DIC (4631) Q2 2026 earnings summary

Executive summary

• Achieved record highs in net sales, operating income, ordinary income, and net income attributable to owners of the parent for the six months ended June 30, 2026, driven by robust demand in chemitronics/digital materials and effective sales price adjustments.

• Operating income surged 92.2% year-over-year to ¥51.8 billion, with net sales up 13.3% to ¥593.0 billion, and EBITDA rising 64.8% to ¥80.9 billion.

• Net income attributable to owners of the parent increased 184.1% to ¥37.2 billion, reflecting improved profitability and reduced foreign exchange losses.

• Shareholder returns enhanced with annual dividends per share raised to ¥150.00 and a ¥10.0 billion share buyback, targeting a total payout ratio of 50%.

• Comprehensive income reached ¥54.2 billion, up from a loss in the prior year period.

Financial highlights

• Net sales increased 13.3% year-over-year to ¥593.0 billion; operating income rose 92.2% to ¥51.8 billion; net income attributable to owners of the parent jumped 184.1% to ¥37.2 billion.

• Gross profit increased to ¥145.2 billion from ¥116.8 billion year-over-year.

• Free cash flow increased to ¥24.1 billion from ¥6.0 billion in the prior year period.

• Shareholders’ equity ratio improved to 38.3% as of June 30, 2026.

• Net cash provided by operating activities was ¥42.1 billion, up from ¥21.5 billion.

Outlook and guidance

• Full-year 2026 forecasts revised upward: net sales expected at ¥1,140.0 billion (+8.3%), operating income at ¥78.0 billion (+49.4%), and net income attributable to owners of the parent at ¥48.0 billion (+48.4%).

• Operating margin for the full year forecasted at 6.8%; ROE at 10.1%; ROIC at 7.4%.

• Annual dividend forecast raised to ¥150.00 per share; total payout ratio expected at 50%.

• Management anticipates record-high results but notes downside risks in H2 from potential demand declines and cost pressures.

• EBITDA for FY2026 projected at ¥130.0 billion (+19.0%).