Toagosei Q3 FY2026: Profit climbs as semiconductor and polymer sales expand

Toagosei recorded revenue of ¥125.461 billion for January to September 2026, up 4.7% from a year earlier. Operating profit rose 11.1% to ¥11.787 billion, while net income attributable to owners of the parent increased 11.6% to ¥8.927 billion. Revenue increased by about ¥5.6 billion and operating profit by about ¥1.2 billion from the year-earlier period.

• Higher sales volumes: Sales grew for semiconductor-related products and acrylic polymers used in mobility applications.
• Improved margins: Price revisions and profitability improvements lifted earnings in businesses including polymers and oligomers.
• Earnings headwinds: Core chemicals profit declined as acrylic monomer sales fell and costs from a major scheduled maintenance shutdown increased.

Sales growth and better margins drove overall gains, though results varied by business. AI-related investment supported the global economy, while tensions in the Middle East and fluctuations in crude oil and naphtha prices continued. These uncertainties were among the factors behind the company’s decision to maintain its full-year forecast.

Revenue increased year on year in five of Toagosei’s six businesses. Polymer and oligomer and advanced materials stood out for profit growth, while operating profit declined in core chemicals and other businesses, as shown in the chart.

Core Chemicals revenue fell 2.2% year on year. Sales volumes increased for electrolytic products and industrial gases, but acrylic monomer revenue declined because of raw-material procurement constraints linked to Middle East tensions and the discontinuation of some products. Scheduled maintenance costs also weighed on profit.

Polymer and Oligomer revenue rose 12.4%. Acrylic polymers for mobility, pharmaceuticals and cosmetics, and semiconductors gained ground, as did acrylic oligomers for electronic materials. Price revisions and improved profitability also lifted earnings.

Adhesive Materials revenue increased 9.7%. Price revisions for household products in the U.S. and solid demand for functional adhesives used in mobility and smartphones supported growth.

Advanced Materials revenue advanced 16.5%. Demand for high-purity inorganic chemicals used in semiconductors remained firm, driving higher sales volumes. Sales of inorganic antibacterial agents declined, but the business as a whole posted higher revenue and profit.

Resin Processed Products revenue grew 6.5%. Products for aging infrastructure and eco-materials for Southeast Asia offset declines in life-support products, including bathing and nursing-care supplies.

• Other businesses: Lower revenue and weaker earnings in transportation contributed to a 3.6% year-on-year revenue decline and an 11.2% drop in operating profit.

Demand related to semiconductors, along with price revisions and profitability improvements, supported earnings across several businesses. In core chemicals, however, raw-material procurement and plant maintenance weighed on results, making reliable access to materials and sustained profitability key challenges.

Toagosei left its consolidated forecast for the year ending December 2026 unchanged. It expects revenue of ¥170 billion, operating profit of ¥15.5 billion and net income attributable to owners of the parent of ¥11.8 billion.

The company made no changes to the forecast it announced on July 31. Higher sales volumes and price revisions through the third quarter supported profit, but Toagosei said it needs to assess crude oil and naphtha prices, geopolitical risks, and currency and interest-rate trends from the fourth quarter onward. It plans to disclose any forecast revision promptly if one becomes necessary.

Total assets stood at ¥297.229 billion at the end of September 2026, up 2.8% from the end of December 2025. The equity ratio was 73.8%, down 0.5 percentage point from 74.3% at the previous fiscal year-end.

The annual dividend forecast is ¥7 higher than the previous year’s actual payout, an increase in shareholder returns. Toagosei also acquired 1,664,100 treasury shares under a board resolution made in February. Gains in the value of investment securities as share prices rose boosted assets, while cash and deposits declined from fiscal year-end and commercial paper was newly recorded. The company does not prepare a quarterly cash flow statement, so operating, investing and financing cash flows for the period are not available.

Research and development spending totaled ¥5.297 billion in January-September 2026. Toagosei said there were no significant changes in its research and development activities.

• R&D spending: The earnings release does not disclose the year-earlier amount, so a year-on-year comparison is unavailable.
• Focus areas: Sales volumes increased mainly for semiconductor-related products and products in the polymer and oligomer business.
• Production efficiency: The company is pursuing efficiency improvements alongside sales growth and efforts to improve profitability.

Toagosei is seeking to capture semiconductor-related demand while improving margins on existing products. The earnings release does not provide a breakdown of R&D spending or details of individual investment projects, leaving the commercialization of research and its contribution to sales growth as areas to watch.

Toagosei expects the business environment to remain uncertain from the fourth quarter onward. Key external factors and business-specific challenges that could affect performance include:

• Geopolitical risks and raw-material procurement: Middle East tensions constrained procurement of raw materials for acrylic monomer through the second quarter. If the situation persists, production and sales could continue to be affected.
• Crude oil and naphtha prices: Market swings affect raw-material costs and product profitability. The ability to continue passing on costs through price revisions will influence earnings.
• Currency and interest-rate movements: Exchange-rate and interest-rate trends could add uncertainty to the company’s outlook.
• Core chemicals sales and maintenance costs: Lower acrylic monomer sales volumes and costs from a major scheduled maintenance shutdown reduced profit. Restoring plant utilization and demand remains a challenge.
• Changes in market demand: Semiconductor-related demand is supporting results, but a shift in demand could also affect sales of advanced materials and other products.

Against this backdrop, Toagosei maintained its full-year forecast, which assumes no major change in the business environment. The company said it will promptly disclose any revision if it determines one is necessary.