Kanto Denka Kogyo H1 FY2026 profits hit by fire, but eyes growth

Kanto Denka Kogyo announced its financial results for the first half of fiscal year 2026, with net sales decreasing by 0.4 billion yen to 30.8 billion yen. Operating profit saw a significant drop of 0.9 billion yen to 0.8 billion yen, primarily due to lower profits in precision chemicals and other businesses, despite an increase in basic chemicals profits. Ordinary profit also declined by 1.4 billion yen to 0.9 billion yen, while profit attributable to owners of parent fell by 1.3 billion yen to 0.1 billion yen, impacted by lower ordinary profit and disaster-related losses.

The Shibukawa Plant fire on August 7, 2025, significantly affected performance, causing an estimated total impact of 1.58 billion yen (0.64 billion yen on operating profit and 0.94 billion yen on extraordinary loss) for FY2025. While one nitrogen trifluoride production line resumed operations on September 17, 2025, the damaged line is expected to restart in January 2026. The company’s full-year FY2025 forecasts have been adjusted, with net sales now projected at 64.5 billion yen, and operating profit at 3.3 billion yen, down from earlier estimates.

Despite these challenges, Kanto Denka Kogyo is strategically focusing on growth. The company anticipates the semiconductor etching and cleaning gas market to reach 360 billion yen by 2030, targeting a CAGR of 11.0% and a market share of at least 25%. In battery materials, the U.S. and Japanese markets are expected to grow to 51,000 tons by 2030, with Kanto Denka aiming for a 50% target share and a CAGR exceeding 25% from 2026-2030, driven by a shift away from China dependence in the supply chain.