Shin-Etsu Raises First-Half Operating Income 15.6% to ¥385,918 Million
Key Facts
Shin-Etsu Chemical announced on October 27 results for the first half ended September 30, 2026, reporting sales of ¥1,420,684 million, up 10.6% year over year. Operating income rose 15.6% to ¥385,918 million, while net income attributable to owners of the parent increased 11.3% to ¥286,939 million. The results show growth in sales and earnings compared with the same period a year earlier. Diluted earnings per share were ¥155.45, versus ¥136.56 in the previous first half. The announcement was part of the company's official results for the first half of its fiscal year ending in March 2027.
Electronics materials was the leading growth driver, with sales rising 16% to ¥577.7 billion and operating income increasing 28% to ¥218.9 billion during April–September 2026. The company attributed the segment's improvement to substantial growth in the semiconductor market, driven by AI-related investment in data centers. It said those investments had reached what it described as a "historic" level. It added that tight supply of some products contributed to performance, along with higher sales following supply coordination and price revisions. The figures reflect accelerating revenue and profitability in the segment compared with the same period a year earlier.
By contrast, infrastructure materials recorded sales of ¥522.1 billion, up 4%, but operating income fell 16% to ¥86.2 billion. The company said PVC market conditions weakened in the second half of May as inventories accumulated and demand slowed in Asia and surrounding regions. It said these pressures came despite a price increase implemented in July. The divergence between sales growth and lower operating income puts the segment on a different trajectory from electronics materials. In the fiscal year ended March 2026, segment income had fallen 43% to ¥164.8 billion, while electronics materials income rose 6% to ¥344.5 billion.
Functional materials posted growth in sales and operating income, with sales rising 11% to ¥245.6 billion and operating income climbing 31% to ¥63.2 billion. The company attributed the improvement in profitability to higher sales of high-value-added products, saying that expanding this product mix "led to improved profitability." In processing and specialized services, sales increased 12% to ¥75.1 billion and operating income rose 28% to ¥17.4 billion. The company linked sales growth to strong demand for semiconductor-related containers. Growth in the first half thus extended to other segments alongside strength in the electronics materials business.
Shin-Etsu left its forecast for the fiscal year ending March 31, 2027, unchanged, projecting sales of ¥2,700,000 million and operating income of ¥700,000 million. It also forecast net income attributable to owners of the parent of ¥525,000 million. These annual targets follow sales of ¥2,573,969 million in the fiscal year ended March 2026, up 0.5%, while operating income declined 14.4% and net income fell 11.2%. In that year, the company said AI-related demand remained strong, while excess supply and exports from China continued, and it expected the surplus to persist for a considerable period. Against this backdrop, semiconductor demand strength and pressure in the PVC market rank among the main segment factors the company presented in its current results.
The company confirmed an interim dividend of ¥78 per share for the fiscal year ending March 31, 2027, comprising an ordinary ¥58 and a commemorative ¥20 marking the 100th anniversary of its founding. It kept its expected annual dividend at ¥136 per share, as announced on September 15. The company had set September 28 as the last trading day with entitlement to the dividend and September 30 as the record date. Looking ahead, it scheduled November 13, 2026, for filing its semiannual securities report. It also set November 18 as the dividend payment date.