Tokai Carbon (5301) investor relations material

Executive summary

• Net sales for Q2 FY2026 rose 9.9% year-over-year to ¥173.7 billion, driven by the consolidation of Bridgestone's CB subsidiary in Thailand and strong SiC product sales for memory semiconductors.

• Operating profit increased 10.5% year-over-year to ¥15.1 billion, with notable contributions from license revenue and restructuring benefits.

• Net income attributable to owners fell 14.0% year-over-year to ¥7.2 billion, impacted by finalized accounting for prior business combinations.

• Comprehensive income surged to ¥22,424 million from a loss of ¥10,453 million in the prior year period.

• Strategic initiatives included an upward revision of full-year earnings guidance, increased dividends, treasury stock purchases, and sustainability-focused investments.

Financial highlights

• Net sales: ¥173.7 billion (+9.9% YoY); Operating income: ¥15.1 billion (+10.5% YoY); Ordinary income: ¥14.8 billion (+9.3% YoY); Net income attributable to owners: ¥7.2 billion (-14.0% YoY).

• EBITDA: ¥33.3 billion (+16.1% YoY); EBITDA margin: 19.2% (+1.0pt YoY).

• Gross profit increased to ¥43,200 million from ¥39,185 million year-over-year.

• EPS for the period was ¥34.40, down from ¥39.42 in the prior year.

• Total assets grew to ¥683,300 million as of June 30, 2026, up from ¥664,033 million at year-end 2025.

Outlook and guidance

• Full-year FY2026 forecasts revised upward: net sales expected at ¥386.0 billion (+19.5% YoY), operating income at ¥35.0 billion (+35.4% YoY), and net income at ¥22.0 billion (+9.6% YoY), reflecting strong semiconductor and graphite electrode markets.

• EBITDA for FY2026 forecasted at ¥72.4 billion (+23.9% YoY), with margin at 18.8%.

• Dividend forecast increased to ¥40 per share for 2026.