AGC cut its profit forecast for the year to December 2026 on 5 November, but not its revenue forecast. Operating profit is now guided at ¥120bn, down 20.0% from the ¥150bn set on 6 February. Profit attributable to owners of the parent falls 48.1% to ¥40bn from ¥77bn, and basic earnings per share to ¥188.55 from ¥363.12. Revenue stays at ¥2.2tn.
| Measure | 6 Feb forecast | 5 Nov forecast | Change |
|---|---|---|---|
| Revenue | ¥2.2tn | ¥2.2tn | Unchanged |
| Operating profit | ¥150.0bn | ¥120.0bn | -20.0% |
| Pretax profit | ¥124.0bn | ¥82.0bn | -33.9% |
| Net profit | ¥90.0bn | ¥49.0bn | -45.6% |
| Attributable net profit | ¥77.0bn | ¥40.0bn | -48.1% |
| Basic EPS | ¥363.12 | ¥188.55 | -48.1% |
Where the operating shortfall sits
AGC's revision notice names four causes for the lower operating profit: worse manufacturing costs in automotive in North America and Europe, higher raw material and fuel prices in Essential Chemicals Southeast Asia, and volume shortfalls in architectural glass in Europe and Asia and in biopharma contract development and manufacturing (CDMO).
The results briefing puts figures on each segment against the February forecast. Automotive carries the largest cut, to ¥17.0bn from ¥32.0bn, which AGC ties to manufacturing costs in North America and Europe. In Europe, productivity worsened as high-function products rose in the mix. In North America, the briefing cites operational problems.
| Segment | 6 Feb forecast | 5 Nov forecast | Change |
|---|---|---|---|
| Automotive | ¥32.0bn | ¥17.0bn | -¥15.0bn |
| Architectural glass | ¥20.0bn | ¥11.0bn | -¥9.0bn |
| Life sciences | -¥5.0bn | -¥13.0bn | -¥8.0bn |
| Chemicals | ¥56.0bn | ¥55.0bn | -¥1.0bn |
Architectural glass is guided at ¥11.0bn against ¥20.0bn. The briefing lists a weak economy in Europe and Asia that left sales volumes short, higher energy costs in Europe and unplanned equipment repairs in Japan. The life sciences segment now expects a ¥13.0bn operating loss against ¥5.0bn. AGC cites delayed production starts on new contracts and extra cost from the delayed Colorado sale.
Demand versus disposal
The Colorado sale hits the lower profit lines separately. The revision notice says AGC booked a fixed-asset sale loss it had not originally expected on selling the biopharma CDMO's Colorado site, which pulls down pretax profit, net profit and attributable profit beyond the operating shortfall. The nine-month results note puts the loss on the Colorado assets owned by AGC Biologics, Inc. at ¥10.4bn. The briefing says the sale excludes part of the Longmont land.
The nine-month results also include ¥10.1bn of restructuring cost tied to the decision to end production at AGC Chemicals Europe's UK site. The revision notice does not cite that cost as a reason for the cut.
Why unchanged revenue is not reassurance
A flat revenue forecast does not show steady demand. Revenue for the first nine months rose 10.0% to ¥1.66tn, and the briefing attributes ¥91.1bn of the ¥150.5bn increase to exchange rates, with the yen weaker against the dollar and euro than a year earlier. Operating profit over the same period slipped 2.1% to ¥92.9bn.
The dividend forecast is unchanged at ¥210 for the year, the same as the prior year. Management says it may review shareholder returns from 2027 depending on recovery.