On February 5, Tosoh discolsed its Consolidated Financial Results for the Nine Months Ended December 31, 2025

The Company's net sales decreased ¥39.6 billion (5.0%) year-on-year to ¥756.1 billion (US$5.1 billion), over the first nine months of the Company's 2026 fiscal year which extends from April 1, 2025, to March 31, 2026. This decrease was attributable to lower selling prices reflecting the drop in naphtha prices and overseas market conditions for major products, as well as a decrease in shipment volume caused by reduced production volume associated with extended scheduled maintenance at the Nanyo Complex and sluggish demand for the Petrochemical Group's products.

The Company's consolidated operating income decreased ¥4.7 billion (6.3%) year-on-year to ¥69.9 billion (US$470.0 million), due to unfavorable inventory fluctuations and increased fixed costs, despite sales growth in the Engineering Group and improved terms of trade backed by lower prices in raw materials and fuels, including naphtha and coal.

Ordinary income decreased ¥5.6 billion (6.7%) year-on-year to ¥77.0 billion (US$517.6 million). Income attributable to owners of parent decreased ¥23.9 billion (49.2%) year-on-year to ¥24.6 billion (US$165.6 million). This was due to the recognition of an impairment loss on fixed assets at Tosoh SMD, Inc., the Company’s consolidated subsidiary which manufactures and sells sputtering targets in the U.S, in the second quarter.

Chlor-alkali

Chlor-alkali Group net sales decreased ¥25.0 billion (9.0%) year-on-year to ¥253.8 billion (US$1.7 billion). Operating income decreased ¥7.2 billion year-on-year to ¥0.1 billion (US$0.7 million). This was due to a decrease in shipments, unfavorable inventory fluctuations, and increased fixed costs, despite improved terms of trade for caustic soda and methylene diphenyl diisocyanate (MDI) backed by lower prices in raw materials and fuels.

Caustic soda shipments decreased due to lower production volume from extended scheduled maintenance at the Nanyo Complex and overseas market conditions also declined. Vinyl chloride monomer (VCM) shipments also decreased due to lower production volume from extended scheduled maintenance at the Nanyo Complex. Polyvinyl chloride (PVC) resin overseas shipments increased. Moreover, selling prices of VCM and PVC for overseas markets declined due to the decline in overseas market conditions.

Cement shipments decreased due to weak demand, but domestic selling prices increased.

Methylene diphenyl diisocyanate (MDI) shipments decreased due to lower production volume from extended scheduled maintenance at the Nanyo Complex. Selling prices for MDI declined due to the decline in overseas market conditions and the impact of foreign exchange rates. Selling prices for hexamethylene diisocyanate (HDI) hardeners declined and shipments decreased due to sluggish market conditions.

Source: Tosoh