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Financial Results Presentation5201AGC Inc.Construction and Materials

Second-Quarter Results Briefing Materials for the Fiscal Year Ending December 2026

In the first half of FY2026, revenue and operating profit increased year on year, driven by the weaker yen, higher shipments and pricing policies. The full-year earnings forecast and segment forecasts remain unchanged.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
1051
¥100 million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales11,006 Hundreds of millions of yen+10.6%
Operating profit647 Hundreds of millions of yen+19.6%
Net income355 Hundreds of millions of yen+155.4%
Results for the three months of the current quarter
Net Sales
5,626 Hundreds of millions of yen
Operating profit
262 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
22,000 Hundreds of millions of yen
Operating profit
1,500 Hundreds of millions of yen
Income before taxes
1,240 Hundreds of millions of yen
Profit attributable to owners of the parent
770 Hundreds of millions of yen
Dividend per share
¥210
Operating profit margin
6.8 %
ROE
5.2 %
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales50 %
Operating profit43 %
By segmentArchitectural Glass: revenue 48%, operating profit 44%; Automotive: 55%, 42%; Electronics: 48%, 42%; Chemicals: 49%, 50%; Life Science: 45%, operating profit not disclosed; Ceramics & Other: 41%, 75%; Eliminations: 24%, operating profit not disclosed
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The foreign exchange impact was +¥67.9 billion on revenue, while the impact of changes in the scope of consolidation was -¥1.6 billion
Factors increasing revenue
  • Yen depreciation effect
  • Higher shipments in Essential Chemicals Southeast Asia
  • Higher shipments in Integrated Chemicals
  • Higher shipments of Electronic Materials
  • Pricing policy in Integrated Chemicals
  • Pricing policy in European Architectural Glass
Factors reducing revenue
  • Lower shipments in North American and European Architectural Glass
Factors increasing operating profit
  • Revenue increase
  • Improved profitability in Life Science
Factors reducing operating profit
  • Rising manufacturing costs
Factors affecting profit before tax and net profit
  • Foreign Exchange Gains
  • Absence of impairment losses on the biopharmaceutical CDMO business
  • Increase in business structure improvement costs
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
1USD¥155.0 (FY2026 average during the fiscal year)
1EUR¥180.0 (FY2026 average during the fiscal year)
Crude oilUSD 100.0/BBL (Dubai, FY2026 average during the fiscal year)
Global economyModerate growth
Semiconductor MarketGrowth driven by AI-related fields
Biopharmaceutical CDMO marketModerate recovery
New initiatives
  • Investment to increase production of advanced semiconductor products for AI and data centers (investment to increase production by 20%–50% decided; mass production to begin in 2028)
  • Development and launch of new semiconductor-related products, mainly packaging materials
  • Construction of the AGC Biologics Yokohama site and commencement of GMP-compliant commercial production in 2027
  • Long-term manufacturing contract with a major biopharmaceutical company
  • Closure of the Colorado site for the biopharmaceutical CDMO business, cost reductions and continuation of the sale process
Key KPIsA metric the company considers important as a management benchmark.
  • D/E ratio0.38 times
    Year on year against the same period last yearUp from 0.37 at the end of the previous fiscal year
  • ROCE10% target
  • Strategic businesses as a percentage of revenue25 %FY2026e
    Year on year against the same period last yearFY2025 24%
  • Strategic businesses as a percentage of operating profit53 %FY2026e
    Year on year against the same period last yearFY2025 46%
  • Revenue from semiconductor-related businesses500 Approximately ¥100 billion FY2025
    Year on year against the same period last yearTargeting approximately ¥100 billion by FY2030e
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The materials show year-on-year trends in volumes and prices for architectural glass, automobile production and display-panel demand. For example, automobile production in Japan increased 3% in the second quarter of FY2026, while production in Europe decreased 5%.
