidiaries saw profit declines.

• The Japanese economy showed gradual recovery, but domestic cement demand was pressured by high construction costs and labor shortages.

• Net profit dropped year-over-year, reflecting the absence of prior year's extraordinary gains.

Financial highlights

• Net sales increased to ¥211.2B (+¥2.3B YoY); operating profit fell to ¥10.1B (−¥987M YoY).

• Ordinary profit decreased to ¥9.99B (−¥1.77B YoY); net profit attributable to owners dropped to ¥6.82B (−¥6.7B YoY).

• Basic EPS fell to ¥61.2 from ¥117.0 year-over-year.

• Operating profit to net sales ratio declined to 4.8% from 5.3% year-over-year.

• Total assets decreased to ¥1,413.97B from ¥1,423.70B at the previous fiscal year-end.

Outlook and guidance

• Fiscal 2026 forecast unchanged: net sales expected at ¥950B, operating profit at ¥85B, net profit at ¥60B, EPS ¥538.49.

• Dividend per share to increase to ¥100 for fiscal 2026, up ¥20 year-over-year.

• Domestic cement business projected to grow in sales and profit despite declining demand, driven by price hikes.

• Overseas profit expected to decrease, especially in the U.S., with recovery anticipated in the second half.

• Management cautions that actual results may differ due to economic and market factors.