| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥30745.0B | ¥30373.1B | +1.2% |
| Operating Income / Operating Profit | ¥2312.0B | ¥2119.2B | +9.1% |
| Ordinary Income | ¥2304.2B | ¥1934.6B | +19.1% |
| Net Income / Net Profit | ¥1130.0B | ¥370.2B | +205.2% |
| ROE | 5.2% | 1.9% | - |
For the cumulative Q2 of FY2026 (hereafter, this period), Revenue / Net Sales were ¥3兆745B (YoY +¥372B +1.2%), Operating Income was ¥2,312B (YoY +¥193B +9.1%), Ordinary Income was ¥2,304B (YoY +¥370B +19.1%), and Net Income attributable to owners of the parent (hereafter, Net Income) was ¥1,588B (YoY +¥238B +17.6%), marking record-high profits for the second consecutive period. Gross margin improved to 32.8% (YoY +125bp), Operating Margin was 7.5% (YoY +54bp), and Net Margin was 5.2% (YoY +73bp), showing broad-based profitability improvement. Healthcare led with Operating Income of ¥835B (+30.3%), Housing was stable at ¥998B (+4.0%), and Materials declined to ¥683B (▲14.5%) due to market conditions and scheduled maintenance. Special gains/losses partially offset Net Income—gain on sale of investment securities ¥417B versus restructuring costs ¥479B and impairments ¥167B—but underlying earnings improvement delivered overall profit growth.
【売上高】 Consolidated Revenue was ¥3兆745B (+1.2%), a modest increase. Healthcare was ¥6,642B (+7.8%), driven by expanded sales of core formulations and new consolidation of Calliditas; Housing was ¥1兆885B (+4.1%), supported by higher average contract prices in construction contracting and steady real estate development; Materials was ¥1兆3,199B (▲4.8%), weighed down by inventory timing variances in Essential Chemicals and impacts from scheduled maintenance. By region: Japan ¥1兆3,800B (+0.2%) broadly flat, U.S. ¥6,535B (+9.3%) benefiting from dollar strength and business expansion, China ¥2,540B (▲11.1%) showing demand slowdown, and Other ¥7,871B (+1.4%), resulting in overall revenue growth.
【損益】 Gross profit was ¥1兆86B (gross margin 32.8%, YoY +125bp) with significant margin improvement. SG&A was ¥7,774B (SG&A ratio 25.3%, YoY +68bp) increasing but outpaced by gross profit improvement, yielding Operating Income of ¥2,312B (Operating Margin 7.5%, YoY +54bp). Non-operating income was ¥317B (interest income ¥127B, equity in earnings ¥90B, etc.) and non-operating expenses were ¥325B (interest expense ¥125B, etc.), roughly balanced, producing Ordinary Income of ¥2,304B (+19.1%). Special items were a net loss of ▲¥158B: Special gains ¥662B (gain on sale of investment securities ¥417B, gain on sale of fixed assets ¥36B, etc.) versus Special losses ¥821B (restructuring costs ¥479B, impairments ¥167B, etc.), which temporarily pressured Net Income. Profit before tax was ¥2,146B (+10.3%), income taxes ¥511B (effective tax rate 23.8%), non-controlling interests ¥48B deducted, yielding Net Income ¥1,588B (+17.6%, Net Margin 5.2%), concluding with revenue and profit growth.
Core businesses are Healthcare (sales composition 21.6%) and Housing (35.4%). On an Operating Income basis, Healthcare ¥835B (profit composition 32.7%) and Housing ¥998B (39.1%) account for ~70% of total. Healthcare delivered high-margin, substantial growth with Operating Income ¥835B (+30.3%, margin 12.6%), aided by increased sales of core formulations and consolidation of Calliditas (Tarpeyo for IgA nephropathy), with Critical Care also steady due to new product launches. Housing posted Operating Income ¥998B (+4.0%, margin 9.2%) with rising average contract prices in construction contracting and steady real estate development and rental management; reduced overseas demand is expected to be offset by robust medium-to-long-term demand. Materials declined to Operating Income ¥683B (▲14.5%, margin 5.2%); Electronics (e.g., PAI-MEL for AI applications) performed well, but inventory timing variances in Essential Chemicals and scheduled maintenance weighed on overall results. Other operations ¥39B (+34.2%, margin 5.5%) were small but grew. The main drivers of profit growth were Healthcare expansion and Housing margin improvement; Materials' decline partially limited the overall profit increase. Segment margin dispersion: Healthcare 12.6%, Housing 9.2%, Materials 5.2%, with Healthcare notably above the company average (7.5%), indicating a high-margin business structure.
