AGC (5201) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 reached ¥1,100.6 billion, up ¥105.1 billion year-over-year, driven by favorable foreign exchange, higher shipments in Essential and Integrated Chemicals, and improved Life Science profitability.

• Operating profit rose by ¥10.6 billion to ¥64.7 billion, with improvements in Life Science profitability and non-recurrence of prior impairment losses in Biopharmaceuticals CDMO.

• Profit attributable to owners of the parent increased 155.4% year-over-year to ¥35.5 billion.

• Full-year outlook remains unchanged, with limited expected impact from Middle East developments and continued focus on price adjustments and productivity improvements.

• Total comprehensive income for the period was ¥73,625 million, a significant turnaround from a loss in the prior year period.

Financial highlights

• Net sales: ¥1,100.6 billion for 1H FY2026, up ¥105.1 billion year-over-year.

• Operating profit: ¥64.7 billion, up ¥10.6 billion year-over-year.

• Profit before tax: ¥60.3 billion, up ¥26.6 billion; profit attributable to owners: ¥35.5 billion, up ¥21.6 billion.

• Free cash flow: ¥10.1 billion; CapEx: ¥90.1 billion (down ¥6.8 billion year-over-year); R&D: ¥28.8 billion.

• Basic earnings per share surged to ¥167.45 from ¥65.59 year-over-year.

Outlook and guidance

• Full-year FY2026 net sales forecast: ¥2,200 billion; operating profit: ¥150 billion.

• Operating profit margin expected to rise to 6.8%; ROE forecast at 5.2%.

• Dividend per share maintained at ¥210; stable dividend policy targeting DOE of ~3%.

• Life Science segment expected to turn profitable in Q4, with about half of next year’s orders already secured.

• Segment outlooks: growth in Chemicals and Life Science, stable to improving trends in other segments.