Segment results
Architectural Glass
Net Sales2,293 Hundreds of millions of yen
Operating profit88 Hundreds of millions of yen
Revenue_yoy_pct8.8 Hundreds of millions of yen
Operating profit_yoy_pct171.9 Hundreds of millions of yen
Automotive
Net Sales2,803 Hundreds of millions of yen
Operating profit133 Hundreds of millions of yen
Revenue_yoy_pct9.6 Hundreds of millions of yen
Operating profit_yoy_pct-11.9 Hundreds of millions of yen
Electronics
Net Sales1,744 Hundreds of millions of yen
Operating profit187 Hundreds of millions of yen
Revenue_yoy_pct3.7 Hundreds of millions of yen
Operating profit_yoy_pct-23.4 Hundreds of millions of yen
Chemicals
Net Sales3,320 Hundreds of millions of yen
Operating profit282 Hundreds of millions of yen
Revenue_yoy_pct16.2 Hundreds of millions of yen
Operating profit_yoy_pct25.3 Hundreds of millions of yen
Life Science
Net Sales723 Hundreds of millions of yen
Operating profit-61 Hundreds of millions of yen
Revenue_yoy_pct13.9 Hundreds of millions of yen
Operating profit_yoy_pct49.6 Hundreds of millions of yen
Ceramics and Other
Net Sales243 Hundreds of millions of yen
Operating profit15 Hundreds of millions of yen
Revenue_yoy_pct-13.2 Hundreds of millions of yen
Operating profit_yoy_pct150 Hundreds of millions of yen
Financial targets
ROCE10% group-wide
ROEApproximately 8%
FY2026 forecast ROE5.2%
Market Size / Share
Ceria slurry marketApproximately 10% CAGR from 2025 to 2030
Southeast Asian caustic soda demandApproximately 4% CAGR from 2025 to 2030
Southeast Asian PVC demandApproximately 4% CAGR from 2025 to 2030
Cumulative shipments of EUV lithography equipmentMore than double
Semiconductor-related product market shareHigh market share achieved (figure not disclosed)
Capital expenditures
¥1,900 100 million FY2026e
Annual Dividend
Annual¥210 per share
Payout ratio
Consolidated payout ratio58%（FY2026e）
DOE3.0%（FY2026e）
Total payout ratio58%（FY2026e）
Acquisition of treasury shares
Buyback limitTo be determined
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales11,006 Hundreds of millions of yen (YoY +10.6%)
Operating profit647 Hundreds of millions of yen (YoY +19.6%)
Net income355 Hundreds of millions of yen (YoY +155.4%)
Results for the three months of the current quarterNet Sales 5,626 Hundreds of millions of yen / Operating profit 262 Hundreds of millions of yen
Full-year earnings forecastNet Sales 22,000 Hundreds of millions of yen / Operating profit 1,500 Hundreds of millions of yen / Income before taxes 1,240 Hundreds of millions of yen / Profit attributable to owners of the parent 770 Hundreds of millions of yen / Dividend per share ¥210 / Operating profit margin 6.8 % / ROE 5.2 %
Progress against full-year forecastNet Sales 50 % / Operating profit 43 % / By segment Architectural Glass: revenue 48%, operating profit 44%; Automotive: 55%, 42%; Electronics: 48%, 42%; Chemicals: 49%, 50%; Life Science: 45%, operating profit not disclosed; Ceramics & Other: 41%, 75%; Eliminations: 24%, operating profit not disclosed
Segment resultsArchitectural Glass Net Sales 2,293 Hundreds of millions of yen / Operating profit 88 Hundreds of millions of yen / Revenue_yoy_pct 8.8 Hundreds of millions of yen / Operating profit_yoy_pct 171.9 Hundreds of millions of yen / Automotive Net Sales 2,803 Hundreds of millions of yen / Operating profit 133 Hundreds of millions of yen / Revenue_yoy_pct 9.6 Hundreds of millions of yen / Operating profit_yoy_pct -11.9 Hundreds of millions of yen / Electronics Net Sales 1,744 Hundreds of millions of yen / Operating profit 187 Hundreds of millions of yen / Revenue_yoy_pct 3.7 Hundreds of millions of yen / Operating profit_yoy_pct -23.4 Hundreds of millions of yen / Chemicals Net Sales 3,320 Hundreds of millions of yen / Operating profit 282 Hundreds of millions of yen / Revenue_yoy_pct 16.2 Hundreds of millions of yen / Operating profit_yoy_pct 25.3 Hundreds of millions of yen / Life Science Net Sales 723 Hundreds of millions of yen / Operating profit -61 Hundreds of millions of yen / Revenue_yoy_pct 13.9 Hundreds of millions of yen / Operating profit_yoy_pct 49.6 Hundreds of millions of yen / Ceramics and Other Net Sales 243 Hundreds of millions of yen / Operating profit 15 Hundreds of millions of yen / Revenue_yoy_pct -13.2 Hundreds of millions of yen / Operating profit_yoy_pct 150 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeFactors increasing revenue Yen depreciation effect, Higher shipments