Central Glass Co., Ltd. Overview
Central Glass is a mid-sized Japanese fluorine-chemistry and glass group that has spent five years turning itself from a capital-heavy flat- and automotive-glass maker into what it calls a "Specialty Materials Company." Its main technical asset is integrated fluorine chemistry at the Ube complex. Fluorspar is converted into anhydrous hydrogen fluoride (HF), and the HF goes into ultra-high-purity semiconductor process gases, lithium-ion battery electrolytes, low-GWP HFO refrigerants and blowing agents, pharmaceutical intermediates and fertilizers. Since selling its US and European automotive glass operations in 2022, it has reported about ¥144 billion in annual sales. In FY2026, Electronic Materials was the highest-margin segment (15.2% operating margin, ¥26.2 billion sales). Energy Materials (electrolytes) is the main drag on earnings, and Glass is now mostly a domestic business that generates cash. Management's VISION 2030 targets ¥20 billion operating profit and ROE of at least 10%. The balance sheet is conservative, with a 62.5% equity ratio and net debt of about ¥7.8 billion, and the dividend floor is ¥170 per share. The shares trade below book value.
What the company does
Central Glass makes and sells fluorine-based specialty chemicals and glass products. Since FY2026 it has reported four segments plus "Other": Electronic Materials, Energy Materials, Life & Healthcare, and Glass. Its securities report for FY2026 describes the group as working in these four fields. Each is defined by its main products: high-purity gases for semiconductor processing; electrolytes for lithium-ion batteries; medical chemicals, material chemicals and fertilizers; and architectural glass, automotive glass and glass fiber.
Company's own description
In its 2025–2030 medium-term plan and its Integrated Report, the company describes itself as aiming to "become a Specialty Materials Company that contributes to a sustainable society" through original materials and technologies. It splits its portfolio into two groups:
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Specialty products, which it plans to grow: etching and cleaning gases, SiC wafers and next-generation display materials (semiconductors and power semiconductors); electrolytes and next-generation battery materials (batteries); pharmaceutical products such as inhalation anaesthetics (life science); and low-GWP materials, controlled-release fertilizers, PFAS-free materials and high-value glass (living and environment).
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Essential products, which it plans to make more profitable: HFOs and functional materials, glass fiber, architectural glass, automotive glass and fertilizers.
Business and revenue model
Nearly all revenue comes from selling manufactured products. There is no material service, subscription or licensing income. Pricing works differently in each business:
Electronic Materials: Customers qualify each gas on their own fab lines, which keeps them with a supplier for years. Volumes follow wafer starts, especially at advanced logic and memory fabs. Since FY2026, prices have been raised to recover raw material costs (tungsten and fluorspar), and segment margin reached 28.5% in Q1 FY2027.
Energy Materials: Electrolyte is sold under supply agreements with cell makers. Prices are usually linked to the cost of lithium hexafluorophosphate (LiPF6) and solvents, but pass-through lags, which hurt margins in FY2026 and Q1 FY2027.
Life & Healthcare: This mixes contract and catalogue sales of pharmaceutical intermediates and active ingredients, sales of HFO blowing agents and solvents to polyurethane and precision-cleaning customers, and domestic fertilizer sales through agricultural channels.
Glass: Float and processed architectural glass is sold through Central Glass Sales. Automotive glass is sold through Central Sanglass, a 65:35 joint venture with Saint-Gobain. Glass fiber is sold to industrial and automotive customers. Pricing follows energy and soda-ash costs, and a price increase takes effect on 1 December 2026.
Value-chain position
Central Glass is unusually backward-integrated for a Japanese specialty-gas supplier. It produces HF from fluorspar at Ube, where an HF plant has operated since 1974, and purifies it to semiconductor grade itself. In September 2026, METI certified a plan for a new anhydrous HF plant at Ube with a subsidy of up to ¥17.6 billion, which makes HF a nationally supported strategic material. Downstream, the company sells directly to semiconductor device makers (foundries and memory makers in Taiwan, Korea, Japan and China), battery cell makers in Asia, Europe and North America, pharmaceutical companies, and construction and automotive customers in Japan.
Customer types and end-markets
| End-market | Segment | Customer type | Demand driver |
|---|---|---|---|
| Semiconductors (logic, DRAM, NAND, power devices) | Electronic Materials | Wafer fabs, equipment makers | AI-driven advanced-node and high-capacity memory build-outs |
| Electric vehicles and energy storage | Energy Materials | Lithium-ion cell makers (China, Korea, Japan, EU, North America) | EV adoption, ESS, IRA localisation |
| Pharmaceuticals and medical | Life & Healthcare | Drug makers, CDMOs | Fluorinated API demand, inhalation anaesthetics |
| Construction insulation and cleaning | Life & Healthcare | Urethane foam makers, precision-cleaning users | Low-GWP regulation (Kigali/F-gas phase-downs) |
| Agriculture | Life & Healthcare | Japanese agricultural co-ops and distributors | Domestic crop demand, controlled-release fertilizer |
| Housing and construction | Glass | Glass processors, builders | Japanese housing starts, energy-efficient glazing |
| Automotive | Glass | Japanese OEMs, aftermarket | Japanese vehicle production |
| Industrial composites and acoustics | Glass (fiber) | Resin compounders, auto acoustic-parts makers | Engineering plastics, vehicle noise insulation |
Semiconductors (logic, DRAM, NAND, power devices): Segment: Electronic Materials; Customer type: Wafer fabs, equipment makers; Demand driver: AI-driven advanced-node and high-capacity memory build-outs
Electric vehicles and energy storage: Segment: Energy Materials; Customer type: Lithium-ion cell makers (China, Korea, Japan, EU, North America); Demand driver: EV adoption, ESS, IRA localisation
Pharmaceuticals and medical: Segment: Life & Healthcare; Customer type: Drug makers, CDMOs; Demand driver: Fluorinated API demand, inhalation anaesthetics
Construction insulation and cleaning: Segment: Life & Healthcare; Customer type: Urethane foam makers, precision-cleaning users; Demand driver: Low-GWP regulation (Kigali/F-gas phase-downs)
Agriculture: Segment: Life & Healthcare; Customer type: Japanese agricultural co-ops and distributors; Demand driver: Domestic crop demand, controlled-release fertilizer
Housing and construction: Segment: Glass; Customer type: Glass processors, builders; Demand driver: Japanese housing starts, energy-efficient glazing
Automotive: Segment: Glass; Customer type: Japanese OEMs, aftermarket; Demand driver: Japanese vehicle production
Industrial composites and acoustics: Segment: Glass (fiber); Customer type: Resin compounders, auto acoustic-parts makers; Demand driver: Engineering plastics, vehicle noise insulation
Independent characterisation
Central Glass now works mainly as a fluorine-chemistry platform with a glass business attached. In FY2026 the three chemical segments made up about 55% of sales and nearly all of operating profit before the Energy Materials loss. Earnings depend increasingly on one niche: ultra-high-purity fluorinated gases for advanced semiconductor fabs. The company has real technical strengths there, including integration from fluorspar, cryogenic-etch-grade HF and a WF6 joint venture in China, but it is far smaller than the Korean and global industrial-gas majors. Electrolyte was meant to be the second growth leg. It has instead become a structural loss-maker under Chinese price competition, and how far it can recover is the biggest swing factor in the medium-term plan.