Profitability: ROE 7.3% (prior year 6.5%, 3-year avg 6.8%), Operating Margin 7.5% (prior 7.0%), Net Margin 5.2% (prior 4.4%). Cash quality: Operating Cash Flow / Net Income 1.91x (>=1.0x indicates cash backing of profits), Free Cash Flow (FCF) ¥1,962B abundant, OCF/EBITDA 0.77x (slightly below benchmark 0.9x, inventory increases have reduced working capital efficiency). Investment efficiency: CapEx / Depreciation 1.19x (>1.0x indicates growth investment phase; Construction in Progress ¥2,128B = 22.1% of PPE indicates a large investment pipeline). Financial soundness: Equity Ratio 52.3% (prior 47.7%), Current Ratio 235.2% (prior 183.5%), Debt/EBITDA 1.75x, Interest Coverage 18.6x—all within investment-grade ranges and solid. Working capital: CCC 167 days, DSO 61 days, DIO 140 days—inventory holding is lengthening, leaving room to improve working capital efficiency.
Operating Cash Flow was ¥3,031B (1.91x of Net Income), strong and well above Net Income ¥1,588B, indicating good cash conversion. Operating CF subtotal (before working capital changes) was ¥3,480B; increases in inventories ▲¥766B, trade receivables ▲¥124B, and decreases in trade payables ▲¥65B increased working capital and reduced CF, and after corporate tax payments ▲¥488B, OCF was ¥3,031B. Investing CF was ▲¥1,069B: CapEx ▲¥1,937B (1.19x depreciation ¥1,626B) and intangible asset acquisitions ▲¥174B, partially offset by proceeds from sale of subsidiary shares ¥626B and sale of investment securities ¥489B, limiting net outflow. Financing CF was ▲¥2,454B: short-term borrowings repayments ▲¥1,068B, long-term borrowings repayments ▲¥639B, bond redemptions ▲¥200B reducing interest-bearing debt, plus shareholder returns dividends paid ▲¥544B and share buybacks ▲¥23B. FCF was ¥1,962B (OCF ¥3,031B − Investing CF ▲¥1,069B), ample and covers total shareholder returns of ¥567B by 3.46x, indicating high sustainability. Cash generation assessment: “Strong”; OCF/EBITDA 0.77x is below the 0.9x benchmark due to inventory increases, but normalization of working capital should materially improve this.
Ordinary Income ¥2,304B vs. Net Income ¥1,588B shows a divergence of ¥716B (31.1%), mainly due to net special items ▲¥158B (restructuring costs ¥479B and impairments ¥167B exceeding gain on sale of investment securities ¥417B) and income taxes ¥511B. Non-operating income ¥317B is 1.0% of Revenue, mainly interest income ¥127B and equity in earnings ¥90B. OCF ¥3,031B is 1.91x Net Income ¥1,588B, indicating accruals are healthy and earnings quality is good. Restructuring costs (withdrawal from MMA and ethylene businesses, reconfiguration of Mizushima plant, etc.) and impairments are temporary factors; similar items occurred in the prior year (restructuring ¥184B, impairments ¥122B), so repeated one-off charges associated with ongoing portfolio transformation warrant monitoring. Nevertheless, the uptrend in Operating Income and Ordinary Income reflects improvement in underlying earnings, indicating reasonably high sustainability.
Full Year / FY guidance: Revenue ¥3兆2,540B (YoY +5.8%), Operating Income ¥2,480B (YoY +7.3%), Ordinary Income ¥2,475B (YoY +7.4%), Net Income ¥1,600B (YoY +0.8%). At the cumulative Q2 point, progress rates vs. FY guidance were Revenue 94.5%, Operating Income 93.2%, Ordinary Income 93.1%, Net Income 99.3%—well ahead of the standard Q2 progress benchmark of 50%. The >+40pt deviation from standard progress is due to timing: Aicuris acquisition (¥1,431B, completed April 2026) and other items having full-year contribution concentrated in H2, resulting in Q2-year-to-date results being front-loaded. Forecast adjustments from the initial plan have already been made; FX assumption ¥150/USD (realized ¥151), Middle East situation impacts not reflected, and all segments are expected to post profit growth in FY2026. Order backlog data not disclosed, but increases in Housing inventories for real estate development (prior ¥3,415B → this period ¥3,696B, +8.2%) and Construction in Progress ¥2,128B (22.1% of PPE) suggest visibility into future revenue. The large upward variance from standard progress is considered to stem from timing differences between divestitures (blood purification, diagnostics, etc.) and acquisitions (Calliditas, Aicuris), implying potential deceleration in H2 that should be factored into projections.
