Kuraray (3405) Q1 2027 earnings summary

Executive summary

• Net sales rose to ¥200.9 billion (3.1% year-over-year) in Q1 FY2026, but operating income fell by ¥3.8 billion to ¥14.9 billion and net income attributable to owners dropped 35.0% to ¥7.8 billion.

• Ordinary income and net income attributable to owners also declined year-over-year.

• Economic uncertainty increased due to Middle East instability, impacting raw material procurement and logistics.

• Organizational reform shifted Electronics Materials Promotion Division from "Others" to "Functional Materials" segment.

Financial highlights

• Net sales: ¥200.9 billion (up ¥6.1 billion or 3.1% year-over-year).

• Operating income: ¥14.9 billion (down ¥3.8 billion or 20.3% year-over-year).

• Ordinary income: ¥13.7 billion (down ¥4.1 billion or 22.9% year-over-year).

• Net income attributable to owners: ¥7.8 billion (down ¥4.2 billion or 35.0% year-over-year).

• EPS for Q1 2026 was ¥25.62, down from ¥37.07 in Q1 2025.

Outlook and guidance

• FY2026 full-year net sales forecast: ¥850.0 billion, up ¥41.6 billion or 5.1% from FY2025.

• Operating income forecast: ¥70.0 billion, up ¥11.1 billion or 18.9% year-over-year.

• Net income attributable to owners forecast: ¥40.0 billion, up 435.6% year-over-year.

• No revision to consolidated earnings forecast due to ongoing uncertainties in the Middle East.