Mitsubishi Chemical Group has reported a sharply uneven performance for the fiscal year ended March 31, 2026, with steady gains in parts of its Specialty Materials business offset by weakness in key chemical markets and one-off losses tied to major restructuring.
While Specialty Materials held up overall, the company said the broader environment for MMA and Materials & Polymers remained “sluggish.” Rising geopolitical risks—particularly in the Middle East since March—have further clouded the outlook.
Core operating income for the Chemicals Business came in at a ¥24.3 billion profit. Within Specialty Materials, higher sales volumes and improved price gaps helped lift revenue, supported further by cost reductions from structural reforms in the coke business.
However, these gains were outweighed by a steep downturn in the MMA monomer market and an impairment loss on Soarnol-related fixed assets in the UK, driving a 43% year-on-year drop in core operating income for the segment.
Despite that, the broader MCG Group limited its decline, with overall core operating income down just 2% year on year, helped by solid performance in Industrial Gases.
Bottom-line profit told a much harsher story. Net income attributable to owners of the parent plunged 74% year on year, despite proceeds from the transfer of Mitsubishi Tanabe Pharma. The sharp decline was driven by losses linked to the exit from coke and carbon materials businesses, along with special retirement expenses tied to the company’s Next-Stage Support Program.
Looking ahead, Mitsubishi Chemical Group is signaling a strong recovery. For the fiscal year ending March 31, 2027, it forecasts core operating income of ¥305.0 billion. The Chemicals Business alone is expected to rebound significantly, rising ¥75.7 billion year on year to ¥100.0 billion, driven by higher Specialty Materials sales, cost reductions, and a recovery in the MMA monomer market.
Industrial Gases is also expected to remain stable, with core operating income projected to rise by ¥4.3 billion to ¥205.0 billion.
However, the company cautioned that its forecast does not factor in risks from the Middle East situation, including the potential closure of the Strait of Hormuz.
Net income attributable to owners of the parent is expected to surge to ¥127.0 billion, up ¥115.2 billion from the prior year, which was heavily impacted by non-recurring losses.
The company also projected a year-end dividend of ¥16 per share and an annual dividend of ¥32, while reiterating its focus on “three disciplined approaches in business operations” and a continued shift of resources toward next-generation growth areas.
