Kureha Corporation (4023) Q1 2027 earnings summary

Executive summary

• FY2026 1Q revenue and profit increased year-over-year, driven by strong performance in Advanced Materials and Specialty Plastics, as well as increased equity method income.

• Significant growth in core operating profit, especially in Advanced Materials due to improved PGA earnings and reversal of inventory valuation losses.

• Sustainability-focused management and adoption of core operating profit metric to clarify recurring performance.

• Home Products sales surged due to consumer stockpiling amid Middle East tensions.

Financial highlights

• FY2026 1Q revenue: ¥42.1bn, up 15.2% YoY; core operating profit: ¥5.9bn, up 209.0% YoY; operating profit: ¥5.8bn, up 149.4% YoY.

• EBITDA for 1Q: ¥8.7bn, up ¥3.3bn YoY.

• Profit attributable to owners: ¥4.3bn, up 108.1% YoY; EPS up to ¥112.24 from ¥45.35.

• Total assets at quarter-end: ¥343.4bn, up ¥4.96bn from prior year-end.

• FX rates: JPY/USD 159.6, JPY/EUR 185.4, JPY/CNY 23.4; crude oil price (Brent): $95.6/bbl.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥173.0bn, up 7.0% YoY, mainly due to price revisions and shipment timing.

• Core operating profit forecast at ¥12.0bn (down 17.1% YoY); profit attributable to owners projected at ¥7.5bn.

• Dividend forecast raised to ¥216/share, targeting a 5% DOE.

• Operating profit and net profit forecasts unchanged from May 2026, considering potential business environment changes.