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Earnings presentation5201AGC Inc.Construction and Materials

Briefing Materials for the Third Quarter of the Fiscal Year Ending December 2026

For the cumulative third quarter of the fiscal year ending December 2026, revenue increased due to the weaker yen and higher shipments of chemicals and electronic materials, while operating profit declined due to higher raw material, fuel and manufacturing costs. The full-year forecast was revised downward due to higher costs in Automotive and other businesses and shortfalls in volumes in Architectural Glass and Life Science.

Worth reading
78Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-19
¥100 million (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationQ3 FY202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,626 hundred million+9.9%
Operating profit¥929 hundred million-2.0%
Net income¥334 100 million -15.4%net income attributable to owners of the parent
Operating profit margin5.6 %-0.7%
Results for the three months of the current quarter
Net Sales
¥5,620 hundred million
Operating profit
¥282 hundred million
Full-year earnings forecast
Net Sales
¥22,000 hundred million
Operating profit
¥1,200 hundred million
Business profit
¥900 hundred million
Pretax profit
¥820 hundred million
Profit attributable to owners of the parent
¥400 hundred million
Dividend per share
¥210
Operating profit margin
5.5 %
ROE
2.7 %
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。
Consolidated total
Net Sales74 %
Operating profit77 %
Architectural Glass
Net Sales73 %
Operating profit86 %
Automotive
Net Sales76 %
Operating profit91 %
Electronics
Net Sales75 %
Operating profit74 %
Chemicals
Net Sales73 %
Operating profit80 %
Life Science
Net Sales72 %
Ceramics and Other
Net Sales65 %
Operating profit74 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit and other items were revised downward because Automotive, Essential Chemicals Southeast Asia, Architectural Glass and Life Science are expected to underperform assumptions.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit YoYEffect of the weaker yen, higher shipments of chemicals and electronic materials, price increases, higher raw material and fuel prices, and higher manufacturing costs
Other income and expenses
Architectural Glass business structural improvement costs-52
Gain on sale of shares in automotive affiliates105
Chemical Products business structural improvement costs-101
Loss on sale of life sciences fixed assets-104
Change in full-year operating profit from the initial forecast
Essential Chemicals Southeast Asia-10
Automotive-150
Architectural Glass-90
Life Science-80
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
1USD¥160.0
1EUR¥180.0
Dubai crude oil100.0 USD/BBL
Foreign exchange sensitivityA 1% depreciation of the yen increases operating profit by ¥500 million.
Crude oil price sensitivityA US$1 increase reduces operating profit by ¥260 million.
New initiatives
  • Structural improvements, including workforce rightsizing in Europe
  • Sale of the European automotive aftermarket glass installation business
  • End of production at the UK site of Integrated Chemicals
  • Sale of the Colorado site of the biopharmaceutical CDMO business
  • Strengthening Automotive's manufacturing and technology management structure
  • Capacity expansion for electronic materials, fluorine-related products and biopharmaceutical CDMO operations
Key KPIsA metric the company considers important as a management benchmark.
  • D/E ratio0.4 times
  • ROCE_Architectural Glass5.2 %
  • ROCE_Automotive8.5 %
  • ROCE_Electronics8.2 %
  • ROCE_Chemicals7 %
  • ROCE_Life Science-9.3 %
  • ROCE_Ceramics and Other10.4 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Year-on-year changes in volume and price or volume are provided for architectural glass, automobile production and display panel demand.
Segment results
Architectural Glass
Net Sales3,372
Operating profit94
Year-on-Year Change in Revenue (%)5.1
Operating profit year-on-year_pct-6
Automotive
Net Sales4,176
Operating profit154
Year-on-Year Change in Revenue (%)8.3
Operating profit year-on-year_pct-34.2
Electronics
Net Sales2,708
Operating profit339
Year-on-Year Change in Revenue (%)4.3
Operating profit year-on-year_pct-5.8
Chemicals
Net Sales5,157
Operating profit437
Year-on-Year Change in Revenue (%)19.6
Operating profit year-on-year_pct10.3
Life Science
Net Sales1,002
Operating profit-126
Year-on-Year Change in Revenue (%)4.3
Operating profit year-on-year_pct22.2
Ceramics and Other
Net Sales389
Operating profit30
Year-on-Year Change in Revenue (%)-7.2
Operating profit year-on-year_pct57.9
Financial targets
Full-year forecast ROE2.7 %
D/E ratio at end-September 20260.4 %
D/E unittimes
Number of employees
The European automotive aftermarket glass installation business has just over 300 employees, while the UK site has just over 200.
Capital expenditures
¥1,398 100 million cumulative January–third quarter 2026
Full-year forecast
¥2,050 hundred million
Annual Dividend
Annual
¥210
Payout ratio
58 %
DOE3
DOE_unit%
Total payout ratio58
Acquisition of treasury shares
Undecided for 2026. No details have been disclosed regarding the purchase amount, number of shares or period.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredQ3 FY2026
Net Sales¥16,626 hundred million (YoY +9.9%)
Operating profit¥929 hundred million (YoY -2.0%)
Net income¥334 100 million (net income attributable to owners of the parent) (YoY -15.4%)
Operating profit margin5.6 % (YoY -0.7%)
