Zeon (4205) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 consolidated net sales reached ¥109.5B (+6% YoY), operating income ¥16.3B (+34% YoY), ordinary income ¥18.8B (+57% YoY), and net income ¥12.7B (+69% YoY).

• Comprehensive income surged 399% YoY to ¥25.3B, reflecting strong operational and financial performance.

• Growth was driven by strong shipments in specialty materials, especially battery materials and COP, and improved profitability in both specialty and elastomer segments.

Financial highlights

• Net sales increased by ¥6.4B YoY and ¥7.2B QoQ; operating income rose by ¥4.2B YoY and ¥7.5B QoQ.

• Gross profit increased to ¥37.2B from ¥33.5B YoY; ordinary profit jumped 57.4% YoY to ¥18.8B.

• Basic earnings per share increased to ¥66.43 from ¥38.06 YoY.

• Total assets grew to ¥603.3B as of June 30, 2026, up from ¥548.2B at the previous fiscal year-end.

• Non-operating income included dividend income and exchange gains; extraordinary items had minimal impact.

Outlook and guidance

• FY2026 full-year forecast: net sales ¥405.0B, operating income ¥38.0B (+5% YoY), ordinary income ¥37.0B (-8% YoY), net income ¥36.0B (-1% YoY).

• Outlook remains cautious due to geopolitical risks (Strait of Hormuz, Bab el-Mandeb), raw material volatility, and economic uncertainty.

• Dividend forecast maintained at ¥79/share (+¥3 YoY), with a DOE target of at least 4%.