Strategy
Purpose and VISION 2030
In May 2024 the company replaced its "Basic Policy" with a Purpose statement and set out VISION 2030. The goal is to "become a Specialty Materials Company that contributes to a sustainable society." The numerical targets are a record ¥20 billion operating profit and ROE of at least 10% in the year ending March 2031. The roadmap is to roughly double operating profit from specialty products while making essential products more profitable. Specialty products are grouped in four fields: semiconductors and power semiconductors; batteries; life science; and living, environment and food.
2025–2030 Medium-Term Management Plan, "Be a Specialty Materials Company" (announced 14 May 2025)
The plan has two phases: Phase 1 covers the years ending March 2026 to March 2028, and Phase 2 the years ending March 2029 to March 2031. Its main themes are:
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Grow specialty products, with priority investment in electronic materials (semiconductor gases, SiC wafers, power-semiconductor bonding materials, PFAS-free resists), new products in life science, and next-generation battery materials.
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Strengthen essential products by improving profitability and adding value in HFOs, glass fiber, architectural and automotive glass, and fertilizers.
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Recover and grow Energy Materials, targeting segment operating profit of ¥3.0 billion in the year ending March 2028 and ¥5.0 billion in the year ending March 2031. The plan assumes a full recovery in EV demand from 2028.
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Allocate capital by growth and ROIC. Each business is placed on a growth × ROIC matrix and run with ROIC targets.
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Base the plan on ESG management: human-capital management (DE&I, engagement, health), climate and circular-economy action, and digital transformation.
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Change segment reporting from two to four segments plus Other, to give more information.
Financial targets.
Operating income (JPY 100M): Year ending Mar 2028: 130; Year ending Mar 2031: 200
ROE (%): Year ending Mar 2028: 8.7; Year ending Mar 2031: 10
ROIC (%): Year ending Mar 2028: 6.1; Year ending Mar 2031: 7.0
Annual dividend per share (JPY): Year ending Mar 2028: 170; Year ending Mar 2031: under review
Capital allocation in Phase 1. Total investment is planned at about ¥50.5 billion, including about ¥22 billion of capital spending on specialty products. R&D spending of about ¥21 billion is planned over the three years. Shareholder returns are about ¥12.6 billion, based on a minimum dividend of ¥170 per share. No buybacks are planned. M&A in growth businesses is allowed.
Strategic initiatives in the last 24 months
| Date | Initiative | Type |
|---|---|---|
| Jun 2024 | North American electrolyte toll manufacturing with Duksan Electera (up to 60,000 t/yr) to serve IRA-qualified cell makers without building a plant | Capacity partnership |
| Jan 2025 | Contract with Foosung Co. for a Korean semiconductor specialty-gas joint venture to localise supply for Korean fabs | Joint venture |
| May 2025 | Launch of the 2025–2030 medium-term plan and new segment structure | Strategy |
| Jun 2025 | Move to an Audit & Supervisory Committee structure | Governance |
| Jul–Dec 2025 | Sale of Apollo Scientific (UK reagents) to Shanghai Titan Scientific for about £5.7–5.8 million; extraordinary loss of about ¥1.3 billion | Portfolio pruning |
| 2025–2026 | More than double ultra-high-purity HF gas capacity at Ube for cryogenic etching, starting in 2026 | Capacity expansion |
| FY2026 | Rationalisation of Energy Materials production lines; continued development of PFAS-free ArF resist materials and SiC | Cost and R&D |
| Jun 2026 | Public reassurance on WF6 supply; diversifying tungsten sources away from China and asking customers to accept price increases | Supply-chain resilience |
| Sep 2026 | METI certifies the anhydrous HF supply plan at Ube (subsidy up to about ¥17.6 billion) under the Economic Security Promotion Act | Strategic capacity |
| Sep 2026 | Architectural glass price increases effective 1 December 2026 | Pricing |
| Jun 2026 | New Foundation Business Promotion Office set up to oversee essential businesses | Organisation |
Jun 2024: Initiative: North American electrolyte toll manufacturing with Duksan Electera (up to 60,000 t/yr) to serve IRA-qualified cell makers without building a plant; Type: Capacity partnership
Jan 2025: Initiative: Contract with Foosung Co. for a Korean semiconductor specialty-gas joint venture to localise supply for Korean fabs; Type: Joint venture
May 2025: Initiative: Launch of the 2025–2030 medium-term plan and new segment structure; Type: Strategy
Jun 2025: Initiative: Move to an Audit & Supervisory Committee structure; Type: Governance
Jul–Dec 2025: Initiative: Sale of Apollo Scientific (UK reagents) to Shanghai Titan Scientific for about £5.7–5.8 million; extraordinary loss of about ¥1.3 billion; Type: Portfolio pruning
2025–2026: Initiative: More than double ultra-high-purity HF gas capacity at Ube for cryogenic etching, starting in 2026; Type: Capacity expansion
FY2026: Initiative: Rationalisation of Energy Materials production lines; continued development of PFAS-free ArF resist materials and SiC; Type: Cost and R&D
Jun 2026: Initiative: Public reassurance on WF6 supply; diversifying tungsten sources away from China and asking customers to accept price increases; Type: Supply-chain resilience
Sep 2026: Initiative: METI certifies the anhydrous HF supply plan at Ube (subsidy up to about ¥17.6 billion) under the Economic Security Promotion Act; Type: Strategic capacity
Sep 2026: Initiative: Architectural glass price increases effective 1 December 2026; Type: Pricing
Jun 2026: Initiative: New Foundation Business Promotion Office set up to oversee essential businesses; Type: Organisation
Sustainability commitments
The company targets a 60% cut in Scope 1 and 2 greenhouse-gas emissions by the year ending March 2031 against FY2014 (the year ending March 2014), and net-zero emissions by 2050. Product-level commitments include low-GWP HFO blowing agents and solvents, fluorine cleaning gases that replace high-GWP perfluorinated compounds, and PFAS-free materials.
