Consolidated Financial Results and Management Overview for the Third Quarter of the Fiscal Year Ending March 31, 2026
Consolidated Financial Results and Management Overview for the Third Quarter of the Fiscal Year Ending March 31, 2026
We would like to express our sincere gratitude to our shareholders for their continued support of ASAHI YUKIZAI.
Today, we announced our consolidated financial results for the third quarter of the fiscal year ending March 31, 2026. Below is a summary of those results. We appreciate your continued support and look forward to your ongoing confidence in the growth of the ASAHI YUKIZAI Group.
Kazuya Nakano
President & CEO
ASAHI YUKIZAI CORPORATION
1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2026
The domestic economy as a whole continued on a moderate recovery trend during the April-December period. However, a cautious attitude has been taken in capital investment, particularly in the manufacturing sector, due to external factors, including U.S. trade policies and weak domestic demand in the Chinese economy.
Overseas, in the U.S. they remained cautious in corporate capital investment amid persistent uncertainty surrounding trade policy. In China, capital investment continued to lack momentum as the weakness in domestic demand became prolonged.
Under these conditions, the ASAHI YUKIZAI Group implemented measures aimed at pursuing growth based on its medium-term management plan for FY2021-25 (GNT2025), with a focus on overseas markets and semiconductor-related markets.
The business environment surrounding the Group was mixed. In Japan, while semiconductor-related fields remained firm due to progress in certain semiconductor plant construction projects, cautious trends continued in sectors such as nonferrous metals, steel, and chemicals, reflecting labor shortages and uncertainty surrounding the U.S. economy. In China, demand for the installation of equipment associated with capital investment for newly constructed semiconductor plants remained solid. Meanwhile, in the U.S., reviews and postponements of semiconductor plant construction projects continued. As a result, the Group recorded a decline in net sales. In addition, increased fixed costs, including labor costs and depreciation, led to a decrease in profit.
| Net Sales |
59.7 billion yen |
- 5.5% YoY |
| Operating profit |
5.9 billion yen |
-32.6% YoY |
| Ordinary profit |
6.2 billion yen |
-31.2% YoY |
| Net profit attributable to owners of parent |
4.0 billion yen |
-33.7% YoY |
2. Overview of Each Business Segment
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Valve & Piping Systems Division
The Valve & Piping Systems Division has adopted a basic strategy of expanding the resin piping materials market, with thermoplastic valves positioned as its core products. Through product development focused on addressing corrosion issues and enhancing the functionality of thermoplastic piping materials, the Division promotes sales activities aimed at contributing value to its customers.
<Core Products (Thermoplastic Valves, Pipes, Fittings, etc.)>
Sales of core products, including thermoplastic valves, declined year-on-year overall. This was attributable to the delayed recovery of demand in the U.S. and the postponement and review of capital investments in the Chinese electronics industry, as well as the continued slow recovery in demand for capital investment and plant construction in Japan.
<Dymatrix Products>
Dymatrix products for semiconductor manufacturing equipment recorded a year-on-year increase in sales, as growing demand from local manufacturers in China was steadily captured, despite continued inventory adjustments in the domestic market.
<Engineering Business>
Sales from the engineering business utilizing thermoplastic piping materials declined year-on-year due to the absence of large semiconductor-related projects that had been received in the previous fiscal year.
<Profit>
Profit decreased year-on-year due to lower sales, as well as higher fixed costs, including labor costs and depreciation expenses.
| Net Sales |
36.2 billion yen |
- 8.7% YoY |
| Operating profit |
5.1 billion yen |
-29.1% YoY |
-
Resin Division
<Electronic Materials Business>
The Electronic Materials Business pursues low-metal technology to satisfy diverse needs across both legacy and advanced semiconductor markets.
In Japan, sales increased year-on-year, driven by higher demand for photoresist materials for legacy semiconductors such as sensors and power semiconductors, as well as increased demand for materials used in back-end processes.
In China, sales increased year-on-year as the flat-panel display (FPD) sector, including LCD and OLED, remained strong, supported by growing demand for larger television displays.
Construction of the Nantong Electronic Materials Second Plant in China is currently underway, with completion scheduled for March 2027.
<Foundry Materials Business>
The Foundry Materials Business provides products used in the manufacturing of cast parts required for automobiles, construction machinery, and other applications. By proposing products optimized for diverse manufacturing processes both in Japan and overseas, the Business addresses customer challenges, contributing to improvements in manufacturing quality and productivity, as well as to better working environments through odor reduction.
In Japan, sales increased year-on-year as a result of promoting a shift toward environmentally friendly, high value-added products. Overseas, sales also increased year-on-year, driven by the transition to high value-added products that meet customer needs in the Chinese, Indian, and Mexican markets.
<Foaming Material Business>
In the Foaming Materials Business, as products become final products through on-site installation at construction sites, we strive to provide customers with safety and security by improving construction quality. For on-site foaming insulation materials, construction starts remained sluggish.
In civil engineering materials for tunnel excavation, shipment volumes decreased due to delays in the construction schedules of projects already received. As a result, net sales declined year-on-year.
<Profit>
Although sales increased both in Japan and overseas, profit declined year-on-year due to increases in fixed costs, including depreciation and labor costs.
| Net Sales |
17.2 billion yen |
+ 1.4% YoY |
| Operating profit |
0.7 billion yen |
-30.3% YoY |
-
Water Treatment & Natural Resources Development Division
<Water Treatment Business>
The Water Treatment Business engages in the design and construction of water treatment facilities, as well as the development of water reclamation systems that enable the effective use of water resources. The Business also focuses on providing maintenance services that support the stable operation of facilities and equipment, in addition to chemicals for environmental improvement.
Progress in private-sector water treatment construction projects recovered, while government projects advanced steadily. Together with revisions to contract prices for maintenance services and the acceleration of repair works, these factors contributed to an overall year-on-year increase in sales.
<Natural Resources Development Business>
The Natural Resources Development Business contributes to the effective use of resources through drilling work for steam production wells for geothermal power generation, as well as hot spring development projects. During the period, downhole troubles occurred in certain hot spring drilling projects and geothermal drilling projects, which delayed construction progress and resulted in a year-on-year decline in sales.
<Profit>
Profit decreased year-on-year due to lower sales in hot spring and geothermal drilling projects, delays in construction progress, and an increase in fixed costs, including labor costs, across the segment.
| Net Sales |
6.2 billion yen |
- 4.7% YoY |
| Operating profit |
0.2 billion yen |
-50.7% YoY |
