Kanto Denka Kogyo (4047) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, were ¥46,709 million, a 0.2% increase year-over-year, mainly driven by the Fine Chemicals Division despite a fire at the Shibukawa Plant.

• Ordinary profit rose by ¥400 million (13.9%) year-over-year to ¥3,509 million, aided by foreign exchange gains and improved profitability in the Fundamental Chemicals Division.

• Profit attributable to owners of parent declined by 7.8% year-over-year to ¥1,724 million due to a recorded loss on disaster from the plant fire.

Financial highlights

• Operating profit for the nine months was ¥2,608 million, nearly flat year-over-year.

• Ordinary profit: ¥3,509 million, up 13.9% year-over-year.

• Basic EPS: ¥30.04, down from ¥32.53 year-over-year.

• Total assets as of December 31, 2025, were ¥128,276 million, up ¥4,658 million from March 31, 2025.

• Net assets rose to ¥69,720 million, with an equity ratio of 53.0%.

Outlook and guidance

• Full-year net sales forecast is ¥66,500 million, up 6.7% year-over-year.

• Operating profit is projected at ¥4,500 million, ordinary profit at ¥5,300 million, and profit attributable to owners of parent at ¥2,700 million, a 16.9% decrease year-over-year.

• Basic earnings per share for the full year are forecast at ¥47.03.

• Dividend forecast for the year is ¥18.00 per share.

• Upward revisions to sales and operating profit for fine chemicals, leading to higher ordinary and net profit forecasts.