Sumitomo Seika Chemicals Company (TSE: 4008), the Osaka-based specialty chemicals maker and the world's leading producer of superabsorbent polymers (SAP), posted improved FY2026 results (year ended March 31, 2026) under Japanese GAAP. Consolidated revenue edged up 0.5% year-on-year to ¥148.4 billion, but operating profit jumped 35.0% to ¥14.5 billion, ordinary profit climbed 37.3% to ¥15.2 billion, and net profit attributable to owners of the parent rose 28.8% to ¥7.7 billion.
Comprehensive income surged 348.1% to ¥12.9 billion. The operating margin widened to 9.8% and ROE improved to 7.8%. Basic EPS (retroactively adjusted for the 1-for-5 stock split effective April 1, 2026) came to ¥117.48 versus ¥90.12 a year earlier. The earnings recovery was driven less by volume than by a sharp easing of raw-material and fuel costs, which restored profitability across the core SAP franchise.
Superabsorbent polymers drive the margin recovery
By segment, Superabsorbent Polymers — the diaper-grade materials business — saw revenue rise 0.5% to ¥116.1 billion while segment operating profit jumped 42.5% to ¥11.5 billion on lower raw-material and fuel costs. Volumes increased in China, even as selling prices eased in step with cheaper feedstock. The Functional Materials segment grew revenue 0.5% to ¥31.9 billion and operating profit 11.0% to ¥2.9 billion, supported by water-soluble polymers and PSA (pressure-swing adsorption) oxygen generators. The small Other segment lifted revenue 22.8% to ¥0.3 billion.
Balance sheet, dividend and stock split
Total assets stood at ¥152.7 billion and net assets at ¥103.6 billion, giving an equity ratio of 67.8% and book value per share of ¥1,601.96. Operating cash flow reached ¥17.5 billion and cash at year-end was ¥18.0 billion. The company raised its annual dividend for FY2026 to ¥220 per share (¥100 interim + ¥120 year-end), up from ¥200, for a 37.3% payout ratio. A 1-for-5 stock split took effect on April 1, 2026; on the post-split basis the FY2027 dividend is forecast at ¥48 per share (¥24 interim + ¥24 year-end).
FY27 guidance withheld on Middle East and Hormuz risk
Sumitomo Seika declined to issue FY2027 (ending March 2027) guidance, stating that it cannot yet reasonably estimate the impact of military conflict in the Middle East and a potential closure of the Strait of Hormuz on its business. The company said it will disclose a forecast once the effects become estimable. The strait is a critical chokepoint for the petrochemical feedstock and energy flows that underpin the group's cost base.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 148.4 | 147.6 | +0.5% |
| Operating profit (¥ billion) | 14.5 | 10.7 | +35.0% |
| Ordinary profit (¥ billion) | 15.2 | 11.1 | +37.3% |
| Net profit attrib. to owners (¥ billion) | 7.7 | 6.0 | +28.8% |
| EPS (¥, post 1-for-5 split) | 117.48 | 90.12 | +30.4% |
| Operating margin | 9.8% | 7.3% | +2.5pp |
| ROE | 7.8% | 6.3% | +1.5pp |
| Equity ratio | 67.8% | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.