Sumitomo Bakelite: Lifts FY2027 profit forecast to ¥35bn

Sumitomo Bakelite raised its forecasts across all key measures, from revenue to net profit, for the year ending March 2027. The revised forecasts are 18.7% higher for revenue, 44.7% for business profit, 33.3% for operating profit and 22.8% for net profit compared with the previous estimates.

Sumitomo Bakelite cited stronger-than-expected demand for semiconductor materials as the reason for the upward revision.

• Demand growth: Demand for power devices and memory applications is increasing, driven by AI data centers.
• Second-half outlook: The company expects this demand to remain firm in the second half.
• Forecast assumptions: The revised outlook includes the impact of Sumitomo Bakelite's acquisition of a business from Kyocera.

The revised forecasts exceed the previous year's results across revenue, business profit, operating profit and net profit, as well as the prior estimates. Basic earnings per share are expected to reach ¥398.89, above the previous forecast of ¥324.84 and the previous-year result of ¥319.52. Rising AI-related demand is driving the stronger outlook, while the inclusion of the business acquisition means demand trends and the acquired business's contribution will bear watching.

Sumitomo Bakelite raised its interim dividend by ¥10 from its latest forecast and increased its expected year-end dividend by the same amount. The annual forecast is now ¥140 per share, up from the previous estimate of ¥120 and above the previous-year result of ¥110.

The record date for the interim dividend is Sept. 30, 2026, and its effective date is Dec. 1, 2026. The total interim dividend is ¥6.142bn, funded from retained earnings.

Sumitomo Bakelite said it aims to provide stable and consistent shareholder returns, taking into account funding needs, the execution of investments and future plans. It said the increase reflects a comprehensive assessment of its revised full-year earnings outlook and financial position.

The revision combines higher profit forecasts with a larger dividend. The annual dividend is set to rise by ¥30 from the previous-year result, as Sumitomo Bakelite passes some of the stronger earnings outlook on to shareholders.

The company cited expanding demand for semiconductor materials used in AI data centers as the main driver and expects it to remain firm in the second half. Investors will watch whether demand holds up as forecast and whether the outlook, which includes the Kyocera business acquisition, translates into actual results.