Medium-term guidance
The company's FY2027 guidance, revised in August 2026, is net sales of ¥167.5 billion, operating income of ¥11.0 billion, ordinary income of ¥11.3 billion and net income of ¥8.0 billion (EPS about ¥323). That would put operating income about ¥2 billion below the ¥13 billion target for the year ending March 2028 with a year to go. Closing the gap depends mostly on Energy Materials moving from a ¥2.7 billion loss to a ¥3.0 billion profit.
Products & Services
Electronic Materials
| Product | Description and use | Target customer | Notes |
|---|---|---|---|
| Ultra-high-purity anhydrous hydrogen fluoride gas (HF) | Etching gas made from fluorspar through HF purification; grades developed for cryogenic etching of high-aspect-ratio memory structures | NAND/DRAM makers, etch-tool makers | Capacity at Ube to more than double from 2026; adopted for volume production by several large chipmakers moving to cryo-etch; joint development with a major equipment maker since 2024 |
| High-purity fluorine gas mixtures (F2/N2) | Chamber-cleaning gas for CVD tools; alternative to high-GWP cleaning gases | Foundries, especially in Taiwan | Made at Ube since 1988; local production in Kaohsiung through Taiwan Central Glass |
| Tungsten hexafluoride (WF6) | Deposition gas for tungsten contacts and interconnects | Logic and memory fabs | Made in Japan and through the Quzhou joint venture with Juhua's Zhejiang Bora (Central Glass 49%; 400 t/yr equivalent); tungsten sourcing from China under pressure from export controls |
| Other fluorinated specialty gases | Etching and cleaning gases | Fabs in Japan, Korea, Taiwan, China, Singapore | Sold through Chi Chia (Taiwan), Giga Gas & Electronic Materials (Singapore) and trading subsidiaries in Shanghai and Zhejiang |
| SiC wafers | Silicon-carbide substrates for power semiconductors | Power-device makers | Specialty growth item under VISION 2030 |
| Power-semiconductor bonding materials | Die-attach and joining materials | Power-module makers | Development and early commercialisation |
| PFAS-free ArF resist materials | Fluorine-chemistry-based photoresist components that avoid PFAS substances | Resist formulators, lithography users | Main R&D theme because of PFAS regulation |
| Next-generation display materials | Specialty materials for displays | Panel makers | Named in VISION 2030 |
Energy Materials
| Product | Description | Production base | Notes |
|---|---|---|---|
| Lithium-ion battery electrolyte | LiPF6-based liquid electrolytes for EV and stationary cells | Japan, Korea (Jcel, 65%), China (Zhejiang Zhongniao Kangpeng, 60%), Czech Republic (Central Glass Czech) | Global supply; Chinese customers grew in FY2026 while North American and Korean volumes fell |
| North American electrolyte (tolled) | Electrolyte made under contract by Duksan Electera America in Shelbyville, Tennessee | Duksan Electera America | Up to 60,000 t/yr; Duksan is Central Glass's only North American contract manufacturer |
| LiPF6 and electrolyte raw materials | Upstream salt through equity-method affiliate | Jiangxi Tinci Zhongxiao New Materials (35%) | Hedge on key salt input |
| Next-generation battery materials | Post-lithium-ion and advanced electrolytes | Ube R&D | Part of the battery-field specialty strategy |
Life & Healthcare
| Product line | Products | Customers | Notes |
|---|---|---|---|
| Medical chemicals | Fluorinated APIs and intermediates, including inhalation anaesthetics; contract manufacturing | Pharmaceutical companies | Ube pharmaceutical-ingredient plant since 1994; German CDMO sold to Evotec (2022) and UK reagent business Apollo Scientific sold to Shanghai Titan (2025) |
| Material chemicals: HFO blowing agents | HFO-1233zd(E) for rigid polyurethane foam insulation; HFC-245fa | Insulation foam makers | Low-GWP replacements for HFCs |
| Material chemicals: HFO solvents | CELEFIN 1233Z (HFO-1233zd(Z)) for precision cleaning | Electronics, precision-parts makers | Capacity added under the previous plan |
| Material chemicals: other HFOs | ZEM-SCREEN (HFO-1234ze(E)) | Industrial users | Low-GWP portfolio |
| Fluoro-functional chemicals | Fluororesins and organic fluorides | Industrial | Ube multipurpose plants |
| Fertilizers | Compound and controlled-release (coated) fertilizers | Japanese agriculture | Through Central Chemical Co.; low-margin water-treatment coagulant (polyaluminium chloride) business exited |
Glass
| Product line | Products | Customers | Notes |
|---|---|---|---|
| Architectural glass | Float glass, processed glass, energy-saving low-E and security glazing | Processors, builders, housing makers | Made by Central Glass Products, sold by Central Glass Sales; price increase from 1 Dec 2026 |
| Automotive glass | Laminated and tempered glass for Japanese vehicles | Japanese OEMs | Made by Central Glass Products, sold through Central Sanglass (65% owned; Saint-Gobain partner) |
| Glass fiber | Continuous fiber (chopped strands for reinforced plastics); glass wool for automotive acoustic insulation | Compounders, auto-parts makers | Central Glass Fiber; high-value continuous fiber growing, commodity grades weak, glass wool for auto acoustics steady |
Pricing models are not disclosed for any product line. Prices are set by negotiation and, in electrolytes and glass, often linked to raw material costs.