Results for the three months of the current quarterNet Sales ¥5,620 hundred million / Operating profit ¥282 hundred million
Full-year earnings forecastNet Sales ¥22,000 hundred million / Operating profit ¥1,200 hundred million / Business profit ¥900 hundred million / Pretax profit ¥820 hundred million / Profit attributable to owners of the parent ¥400 hundred million / Dividend per share ¥210 / Operating profit margin 5.5 % / ROE 2.7 %
Progress against full-year forecastConsolidated total Net Sales 74 % / Operating profit 77 % / Architectural Glass Net Sales 73 % / Operating profit 86 % / Automotive Net Sales 76 % / Operating profit 91 % / Electronics Net Sales 75 % / Operating profit 74 % / Chemicals Net Sales 73 % / Operating profit 80 % / Life Science Net Sales 72 % / Ceramics and Other Net Sales 65 % / Operating profit 74 %
Self-assessment against the planOperating profit and other items were revised downward because Automotive, Essential Chemicals Southeast Asia, Architectural Glass and Life Science are expected to underperform assumptions.
Segment resultsArchitectural Glass Net Sales 3,372 / Operating profit 94 / Year-on-Year Change in Revenue (%) 5.1 / Operating profit year-on-year_pct -6 / Automotive Net Sales 4,176 / Operating profit 154 / Year-on-Year Change in Revenue (%) 8.3 / Operating profit year-on-year_pct -34.2 / Electronics Net Sales 2,708 / Operating profit 339 / Year-on-Year Change in Revenue (%) 4.3 / Operating profit year-on-year_pct -5.8 / Chemicals Net Sales 5,157 / Operating profit 437 / Year-on-Year Change in Revenue (%) 19.6 / Operating profit year-on-year_pct 10.3 / Life Science Net Sales 1,002 / Operating profit -126 / Year-on-Year Change in Revenue (%) 4.3 / Operating profit year-on-year_pct 22.2 / Ceramics and Other Net Sales 389 / Operating profit 30 / Year-on-Year Change in Revenue (%) -7.2 / Operating profit year-on-year_pct 57.9
Breakdown of Factors Affecting the ChangeOperating profit YoY Effect of the weaker yen, higher shipments of chemicals and electronic materials, price increases, higher raw material and fuel prices, and higher manufacturing costs / Other income and expenses Architectural Glass business structural improvement costs -52 / Gain on sale of shares in automotive affiliates 105 / Chemical Products business structural improvement costs -101 / Loss on sale of life sciences fixed assets -104 / Change in full-year operating profit from the initial forecast Essential Chemicals Southeast Asia -10 / Automotive -150 / Architectural Glass -90 / Life Science -80
Key KPIsIndicator name D/E ratio / Value 0.4 times / Year on year against the same period last year Not disclosed, Indicator name ROCE_Architectural Glass / Value 5.2 % / Year on year against the same period last year Not disclosed, Indicator name ROCE_Automotive / Value 8.5 % / Year on year against the same period last year Not disclosed, Indicator name ROCE_Electronics / Value 8.2 % / Year on year against the same period last year Not disclosed, Indicator name ROCE_Chemicals / Value 7 % / Year on year against the same period last year Not disclosed, Indicator name ROCE_Life Science / Value -9.3 % / Year on year against the same period last year Not disclosed, Indicator name ROCE_Ceramics and Other / Value 10.4 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsYear-on-year changes in volume and price or volume are provided for architectural glass, automobile production and display panel demand.
Number of employeesThe European automotive aftermarket glass installation business has just over 300 employees, while the UK site has just over 200.
Assumptions Underlying the Business Outlook1USD ¥160.0 / 1EUR ¥180.0 / Dubai crude oil 100.0 USD/BBL / Foreign exchange sensitivity A 1% depreciation of the yen increases operating profit by ¥500 million. / Crude oil price sensitivity A US$1 increase reduces operating profit by ¥260 million.
Financial targetsFull-year forecast ROE 2.7 % / D/E ratio at end-September 2026 0.4 % / D/E unit times
Annual DividendAnnual ¥210 / Interim and year-end Not disclosed
Payout ratio58 %
Acquisition of treasury sharesUndecided for 2026. No details have been disclosed regarding the purchase amount, number of shares or period.
Capital expenditures¥1,398 100 million (cumulative January–third quarter 2026)
New initiativesStructural improvements, including workforce rightsizing in Europe, Sale of the European automotive aftermarket glass installation business, End of production at the UK site of Integrated Chemicals, Sale of the Colorado site of the biopharmaceutical CDMO business, Strengthening Automotive's manufacturing and technology management structure, Capacity expansion for electronic materials, fluorine-related products and biopharmaceutical CDMO operations
Items this document does not state (9)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsOrders received and order backlogMarket Size / ShareKey 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 growth was driven by the effect of the weaker yen, higher shipments of chemicals and electronic materials, and price increases in Integrated Chemicals and Architectural Glass Europe. Factors behind the decline in profit were higher raw material and fuel prices, deteriorating manufacturing costs, and lower productivity in Automotive Europe and North America and other businesses. The full-year forecast was revised downward due to higher costs in Automotive and Essential Chemicals Southeast Asia, volume shortfalls in Architectural Glass and Life Science, and higher other expenses.

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