Kanto Denka Kogyo (4047) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025/FY2026 decreased by 2.0% year-over-year, mainly due to declines in Fine Chemicals and Ferrochemicals and the absence of technical support fees, despite higher specialty gas sales from improved semiconductor demand.

• Operating profit dropped by 38.5% year-over-year, impacted by lower sales and increased inventory valuation losses.

• Ordinary profit fell by 61.3% year-over-year, reflecting reduced operating profit and lower foreign exchange gains.

• Profit attributable to owners of parent declined by 54.5% year-over-year to ¥531 million.

• Comprehensive income was negative ¥335 million, compared to ¥2,151 million in the prior year.

Financial highlights

• Q1 FY2025/FY2026 net sales: ¥15.1 billion (down 2.0% year-over-year).

• Operating profit: ¥0.7–0.779 billion (down 38.5% year-over-year).

• Ordinary profit: ¥0.7–0.743 billion (down 61.3% year-over-year).

• Basic EPS: ¥9.24 (down from ¥20.29 year-over-year).

• Total assets as of June 30, 2025, were ¥123,347 million, a slight decrease from March 31, 2025.

Outlook and guidance

• Full-year FY2026 net sales forecast is ¥66,500 million, up 6.7% year-over-year, but operating profit and profit attributable to owners of parent are projected to decline.

• Sales and profit forecasts have been revised downward due to underperformance in specialty chemicals.

• The impact of the August 7, 2025 fire at the Shibukawa Plant is under investigation and not reflected in current forecasts.