Financial Narrative
Income statement: notes and sources
Sources: Kessan Tanshin and securities reports, FY2022–FY2026. EBITDA is operating income plus depreciation and amortisation. Central Glass has no dilutive securities, so diluted EPS equals basic EPS. FY2022 EPS is based on about 40.5 million shares outstanding, before the 2022 tender-offer buyback.
Margins and growth
Revenue CAGR from FY2022 to FY2026 was -8.5%. Divestitures, mainly Carlex (sales of about US$400 million in calendar 2021) and the German CDMO, explain the fall. Sales from continuing businesses were broadly flat to down over the period, as electrolyte collapsed and semiconductor gases grew.
Commentary. The five years fall into three phases.
Restructuring (FY2022): Group sales rose 8.1% to ¥206.2 billion, but the decision to sell the loss-making US and European automotive glass businesses brought ¥54.7 billion of extraordinary losses and a net loss of ¥39.8 billion. The operating margin was only 3.5%, the low point of the old glass-heavy portfolio.
Peak (FY2023–FY2024): With Carlex gone and domestic kilns rationalised, gross margin rose by almost five points to 25.4% in FY2023. Operating income more than doubled to ¥16.8 billion, helped by a temporary surge in HFO demand and strong electrolyte volumes. Net income of ¥42.5 billion in FY2023 included ¥28.7 billion of extraordinary gains from selling land, trust beneficiary rights and investments. FY2024 operating income fell 13% to ¥14.5 billion as HFO demand normalised.
Electrolyte drag (FY2025–FY2026): EV-related electrolyte demand fell sharply from FY2024. Sales dropped 10% in FY2025 and operating income fell 27% to ¥10.6 billion. Net income halved to ¥5.7 billion after impairments and losses on sales of affiliates. In FY2026, Electronic Materials growth (+8.1%), a weaker yen and Life & Healthcare improvements roughly offset a ¥3.3 billion Energy Materials loss, leaving operating income at ¥10.0 billion. Net income rose 47% to ¥8.4 billion because the previous year's extraordinary losses did not recur.
Gross margin held between 25% and 27% after the restructuring. SG&A stayed at ¥28–29 billion even as sales fell, so the operating margin slipped from 9.9% to 6.9%.
Quarterly profile, FY2026 and Q1 FY2027
Profits were weakest in the first half of FY2026 and recovered strongly from Q3, as specialty-gas price increases and volumes went through. Q1 FY2027 was the strongest first quarter in the post-restructuring period.
Balance sheet
Shareholders' equity for FY2022 and FY2023 is total assets multiplied by the reported equity ratio.
The balance sheet shrank by a third over the period: from ¥290.7 billion in total assets in FY2022 to ¥197.8 billion in FY2026. The causes were the Carlex sale, the ¥50 billion tender-offer buyback in September 2022, and steady repayment of debt. Interest-bearing debt fell 44% in two years, from ¥53.0 billion at March 2024 to ¥29.8 billion at March 2026. At December 2025 the debt-to-equity ratio was 0.30x, and it was 0.24x at year-end. Goodwill and intangibles are small after the Carlex and Apollo sales and are not shown separately in the summary disclosures.
Cash flow
Operating cash flow rose every year from FY2023 to FY2026 and reached ¥26.4 billion in FY2026, 2.6 times net income, as working capital was released and depreciation stayed around ¥8 billion. In FY2023, investing cash flow was positive because of disposal proceeds, and that cash paid for the ¥50 billion buyback (financing outflow of ¥47.0 billion). From FY2024 onwards, financing outflows of ¥16–18 billion a year went to debt repayment and dividends of about ¥4.3 billion. FY2026 capital spending was planned at ¥8.5 billion (¥6.7 billion in the first nine months). Projects included power-receiving equipment and offices at Ube, rationalising Energy Materials production lines, and R&D equipment. Depreciation was planned at ¥8.0 billion. No buybacks have been made since the 2022 tender offer, and none are planned in Phase 1 of the medium-term plan.
Ratios
ROE in FY2026 was 7.0%, just below the company's stated cost of equity of about 7.4% and well below the 10% VISION 2030 target. The very high ROE in FY2023 came from one-off gains, not from operations. ROIC targets are 6.1% for the year ending March 2028 and 7.0% for the year ending March 2031. The company has not disclosed a reported historical ROIC series. The current ratio and cash conversion cycle are not given in summary disclosures. Working capital fell steadily as electrolyte inventories were run down, which helped the rise in operating cash flow.
