Tosoh (4042) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months of FY2026 were ¥756.1 billion, down 5.0% year-over-year, mainly due to lower selling prices and decreased shipments from extended maintenance and weak demand.

• Operating income declined by ¥4.7 billion to ¥69.9 billion, impacted by unfavorable inventory fluctuations and increased fixed costs, despite improved terms of trade and sales growth in the Engineering Group.

• Income attributable to owners of parent dropped sharply by ¥23.9 billion or 49.2% year-over-year to ¥24.6 billion, primarily due to a significant impairment loss at a U.S. subsidiary.

Financial highlights

• Net sales: ¥756.1 billion (down 5.0% or ¥39.6 billion year-over-year).

• Operating income: ¥69.9 billion (down ¥4.7 billion or 6.3% year-over-year).

• Ordinary income: ¥77.0 billion (down ¥5.6 billion or 6.7% year-over-year).

• Basic earnings per share decreased to ¥77.94 from ¥152.37 year-over-year.

• Capital expenditures: ¥58.9 billion; R&D expenses: ¥16.7 billion.

Outlook and guidance

• FY2026 full-year net sales forecast revised down to ¥1,010.0 billion (down 5.0% or ¥53.4 billion from FY2025), with operating income expected at ¥90.0 billion (down 9.0%) and income attributable to owners of parent at ¥30.0 billion (down 48.3%).

• Basic earnings per share for the full year forecasted at ¥94.93.

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