Sumitomo Bakelite raised its full-year forecasts to a ¥50bn operating profit from ¥37.5bn, with revenue now guided to ¥400bn from ¥337bn. The revision, dated October 30, appears in the company's interim results for April to September 2026.
First half: semiconductor materials in front
Group revenue rose 22.7% to ¥192.0bn and business profit climbed 64.1% to ¥28.1bn. Operating profit under IFRS rose 57.9% to ¥26.0bn. Business profit is revenue less cost of sales and selling and administrative costs, so it sits before other income and expenses and is a different line from IFRS operating profit.
The semiconductor-related materials segment grew fastest. Its revenue rose 37.7% to ¥70.6bn and business profit rose 64.1% to ¥16.7bn. Sumitomo Bakelite attributed the growth to demand tied to AI data centres, mainly in power devices. The company also cited memory demand for its photosensitive materials and stronger sales of bonding paste. The other two segments grew more slowly in revenue: high-performance plastics rose 23.8% and quality-of-life products rose 7.4%.
The new full-year guide for net profit attributable to owners is ¥35bn, up from ¥28.5bn. Business profit is guided to ¥55bn, against ¥38bn before. The company left its dividend forecast unchanged at ¥140 a share for the year.
Kyocera chemicals deal closed
On October 30 Sumitomo Bakelite took 100% of a new company that holds part of Kyocera's chemicals business, after signing the contract on January 22. The business makes epoxy molding compounds for chip encapsulation, bonding paste and industrial resins. Sumitomo Bakelite said it aims to raise its presence in ICT and in AI data-centre applications by combining the new company's technology with its own.
The company booked total consideration of ¥28.5bn: ¥30bn in cash less ¥1.5bn of contingent consideration. That adjustment reflects a possible refund from Kyocera depending on a survey of the acquired land. The final price will reflect adjustments under the share transfer agreement. Advisory and other acquisition costs are about ¥400mn.
The valuation of the acquired assets and liabilities was not complete when the results were approved, so the interim report gives no goodwill figure. The interim report does not say whether the revised full-year guidance includes the acquired business.