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Segment Overview
| Segment | Contents | Main entities | Consolidated employees (31 Mar 2026) |
|---|---|---|---|
Electronic Materials | High-purity semiconductor process gases (etching, cleaning, deposition), SiC wafers, bonding materials for power semiconductors, PFAS-free resist materials | Central Glass (Ube); Chi Chia Electronic Materials (Taiwan, 71.5%); Taiwan Central Glass; Giga Gas & Electronic Materials (Singapore); Zhejiang Bora Zhongxiao (China WF6 joint venture) | 364 |
Energy Materials | Lithium-ion battery electrolytes; next-generation battery materials | Central Glass Czech s.r.o.; Zhejiang Zhongniao Kangpeng Chemical (60%); Jcel Co. (Korea, 65%); Central Glass International (US); Jiangxi Tinci Zhongxiao New Materials (35%, equity method) | 437 |
Life & Healthcare | Medical chemicals (APIs, intermediates, inhalation anaesthetics); material chemicals (HFO blowing agents and solvents, fluoro-functional products); fertilizers | Central Glass (Ube, Kawasaki works); Central Chemical Co. (fertilizer) | 687 |
Glass | Architectural glass, automotive glass, glass fiber (continuous fiber and glass wool) | Central Glass Products; Central Glass Sales; Central Sanglass (65%); Central Glass Fiber | 1,213 |
Other | Engineering, logistics and other services | Various | 255 (plus 238 corporate) |
Segment net sales (JPY 100M)
| Segment net sales (JPY 100M) | FY2026 | FY2027 initial guidance |
|---|---|---|
Electronic Materials | 262 | 321 |
Energy Materials | 121 | 252 |
Life & Healthcare | 410 | 402 |
Glass | 596 | 612 |
Other | 55 | 53 |
Total | 1,445 | 1,640 |
Segment operating income (JPY 100M) | FY2026 | FY2027 initial guidance |
Electronic Materials | 40 | 45 |
Energy Materials | -33 | -8 |
Life & Healthcare | 62 | 50 |
Glass | 28 | 13 |
Other | 3 | 0 |
Total | 100 | 100 |
Segment metric, FY2026 | Electronic Materials | Energy Materials |
Operating margin (%) | 15.2 | -27.0 |
Share of group sales (%) | 18.1 | 8.4 |
Sales growth YoY (%) | 8.1 | -19.5 |
Segment Revenue
| Segment (9 months to Dec) | Sales 9M FY2025 | Sales 9M FY2026 | OI 9M FY2025 | OI 9M FY2026 |
|---|---|---|---|---|
Electronic Materials | 179 | 194 | 39 | 30 |
Energy Materials | 114 | 83 | -13 | -28 |
Life & Healthcare | 294 | 290 | 37 | 40 |
Glass | 437 | 438 | 18 | 18 |
Other | 31 | 41 | 3 | 3 |
Total | 1,055 | 1,045 | 84 | 63 |
Segment, Previous Basis Details
| Segment, previous basis (JPY Mn) | FY2025 |
|---|---|
Chemicals net sales | 85,765 |
Chemicals operating income | 8,200 |
Glass net sales | 58,467 |
Glass operating income | 2,500 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 206,184 | 169,309 | 160,339 | 144,233 | 144,479 |
Cost of sales (JPY Mn) | 163,616 | 126,342 | 117,982 | 104,874 | 105,896 |
Gross profit (JPY Mn) | 42,567 | 42,966 | 42,356 | 39,358 | 38,583 |
SG&A (JPY Mn) | 35,304 | 26,208 | 27,829 | 28,729 | 28,553 |
Operating income (JPY Mn) | 7,262 | 16,757 | 14,526 | 10,629 | 10,029 |
EBITDA (JPY Mn) | 19,444 | 25,786 | 23,643 | 19,517 | 18,022 |
Ordinary income (JPY Mn) | 11,936 | 19,637 | 16,269 | 12,164 | 12,281 |
Extraordinary income (JPY Mn) | 4,118 | 28,717 | 3,314 | 1,287 | 1,095 |
Extraordinary losses (JPY Mn) | 54,685 | 3,736 | 3,030 | 3,905 | 1,198 |
Pre-tax income (JPY Mn) | -38,630 | 44,618 | 16,553 | 9,547 | 12,179 |
Income taxes (JPY Mn) | 494 | 1,216 | 3,219 | 3,086 | 2,817 |
Net income attributable to owners (JPY Mn) | -39,844 | 42,494 | 12,478 | 5,678 | 8,360 |
Basic EPS (JPY) | -984.58 | 1,222.21 | 503.55 | 229.14 | 337.27 |
Dividend per share (JPY) | 75 | 115 | 159 | 170 | 170 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 20.6 | 25.4 | 26.4 | 27.3 | 26.7 |
Operating margin (%) | 3.5 | 9.9 | 9.1 | 7.4 | 6.9 |
EBITDA margin (%) | 9.4 | 15.2 | 14.7 | 13.5 | 12.5 |
Net margin (%) | -19.3 | 25.1 | 7.8 | 3.9 | 5.8 |
Sales growth YoY (%) | 8.1 | -17.9 | -5.3 | -10.0 | 0.2 |
Operating income growth YoY (%) | 78.7 | 130.7 | -13.3 | -26.8 | -5.6 |
Income Statement and Per-Share Data (Quarterly)
| Metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 33,368 | 33,062 | 38,091 | 39,958 | 37,763 |
Operating income (JPY Mn) | 1,586 | 916 | 3,831 | 3,696 | 3,958 |
Ordinary income (JPY Mn) | 1,781 | 1,631 | 4,780 | 4,089 | 4,875 |
Net income (JPY Mn) | 834 | 1,301 | 3,621 | 2,604 | 3,906 |
EPS (JPY) | 33.65 | 52.51 | 146.09 | 105.05 | 157.6 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 290,696 | 221,090 | 214,404 | 204,834 | 197,825 |
Net assets (JPY Mn) | 130,063 | 107,861 | 120,050 | 121,063 | 128,212 |
Shareholders' equity (JPY Mn) | 126,162 | 103,470 | 114,916 | 116,728 | 123,626 |
Equity ratio (%) | 43.4 | 46.8 | 53.6 | 57.0 | 62.5 |
Book value per share (JPY) | 3,115.69 | 4,176.04 | 4,637.42 | 4,709.77 | 4,986.36 |
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View Subscription PlansKey Financials
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Cash and equivalents (JPY Mn) | 16,672 | 19,858 | 22,040 | 22,078 |
Interest-bearing debt (JPY Mn) | — | 53,005 | 42,321 | 29,836 |
Net debt (JPY Mn) | — | 33,147 | 20,281 | 7,758 |
“—” = not publicly disclosed.
