Tosoh (4042) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 declined to ¥499.1 billion, down 5.4% year-over-year, mainly due to lower selling prices from decreased naphtha prices, a stronger yen, and reduced shipments from extended maintenance at the Nanyo Complex.

• Operating income decreased 5.6% year-over-year to ¥44.7 billion, impacted by unfavorable inventory fluctuations and increased fixed costs, despite improved terms of trade and sales growth in the Engineering Group.

• Ordinary income rose 1.4% year-over-year to ¥45.7 billion, supported by improved foreign exchange gains.

• Income attributable to owners of parent dropped 70.4% year-over-year to ¥7.4 billion, primarily due to a ¥19.1 billion impairment loss at Tosoh SMD, Inc.

Financial highlights

• Gross profit for the period was ¥124.2 billion, down from ¥126.2 billion a year earlier.

• Basic earnings per share fell to ¥23.21 from ¥78.32 year-over-year.

• Comprehensive income decreased to ¥11.3 billion from ¥39.9 billion year-over-year.

• Cash and cash equivalents at period end were ¥133.1 billion, down ¥5.7 billion from the previous period.

• Non-operating income improved due to better foreign exchange gains/losses.

Outlook and guidance

• Full-year net sales forecast revised down to ¥1,020.0 billion (down 2.9% from previous forecast), with operating and ordinary income both forecast at ¥103.0 billion.

• Income attributable to owners of parent forecast at ¥38.0 billion, a 34.5% decrease year-over-year.

• Basic earnings per share forecast at ¥119.53.

• Annual dividend forecast maintained at ¥100 per share, with up to ¥25 billion in share buybacks planned.