AGC (5201) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose by ¥38.4 billion year-over-year to ¥538 billion, driven by yen depreciation, higher shipments in Essential Chemicals Southeast Asia, and pricing policies in architectural glass in Europe.

• Operating profit increased by ¥12.6 billion to ¥38.5 billion, supported by sales growth, improved profitability in Life Science, and lower natural gas prices in Europe.

• Profit before tax grew by ¥18 billion to ¥35 billion, aided by foreign exchange gains and cost reductions.

• Profit attributable to owners of the parent increased by ¥16.2 billion to ¥22.8 billion year-over-year, with EPS rising to ¥107.73.

• Comprehensive income for the period reached ¥35,005 million, reversing a loss in the prior year.

Financial highlights

• Total assets reached ¥2,995,531 million as of March 31, 2026, up ¥45.5 billion from year-end, with equity attributable to owners at ¥1,494,870 million.

• Operating cash flow was ¥42.6 billion; investment cash flow was negative ¥59.7 billion, resulting in free cash flow of negative ¥17.1 billion.

• Cash and cash equivalents increased by ¥25.2 billion from December 2025 to March 2026, reaching ¥119,848 million.

• CapEx for Q1 was ¥44.1 billion, down ¥5.5 billion quarter-on-quarter; depreciation was ¥48.1 billion, and R&D expenses were ¥13.9 billion.

• Basic earnings per share rose to ¥107.73 from ¥31.35 year-over-year.

Outlook and guidance

• Full-year FY2026 outlook unchanged: net sales ¥2,200 billion, operating profit ¥150 billion, profit before tax ¥124 billion, ROE 5.2%.

• Profit attributable to owners projected at ¥77,000 million, with basic EPS forecast at ¥363.12.

• Dividend forecast unchanged at ¥210 per share for FY2026.

• Minimal expected impact from Middle East developments; measures in place for raw material supply stability.

• Q2 is expected to see a dip in profit and net sales due to seasonality, especially in automotive and electronics.