Cash Flow
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Operating cash flow (JPY Mn) | 16,599 | 22,236 | 23,587 | 26,441 |
Investing cash flow (JPY Mn) | 19,958 | -3,338 | -4,244 | -10,027 |
Free cash flow, OCF + ICF (JPY Mn) | 36,557 | 18,898 | 19,343 | 16,414 |
Financing cash flow (JPY Mn) | -47,039 | -15,971 | -17,567 | -17,673 |
Total dividends declared (JPY Mn) | 3,389 | 4,020 | 4,298 | 4,298 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | -27.3 | 37.0 | 11.4 | 4.9 | 7.0 |
ROA, net income basis (%) | -13.7 | 19.2 | 5.8 | 2.8 | 4.2 |
Interest coverage, OI / interest expense (x) | 23.6 | 51.4 | 41.2 | 36.2 | — |
Dividend payout ratio (%) | not meaningful | 9.4 | 31.6 | 74.2 | 50.4 |
Ratio | FY2024 | FY2025 | FY2026 | — | — |
Debt / equity (x) | 0.46 | 0.36 | 0.24 | — | — |
Net debt / EBITDA (x) | 1.40 | 1.04 | 0.43 | — | — |
Asset turnover (x) | 0.74 | 0.69 | 0.72 | — | — |
Ordinary income / total assets (%) | — | 5.8 | 6.1 | — | — |
“—” = not publicly disclosed.
Revenue by Region and Revenue by Region (%)
| Region (JPY Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Japan | 94,081 | 100,387 | 97,947 | 97,532 |
Asia | 25,218 | 32,174 | 26,870 | 20,305 |
Europe | 35,206 | 26,832 | 25,373 | 14,869 |
United States | 49,545 | 0 | 0 | 0 |
Other regions | 2,132 | 9,915 | 10,148 | 11,526 |
Overseas sales ratio (%) | 54.4 | 40.7 | 38.9 | 32.4 |
Region growth YoY (%)
| Region growth YoY (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Japan | 6.7 | -2.4 | -0.4 |
Asia | 27.6 | -16.5 | -24.4 |
Europe | -23.8 | -5.4 | -41.4 |
Other regions | 365.0 | 2.3 | 13.6 |
Capital Markets
| Item | Value |
|---|---|
Share price (early November 2026) | about ¥4,350 |
2026 year-to-date intraday high / low | ¥4,790 (10 Aug 2026) / ¥3,470 (5 Jan 2026) |
Shares issued / outstanding | 26.0 million / about 24.8 million |
Market capitalisation | about ¥113 billion (issued basis) |
Trading unit | 100 shares |
Share Price & Returns
| Reference date | Price |
|---|---|
21 Dec 2022 | 2,953 |
5 Nov 2024 | 3,550 |
19 May 2025 | 2,853 |
6 Mar 2026 | 4,165 |
24 Jun 2026 | 4,135 |
10 Aug 2026 | 4,620 |
5 Oct 2026 | 4,505 |
4 Nov 2026 | 4,350 |
Valuation Multiples
| Multiple | Central Glass |
|---|---|
P/E, FY2027 company EPS forecast (x) | 13.5 |
P/B, FY2026 BPS (x) | 0.87 |
EV/EBITDA, FY2026 (x) | 6.9 |
EV/Sales, FY2026 (x) | 0.83 |
Dividend yield, forecast (%) | 3.9 |
Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2027 forecast |
|---|---|---|---|---|---|---|
Interim DPS (JPY) | 37.5 | 37.5 | 57.5 | 85 | 85 | 85 |
Year-end DPS (JPY) | 37.5 | 77.5 | 101.5 | 85 | 85 | 85 |
Annual DPS (JPY) | 75 | 115 | 159 | 170 | 170 | 170 |
Analyst Conclusions
Management guidance (FY2027, revised 10 August 2026)
| Metric | FY2026 actual | FY2027 initial (May 2026) | FY2027 revised (Aug 2026) | H1 FY2027 forecast |
|---|---|---|---|---|
| Net sales (JPY 100M) | 1,445 | 1,640 | 1,675 | 790 |
| Operating income (JPY 100M) | 100 | 100 | 110 | 62 |
| Ordinary income (JPY 100M) | 123 | 103 | 113 | 63 |
| Net income (JPY 100M) | 84 | 72 | 80 | 42 |
| EPS (JPY) | 337 | 290 | 323 | 169 |
Net sales (JPY 100M): FY2026 actual: 1445; FY2027 initial (May 2026): 1640; FY2027 revised (Aug 2026): 1675; H1 FY2027 forecast: 790
Operating income (JPY 100M): FY2026 actual: 100; FY2027 initial (May 2026): 100; FY2027 revised (Aug 2026): 110; H1 FY2027 forecast: 62
Ordinary income (JPY 100M): FY2026 actual: 123; FY2027 initial (May 2026): 103; FY2027 revised (Aug 2026): 113; H1 FY2027 forecast: 63
Net income (JPY 100M): FY2026 actual: 84; FY2027 initial (May 2026): 72; FY2027 revised (Aug 2026): 80; H1 FY2027 forecast: 42
EPS (JPY): FY2026 actual: 337; FY2027 initial (May 2026): 290; FY2027 revised (Aug 2026): 323; H1 FY2027 forecast: 169
The revised full-year plan implies operating income of about ¥2.2 billion in Q2 and ¥4.8 billion in the second half, after ¥4.0 billion in Q1. That looks conservative given Q1 Electronic Materials margins, but it reflects expected Energy Materials losses of about ¥1.9 billion in the first half and ¥0.8 billion in the second.
Bull case
-
Specialty-gas pricing power is structural. Electronic Materials margin reached 28.5% in Q1 FY2027 after price increases. Tight supply of tungsten and fluorine, plus cryo-etch HF adoption, supports above-trend margins.
-
The balance sheet and subsidies pay for growth. Net debt/EBITDA is 0.43x, and up to ¥17.6 billion of METI support covers HF capacity expansion without diluting shareholders.
-
Electrolyte losses can only shrink. If Energy Materials gets back to breakeven from a ¥3.3 billion loss in FY2026, group operating income would reach about ¥13–14 billion, in line with the ¥13 billion target for the year ending March 2028. At 0.87x book that is not priced in.
Bear case
-
Electrolyte is a value trap. Losses widened in the FY2027 revised plan (to ¥2.7 billion from ¥0.8 billion) even with sales up about 76%, which suggests Chinese competition sets prices and pass-through will not close the gap.
-
The quality of the profit beat is weak. FY2026 net income rose because the previous year's extraordinary losses did not recur. Operating income fell for a second year, ordinary income relied on currency gains and subsidies, and SG&A stays high relative to sales.
