Mitsubishi Gas Chemical (4182): FY2025 Results Summary — Net Loss on Impairment Losses; Profit Recovery and Dividend Increase Planned

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Mitsubishi Gas Chemical Company, Inc. (TSE 4182) announced its FY2025 (April 1, 2025–March 31, 2026) consolidated financial results on May 13, 2026. Net sales were ¥738.2 billion (down ¥35.3 billion, or 4.6%, year on year) and operating profit was ¥45.2 billion (down ¥5.5 billion, or 10.9%), as lower market prices for polycarbonate (PC) and methanol and the withdrawal from the ortho-xylene (OX) chain business outweighed higher sales volume of electronic materials. The bottom line swung to a net loss attributable to owners of parent of ¥40.3 billion (versus a profit of ¥45.5 billion in FY2024), mainly due to impairment losses recorded at the meta-xylenediamine (MXDA) plant in the Netherlands, the super-pure hydrogen peroxide plant in Taiwan, and multiple other businesses. For FY2026, the company forecasts net sales of ¥840.0 billion and a return to a profit attributable to owners of parent of ¥46.0 billion, and plans an annual dividend of ¥110 per share, an increase of ¥10 on an ordinary dividend basis.

Consolidated Results (Full-Year Actual)

Net sales decreased mainly due to lower PC and methanol prices and the withdrawal from the OX chain business, despite higher sales volume of electronic materials driven by strong demand. Operating profit decreased mainly due to the lower prices, intensifying competition in MXDA and its derivatives, and higher fixed costs for capacity expansion in inorganic chemicals. Ordinary profit fell to ¥51.9 billion, reflecting the lower operating profit and a decline in equity in earnings of affiliates, including an impairment loss at the methanol production company in Trinidad and Tobago. Figures in the tables below are in billions of yen unless otherwise noted; per the company’s presentation, amounts are rounded down to the closest ¥0.1 billion, and negative amounts are shown in parentheses.

Item	FY2025	FY2024	Change	Change (%)
Net sales	738.2	773.5	-35.3	-4.6
Operating profit	45.2	50.8	-5.5	-10.9
Ordinary profit	51.9	60.3	-8.3	-13.9
Profit attributable to owners of parent	(40.3)	45.5	-85.8	–
EBITDA	92.8	97.3
EPS (yen)	(207.04)	228.93
ROIC (%)	3.2	6.4

Extraordinary losses totaled ¥82.7 billion, of which impairment losses were ¥78.4 billion: the MXDA plant in the Netherlands (¥55.4 billion), the super-pure hydrogen peroxide plant in Taiwan (¥10.6 billion), a hydrogen peroxide plant in China (¥5.3 billion), and MGC’s PC business (¥5.3 billion), among others. The company also recorded ¥1.0 billion in losses on termination of construction work for the Netherlands MXDA plant, whose construction discontinuation was decided in February 2026. In addition, an impairment loss of ¥4.2 billion at the methanol production company in Trinidad and Tobago (Caribbean Gas Chemical Limited) was recorded in non-operating expenses as share of loss of equity-method entities. Partially offsetting these, extraordinary income of ¥14.7 billion included a ¥9.0 billion gain on sales of non-business assets (2 properties) and a ¥4.9 billion gain on sales of investment securities.

Segment Results

In the Green Energy & Chemicals (GEC) segment, net sales and operating profit decreased due to deterioration of methanol market prices (FY2024 $334 to FY2025 $317) and a decline in profitability of MXDA and its derivatives; ordinary profit also fell on the impairment loss at the Trinidad and Tobago methanol production company. In the Specialty Chemicals segment, sales and profits increased on strong demand for BT materials and brisk sales of products for advanced semiconductors (hybrid chemicals, OPE), even though inorganic chemicals were weighed down by higher fixed costs from capacity expansion in Taiwan and engineering plastics suffered from lower PC and polyacetal (POM) prices.

Segment	Metric	FY2025	FY2024
Green Energy & Chemicals	Net sales	286.9	323.1
Green Energy & Chemicals	Operating profit	5.6	12.7
Green Energy & Chemicals	Ordinary profit	3.8	20.5
Specialty Chemicals	Net sales	448.3	444.1
Specialty Chemicals	Operating profit	43.8	41.3
Specialty Chemicals	Ordinary profit	49.1	43.9
Other/Adjustment	Net sales	2.9	6.2
Other/Adjustment	Operating profit	(4.1)	(3.2)

FY2026 Forecast

For FY2026, net sales are forecast to increase year on year, mainly due to a recovery in methanol market prices, pass-through of raw material cost increases, and continued strong demand for electronic materials. Operating profit is forecast to increase on higher net sales along with a decrease in depreciation expense resulting from the impairment losses recorded in the previous fiscal year. Profit attributable to owners of parent is forecast to return to ¥46.0 billion, helped by the absence of the extraordinary losses recorded in FY2025. Assumptions are an exchange rate of $1 = ¥155 and 1 euro = ¥180, full-year crude oil at $90/bbl (1H $100/bbl, 2H $80/bbl, reflecting the Middle East situation), and a methanol market price of $375. By segment, GEC forecasts net sales of ¥353.4 billion and operating profit of ¥12.3 billion, and Specialty Chemicals forecasts net sales of ¥481.9 billion and operating profit of ¥51.7 billion.

Item	FY2026 Forecast	FY2025 (Actual)	Change	Change (%)
Net sales	840.0	738.2	+101.7	+13.8
Operating profit	59.0	45.2	+13.7	+30.3
Ordinary profit	66.0	51.9	+14.0	+27.1
Profit attributable to owners of parent	46.0	(40.3)	+86.3	–
EBITDA	110.9	92.8
EPS (yen)	236.06	(207.04)

Shareholder Returns

The return policy under the current medium-term management plan (Grow UP 2026) is a progressive dividend policy, with a total payout ratio aiming for 50% and DOE (dividend on equity) of 3%. Despite recording a net loss in FY2025, the company states it retains a sound financial position, and the annual dividend for FY2025 is unchanged at ¥100 per share (interim ¥50, year-end ¥50; the year-end dividend is scheduled to be formally authorized by the Board of Directors on May 26, 2026), an increase of ¥5 from the previous year. For FY2026, the final year of the medium-term plan, the annual dividend is planned at ¥110 per share (interim ¥55, year-end ¥55), an increase of ¥10 per share on an ordinary dividend basis.

Item	FY2024	FY2025	FY2026 (Planned)
Annual dividend per share (yen)	95.00	100.00	110.00
Interim dividend (yen)	45.00	50.00	55.00
Total payout ratio (%)	74.1	–	46.6

Topics

As part of structural reform of the PC business, the company decided to reduce PC production capacity, including discontinuing production at the PC plant of the Kashima Plant around March 2028; impairment losses were recorded for non-current assets related to the business. The company positions its Uniqueness & Presence (U&P) businesses as priorities for management resource allocation, with three ICT businesses — electronic materials (BT materials, with the No. 1 global market share), electronic chemicals such as super-pure hydrogen peroxide (No. 1 global share), and optical materials (optical polymers, No. 1 global share as a highly refractive resin) — as key growth drivers. In FY2025, operating profit of the U&P businesses was ¥45.2 billion, of which the three ICT businesses contributed ¥33.7 billion; for FY2026, the company forecasts ¥58.0 billion and ¥41.0 billion, respectively. Regarding the Middle East situation, constraints have arisen on product shipments from the Saudi Arabia methanol plant, but the impact is otherwise limited at present, and the company is working to pass rising manufacturing costs through to selling prices.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.