Annual dividend ¥42 (prior ¥40, +¥2) implying a Payout Ratio of 36.1%; total dividends ¥544B relative to FCF ¥1,962B (FCF coverage 3.61x) are comfortably covered by internal funds. Share buybacks authorized ¥400B (approved Nov 2025, acquisition period Nov 2025–Oct 2026), with ¥23B executed this period. Total Return Ratio is (dividends ¥544B + buybacks ¥23B) ÷ Net Income ¥1,588B = 35.7%, conservative. Full-year dividend guidance ¥44 (+¥2 increase) marks a second consecutive year of dividend increase, with an expected Payout Ratio 36.8%, indicating high sustainability. From FY2026, a special incentive program for the employee share ownership plan will be introduced to promote awareness of corporate value enhancement. Reduction of strategic shareholdings continues (FY2021 ¥1,945B → FY2025 ¥1,402B, ▲28%), balancing capital efficiency improvement and shareholder returns.
【短期】（今後6ヶ月）Completion of Aicuris acquisition (Apr 2026, ¥1,431B) to strengthen severe infection pipeline; PAI-MEL capacity expansion construction progress (¥160B, production start H1 FY2028 planned); new alkaline water electrolysis system factory construction (¥310B, production start FY2028 planned); improvement in Materials profitability as inventories normalize; timing and magnitude of incorporating Middle East developments into forecasts; assessment of U.S. tariff policy concretization and impact on procurement costs.
【長期】（1～3年）Canada integrated line for wet-process separators for LIBs to commence commercial production H2 FY2029 (approx. 700 million m2/year), pharmaceutical licensing-in investments ~¥400B over the 3-year mid-term plan to expand pipeline, sustained profit growth trend via management focus on Healthcare, Housing, and Materials, achievement of ROE target 8% and PBR >1x, structural transformation of Essential Chemicals (withdrawal from MMA and ethylene, completion of Mizushima plant reconfiguration) to improve profitability, and conversion of Housing real estate development inventories (¥3,696B) into revenue and cash as disposals progress.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 7.5% | 7.8% (4.6%–12.3%) | -0.2pt |
| Net Margin | 3.7% | 5.2% (2.3%–8.2%) | -1.5pt |
In manufacturing, the company’s Operating Margin is around the median and competitiveness is standard; Net Margin is 1.5pt below the median, reflecting the weight of one-off charges.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 1.2% | 3.7% (-0.4%–9.3%) | -2.5pt |
Revenue growth lags the median, with Materials decline and weaker China demand restraining overall growth. Acceleration of medium-to-long-term growth depends on execution of investments in priority growth businesses.
※Source: Company compilation
Working capital efficiency deterioration: CCC 167 days, DIO 140 days indicate extended inventory holding; OCF/EBITDA 0.77x is below the 0.9x benchmark. Inventories increased (prior ¥3,416B → this period ¥3,696B, +8.2%); inventory buildup materially exceeding Revenue growth rate +1.2% carries markdown and write-off risks, making improvement in cash conversion urgent.
Large investment pipeline commissioning risk: Construction in Progress ¥2,128B (22.1% of PPE) is high, with PAI-MEL expansion ¥160B, alkaline water electrolysis ¥310B, separators integrated line, etc. If startups are delayed or demand shifts, investment recovery periods could lengthen and ROIC could decline.
Materials market sensitivity: Inventory timing variances and naphtha market fluctuations led to an Operating Income decline of ▲¥140B YoY in Essential Chemicals; resilience to market swings is relatively weak. While structural transformation (withdrawal from MMA and ethylene) is underway, delayed market recovery or escalation of Middle East risks could undermine expected Materials improvements in FY2026.
Profitability improvement and robustness of underlying earnings: Gross margin +125bp, Operating Margin +54bp, Net Margin +73bp with ROE improving to 7.3% from 6.5% prior. High-margin Healthcare (margin 12.6%, Operating Income +30.3%) drove performance, with Housing stable on higher average contract prices (Operating Income +4.0%). OCF/Net Income 1.91x and FCF ¥1,962B show good cash conversion of earnings, indicating high quality and sustainability of underlying earnings.
Room to improve working capital efficiency and cash conversion: CCC 167 days, DIO 140 days, OCF/EBITDA 0.77x indicate working capital challenges; inventory increase (inventories +¥280B, +8.2%) dampens cash conversion. Progress in consuming Construction in Progress ¥2,128B (22.1% of PPE) and inventory normalization could help reach OCF/EBITDA 0.9x and further strengthen FCF generation. Strict inventory and CIP management will be key drivers to achieve the ROE target of 8%.
Sustainability of shareholder returns and optimization of capital structure: Payout Ratio 36.1% with FCF coverage 3.61x means dividends are comfortably covered by internal funds; share buybacks ¥400B underway, reinforcing return policy. Reduction of strategic shareholdings ▲28% and compression of short-term borrowings ▲50.8% lower leverage (Debt/EBITDA 1.75x) and maintain a strong Equity Ratio 52.3%. Two consecutive dividend increases and the introduction of a special incentive for the employee share ownership plan demonstrate commitment to sustained corporate value enhancement and are expected to support medium-to-long-term shareholder value creation.
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