-
Raw-material and geopolitical risk is concentrated. WF6 depends on Chinese tungsten, and the gas franchise depends on a few fabs in Taiwan, Korea and China. A supply disruption or demand pause would hit the only high-margin segment.
Catalysts and monitorables (next 12 months)
| Timing | Catalyst |
|---|---|
| 12 Nov 2026 | H1 FY2027 results: Q2 gas margins, Energy Materials loss, any full-year revision |
| 1 Dec 2026 | Architectural glass price increase takes effect |
| Feb 2027 | Q3 FY2027 results |
| 2026–2027 | Start-up of more cryo-etch HF capacity at Ube; customer qualification news |
| 2026–2027 | Investment schedule and capacity for the METI-backed HF plant |
| 2026–2027 | Progress on the Foosung Korean joint venture and the Taiwan gas plant |
| 2026–2027 | Tungsten sourcing diversification; Chinese export-control decisions |
| May 2027 | FY2027 results and FY2028 guidance against the ¥13 billion target; any change to shareholder-return policy |
| Ongoing | Electrolyte contract pricing linked to LiPF6; North American volumes through Duksan |
12 Nov 2026: Catalyst: H1 FY2027 results: Q2 gas margins, Energy Materials loss, any full-year revision
1 Dec 2026: Catalyst: Architectural glass price increase takes effect
Feb 2027: Catalyst: Q3 FY2027 results
2026–2027: Catalyst: Start-up of more cryo-etch HF capacity at Ube; customer qualification news
2026–2027: Catalyst: Investment schedule and capacity for the METI-backed HF plant
2026–2027: Catalyst: Progress on the Foosung Korean joint venture and the Taiwan gas plant
2026–2027: Catalyst: Tungsten sourcing diversification; Chinese export-control decisions
May 2027: Catalyst: FY2027 results and FY2028 guidance against the ¥13 billion target; any change to shareholder-return policy
Ongoing: Catalyst: Electrolyte contract pricing linked to LiPF6; North American volumes through Duksan
Analyst verdict
Central Glass is more promising than its valuation suggests, but it has not yet shown it can earn its cost of capital. The 2022–2023 restructuring worked. It removed a loss-making overseas glass business, returned ¥50 billion to shareholders, cut the share count by about a third, and left a business with 25–27% gross margins, low debt and rising operating cash flow, which reached ¥26.4 billion in FY2026. Inside that business sits a small, high-quality semiconductor fluorine-gas franchise. It is integrated back to fluorspar, already qualified for cryogenic etching at leading memory makers, localising production in Taiwan and Korea, and now recognised by the Japanese state as strategic infrastructure. In Q1 FY2027 that franchise earned a 28.5% margin, and it explains most of the operating-profit growth in the revised guidance.
The case is held back by Energy Materials. Electrolyte was supposed to be the second growth leg. Instead it lost ¥3.3 billion in FY2026 and is forecast to lose ¥2.7 billion in FY2027, despite large volume growth. Without it, group operating income would already be about ¥13–14 billion, roughly the medium-term target. With it, ROE stays at about 7%, below the company's own cost of equity, and the shares stay below book value.
At about 13.5x forward earnings, 0.87x book and a 3.9% dividend yield protected by a ¥170 floor, the stock is reasonably valued for a company with these two very different parts. The rating is neutral with a positive bias. The key evidence will be the electrolyte margin trend in the H1 FY2027 results and any sign that management is ready to restructure or exit that business, not just wait for 2028 EV demand. A clear path to breakeven in Energy Materials, together with steady specialty-gas pricing, would support a re-rating towards 1.0–1.1x book. If tungsten supply is disrupted or semiconductor demand pauses while electrolyte losses continue, the shares would likely fall back to the ¥3,500–3,800 range.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Born | Director since | Career highlights | Shares held |
|---|---|---|---|---|---|
Kazuhiko Maeda | Representative Director, President & CEO | 25 Nov 1959 | 2015 | Joined 1984; head of chemicals business planning (2009); head of Energy Materials sales (2012); Executive Officer (2014); Managing Director (2015); Representative Director and Senior Managing Executive Officer (2021); Executive Vice President (2022); President & CEO since June 2023 | 7,000 |
Tetsuo Kanai | Representative Director, Senior Managing Executive Officer | 16 Oct 1964 | 2022 | Joined 1988; general manager, automotive materials, and representative of Central Saint-Gobain Investment (2014); CEO, Carlex Glass America and chair, Carlex Glass Luxembourg (2018–2021); General Manager, Corporate Management Office (2021); Representative Director (2025) | 2,500 |
Akihiro Ishii | Director, Senior Managing Executive Officer | 23 Mar 1962 | 2023 | Joined 1986; head of Chemical Research Institute (2016); Executive Officer (2019); Managing Executive Officer (2021); Senior Managing Executive Officer (2024) | 5,200 |
Masaya Kawata | Outside Director (independent) | 20 Apr 1952 | 2021 | Joined Nisshinbo 1975; President of Nisshinbo Brake (2009); President (2013) and Chairman (2019, 2022) of Nisshinbo Holdings | 100 |
Shiori Ishihara | Outside Director (independent) | 13 Sep 1986 | 2024 | Bank of Japan (2010); lawyer at Asahi Law Offices (partner, 2023); experience at Smith, Gambrell & Russell (US) | 0 |
Keikō Terui | Outside Director (independent) | 27 Jul 1953 | 2025 | Joined MITI (now METI) 1979; Director-General, Kanto Bureau of Economy, Trade and Industry (2011); Managing Director, Chemicals Evaluation and Research Institute (2020) | 500 |
