AI and semiconductor materials drive company-wide profit growth, while Living Environment Infrastructure Materials weighs on results

In FY2027-Q1, consolidated revenue was ¥662,424 million and operating profit was ¥173,798 million, up 5.4% and 4.2%, respectively, year on year. Both revenue and operating profit increased, but profit growth lagged revenue growth, making this a quarter characterized less by a uniform recovery across the company than by significant divergence within the business portfolio.

The Electronic Materials Business led company-wide profit growth, with revenue of ¥279,271 million and operating profit of ¥101,935 million, up 16% and 23%, respectively, year on year. By contrast, the Living Environment Infrastructure Materials Business posted revenue of ¥227,798 million and operating profit of ¥34,824 million, with revenue down 7% and profit down 34%. The Functional Materials Business increased revenue by 7% and profit by 20%, while the Processing, Trading, and Technical Services Business increased revenue by 10% and profit by 8%. Improvement is spreading beyond Electronic Materials, but deterioration in the larger Living Environment Infrastructure Materials Business is restraining overall growth.

In FY2026 as a whole, Electronic Materials Business revenue was ¥1,015.7 billion and profit was ¥344.5 billion, up 9% and 6%, respectively, while Living Environment Infrastructure Materials Business revenue was ¥981.3 billion and profit was ¥164.8 billion, down 6% and 43%. In the next results, it will be necessary to check whether the high growth in Electronic Materials seen in the first quarter continues into the first half and whether the decline in Living Environment Infrastructure Materials profit narrows from 34%. It will be particularly important to see whether the company can disclose not only year-on-year segment amounts, but also the contributions of sales volumes, price revisions, raw-material and energy costs, and product mix.