in Essential Chemicals Southeast Asia, Higher shipments in Integrated Chemicals, Higher shipments of Electronic Materials, Pricing policy in Integrated Chemicals, Pricing policy in European Architectural Glass / Factors reducing revenue Lower shipments in North American and European Architectural Glass / Factors increasing operating profit Revenue increase, Improved profitability in Life Science / Factors reducing operating profit Rising manufacturing costs / Factors affecting profit before tax and net profit Foreign Exchange Gains, Absence of impairment losses on the biopharmaceutical CDMO business, Increase in business structure improvement costs / Amount The foreign exchange impact was +¥67.9 billion on revenue, while the impact of changes in the scope of consolidation was -¥1.6 billion
Key KPIsIndicator name D/E ratio / Value 0.38 times / Year on year against the same period last year Up from 0.37 at the end of the previous fiscal year, Indicator name ROCE / Value 10% target / Year on year against the same period last year Not disclosed, Indicator name Strategic businesses as a percentage of revenue / Value 25 %（FY2026e） / Year on year against the same period last year FY2025 24%, Indicator name Strategic businesses as a percentage of operating profit / Value 53 %（FY2026e） / Year on year against the same period last year FY2025 46%, Indicator name Revenue from semiconductor-related businesses / Value 500 Approximately ¥100 billion (FY2025) / Year on year against the same period last year Targeting approximately ¥100 billion by FY2030e
Unit price and quantity metricsThe materials show year-on-year trends in volumes and prices for architectural glass, automobile production and display-panel demand. For example, automobile production in Japan increased 3% in the second quarter of FY2026, while production in Europe decreased 5%.
Assumptions Underlying the Business Outlook1USD ¥155.0 (FY2026 average during the fiscal year) / 1EUR ¥180.0 (FY2026 average during the fiscal year) / Crude oil USD 100.0/BBL (Dubai, FY2026 average during the fiscal year) / Global economy Moderate growth / Semiconductor Market Growth driven by AI-related fields / Biopharmaceutical CDMO market Moderate recovery
Financial targetsROCE 10% group-wide / ROE Approximately 8% / FY2026 forecast ROE 5.2% / FY2026 forecast D/E ratio Not disclosed
Annual DividendAnnual ¥210 per share / Interim Not disclosed / End of period Not disclosed
Payout ratioConsolidated payout ratio 58%（FY2026e） / DOE 3.0%（FY2026e） / Total payout ratio 58%（FY2026e）
Acquisition of treasury sharesBuyback limit To be determined / Amount Not disclosed / Number of Shares Not disclosed / Period Not disclosed
Capital expenditures¥1,900 100 million (FY2026e)
Market Size / ShareCeria slurry market Approximately 10% CAGR from 2025 to 2030 / Southeast Asian caustic soda demand Approximately 4% CAGR from 2025 to 2030 / Southeast Asian PVC demand Approximately 4% CAGR from 2025 to 2030 / Cumulative shipments of EUV lithography equipment More than double / Semiconductor-related product market share High market share achieved (figure not disclosed)
New initiativesInvestment to increase production of advanced semiconductor products for AI and data centers (investment to increase production by 20%–50% decided; mass production to begin in 2028), Development and launch of new semiconductor-related products, mainly packaging materials, Construction of the AGC Biologics Yokohama site and commencement of GMP-compliant commercial production in 2027, Long-term manufacturing contract with a major biopharmaceutical company, Closure of the Colorado site for the biopharmaceutical CDMO business, cost reductions and continuation of the sale process
Items this document does not state (11)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue benefited from the weaker yen, higher shipments in Essential Chemicals Southeast Asia, Integrated Chemicals and Electronic Materials, and pricing policies in Integrated Chemicals and European Architectural Glass. In addition, operating profit benefited from improved profitability in Life Science. Factors reducing profit included higher manufacturing costs and increased business-structure improvement expenses.

How to read this page

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Second-Quarter Results Briefing Materials for the Fiscal Year Ending December 2026 | AGC Inc. (5201) timely disclosure | Komori