Masanori Murata | Director, Audit & Supervisory Committee Member | 22 May 1964 | 2025 | Joined 1988; head of Audit Department (2018); full-time Audit & Supervisory Board Member (2022) | 1,400 |
Toshihide Nishimura | Outside Director, Audit & Supervisory Committee Member (independent) | 13 Jan 1955 | 2025 (outside auditor from 2021) | Joined Onoda Cement (now Taiheiyo Cement) 1979; Director and Managing Executive Officer (2015); full-time Audit & Supervisory Board Member (2017) | 0 |
Toshifumi Mikayama | Outside Director, Audit & Supervisory Committee Member (independent) | 18 Jul 1957 | 2025 (outside auditor from 2021) | Joined Kirin Brewery 1983; Director of Kirin Pharma (2007); Director and Senior Managing Executive Officer (2018) and Executive Vice President (2021) of Kyowa Kirin | 100 |
Masako Goto | Outside Director, Audit & Supervisory Committee Member (independent) | 21 Feb 1978 | 2025 (outside auditor from 2023) | Certified Public Accountant (2004); senior manager at Ernst & Young ShinNihon (2017); now runs her own CPA practice | 0 |
Executive Leadership Team
| Name | Role |
|---|---|
Kazuhiko Maeda | President & CEO |
Tetsuo Kanai | Senior Managing Executive Officer; former head of the Corporate Management Office (finance and planning) |
Akihiro Ishii | Senior Managing Executive Officer (R&D and technology) |
Masatomi Kanai | Managing Executive Officer (from 2026) |
Hidehisa Nanai | Managing Executive Officer |
Mototsugu Ichinose | Managing Executive Officer; Energy Materials Sales; Representative of Jcel, Central Glass Czech and Zhejiang Zhongniao Kangpeng |
Masaaki Kawase | Managing Executive Officer; President of Central Glass Products |
Takeyasu Kawano | Executive Officer, General Manager of Human Resources (from 26 June 2026) |
Hidekazu Hashimoto | General Manager, Corporate Communications (investor relations contact) |
Board & Management Changes
| Date | Change |
|---|---|
Jun 2023 | Kazuhiko Maeda, previously Executive Vice President and head of the chemicals and energy materials businesses, becomes President & CEO, succeeding Tadashi Shimizu (President since 2017) |
Jun 2024 | Akihiro Ishii promoted to Senior Managing Executive Officer |
Jun 2025 | Move to an Audit & Supervisory Committee structure; Tetsuo Kanai made Representative Director; Keikō Terui joins as outside director |
May 2026 | Executive-officer reshuffle announced, effective 26 June 2026, including new heads for Electronic Materials sales, Energy Materials sales, Central Glass Products and Human Resources |
Jun 2026 | All six directors other than Audit & Supervisory Committee members re-elected at the 112th AGM |
Major Shareholders
| Rank | Shareholder | Shares held | Stake (%) |
|---|---|---|---|
| 1 | Custody Bank of Japan, Ltd. (trust account) | 3,447,000 | 13.64 |
| 2 | The Master Trust Bank of Japan, Ltd. (trust account) | 3,111,000 | 12.30 |
| 3 | The Yamaguchi Bank, Ltd. | 640,000 | 2.53 |
| 4 | State Street Bank and Trust Company 505001 | 570,000 | 2.25 |
| 5 | CG Business Partners Shareholding Association | 553,000 | 2.19 |
| 6 | CG Cooperating Companies Shareholding Association | 551,000 | 2.18 |
| 7 | State Street Bank and Trust Company (second account) | 541,000 | 2.14 |
| 8 | DFA International Small Cap Value Portfolio | 538,000 | 2.13 |
| 9 | The Master Trust Bank of Japan, Ltd. (second trust account) | 447,000 | 1.77 |
| 10 | The Bank of New York Mellon | 442,000 | 1.75 |
| — | Top 10 total | — | 42.88 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Country | Positioning against Central Glass |
|---|---|---|---|
Electronic Materials (specialty gases) | SK Specialty (owned by Hahn & Co since 2025) | South Korea | World's largest semiconductor specialty-gas maker (NF3, WF6); much larger scale |
| — | Resonac (formerly Showa Denko) | Japan | Broad etching and cleaning gas portfolio; far larger group |
| — | Kanto Denka Kogyo | Japan | Direct rival in fluorinated gases including WF6 and ClF3 |
| — | Merck KGaA (Versum Materials) | Germany/US | Global electronic materials leader |
| — | Linde | Global | Industrial-gas major with specialty electronics gases and on-site fluorine |
| — | Air Liquide | France | Electronics specialty gases and materials |
| — | Taiyo Nippon Sanso (Nippon Sanso Holdings) | Japan | Electronics gases and supply systems |
| — | Hyosung Chemical | South Korea | NF3 producer |
| — | PERIC (CSSC 718th Institute) | China | NF3 and WF6; benefits from Chinese localisation |
| — | Shandong FeiYuan, Guangdong Huate Gas | China | Fast-growing domestic Chinese suppliers |
| — | Stella Chemifa, Morita Chemical | Japan | High-purity HF and fluorides |
| — | Foosung | South Korea | Also a joint-venture partner |
Energy Materials (electrolytes) | Guangzhou Tinci Materials | China | Largest electrolyte maker; integrated into LiPF6; also a partner through the Jiangxi joint venture |
| — | Shenzhen Capchem | China | Number two in electrolytes worldwide |
| — | Enchem, Soulbrain, Dongwha Electrolyte | South Korea | Suppliers to Korean cell makers |
| — | Mitsubishi Chemical (MU Ionic Solutions) | Japan | Japanese electrolyte incumbent |
Life & Healthcare (fluorochemicals) | Honeywell (Solstice) | US | Leader in HFO-1233zd(E) |
| — | Daikin, AGC, Chemours, Arkema | Various | Fluorochemicals and HFOs |
Glass | AGC | Japan | Largest Japanese glassmaker |
| — | Nippon Sheet Glass | Japan | Number two in Japanese flat and automotive glass; Central Glass is number three |
Glass fiber | Nitto Boseki, Nippon Electric Glass | Japan | Continuous glass fiber |
Key Competitors
| Company | Latest FY net sales (JPY 100M) |
|---|---|
Resonac Holdings (FY to Dec 2025) | 13,500 |
Denka (FY to Mar 2026) | 3,843 |
Tokuyama (FY to Mar 2026) | 3,495 |
Kureha (FY to Mar 2026) | 1,617 |
Central Glass (FY to Mar 2026) | 1,445 |
