Ube Industries, Ltd Overview
| Item | Detail |
|---|---|
| Legal name | UBE Corporation (UBE株式会社) |
| Former names | Ube Industries, Ltd. / 宇部興産株式会社 (1942 – March 2022) |
| Origins / founding year | 1897 (Okinoyama Coal Mine, a silent partnership). The current corporation was incorporated in March 1942 through the merger of four Ube companies. |
| Incorporation jurisdiction | Japan |
| Registered head office | 1978-96 Oaza Kogushi, Ube City, Yamaguchi Prefecture, Japan |
| Tokyo head office (operational HQ) | Seavans North Building, 1-2-1 Shibaura, Minato-ku, Tokyo |
| Stock exchange / ticker | Tokyo Stock Exchange Prime Market: 4208. Also quoted OTC in the US (UBEOF) and in Frankfurt (UBE); both are secondary quotations. Disclosures from 2023 also referenced a Fukuoka Stock Exchange listing; the FY2026 Yuho lists only the TSE. |
| ISIN / LEI | ISIN JP3158800007; LEI 529900XMRZ2VNF3ZPS69. CUSIP: not applicable (no US primary listing). |
| Fiscal year end | 31 March |
| Share capital | JPY 58,435 million |
| Shares issued / treasury | 106,200,107 issued; 9,054,915 treasury shares (31 March 2026); about 97.15 million outstanding |
| Employees (consolidated) | 7,968 at 31 March 2026. Trend: 7,882 (FY2024), 7,563 (FY2025), 7,968 (FY2026). The FY2026 increase came mainly from the LANXESS Urethane Systems acquisition. |
| Employees (parent only) | 2,778 at 31 March 2026; average age 43.4 years, average tenure 15.3 years, average salary JPY 7.75 million |
| Auditor | EY ShinNihon LLC; 57 years of continuous audit; FY2026 group audit fees JPY 182 million |
| Market capitalisation | About JPY 306 billion, computed as JPY 3,147 close on 7 October 2026 × about 97.15 million shares outstanding excluding treasury. MarketScreener showed JPY 307 billion. |
| Credit rating | JCR long-term issuer rating A (Stable), CP J-1; affirmed 30 January 2026 |
| Website | https://www.ube.com |
| President & CEO | Yuki Nishida (since 1 April 2025) |
| Chairman | Masato Izumihara (non-executive chairman since 1 April 2025) |
The entity profiled is UBE Corporation (UBE株式会社), the Japanese specialty-chemicals and machinery group formerly known as Ube Industries, Ltd. (宇部興産株式会社). This is an exact legal-name match for the input "UBE Corporation". The input listing type, "Public company", is confirmed. UBE is listed on the Prime Market of the Tokyo Stock Exchange.
UBE Corporation is a 129-year-old Japanese chemicals and machinery group in the middle of a deliberate transformation from a coal-, ammonia- and caprolactam-anchored commodity producer into a global specialty-chemicals company. Its competitive core is a set of vertically integrated technology chains. The polyimide chain runs from BPDA monomer to UPILEX film, varnish and hollow-fibre gas-separation membranes. The C1 chain runs from proprietary gas-phase dimethyl carbonate (DMC) technology to polycarbonate diols, battery-grade carbonates and, since April 2025, the urethane prepolymer systems acquired from LANXESS. Silicon-nitride ceramics and lithium-ion battery separators (via 66%-owned Ube Maxell) complete the specialty portfolio. UBE also owns UBE Machinery, a die-casting and moulding-machine maker being prepared for IPO, and a 50% stake in Mitsubishi UBE Cement, Japan's No. 2 cement producer, which applied for a TSE listing in July 2026. FY2026 sales were JPY 462.3 billion and operating profit JPY 18.9 billion. Management targets JPY 100 billion+ EBITDA and ROE of 8%+ by FY2030.
What the company does
UBE manufactures and sells a broad range of chemical products and, through UBE Machinery, industrial machinery. From FY2026 it reports six segments:
Functional Products: (機能品; called "Specialty Products" in some English materials): polyimide, separation membranes, ceramics, separators, phenolic resin, semiconductor gases.
High Performance Urethanes: (高機能ウレタン): the urethane systems acquired from LANXESS, plus legacy high-performance coatings (polycarbonate diol, PCD, and polyurethane dispersion, PUD).
Pharmaceutical: (医薬): drug discovery plus contract development and manufacturing of active pharmaceutical ingredients (APIs) and intermediates.
Resins & Chemical Products: (樹脂・化成品; called "Polymers & Chemicals" in English materials): composites, nylon polymers, caprolactam and ammonium sulphate, industrial chemicals, C1 chemicals, elastomers.
Machinery: (機械): die-casting machines, extrusion presses, injection-moulding machines, industrial machinery, bridges and steel structures, after-sales service.
Others: (その他): electric power supply from in-house coal-fired generation, real estate, overseas sales companies.
The cement business is not consolidated. Since 1 April 2022 it has sat inside Mitsubishi UBE Cement Corporation (MUCC), a 50:50 equity-method joint venture with Mitsubishi Materials. MUCC's contribution appears in "equity in earnings of affiliates" below operating profit: JPY 12.6 billion in FY2026 and JPY 15.6 billion in FY2025 (Source: FY2026 results presentation, 13 May 2026).
Company's own description (FY2026 Yuho, paraphrased)
The Yuho describes the group as 77 companies (the parent plus 76 affiliates at 31 March 2026). It states its purpose as "Breaking Through with the Chemistry of Hope" (希望ある化学で、難題を打ち破る) and its 2030 vision as becoming "a specialty chemicals company contributing to the global environment, people's health and an enriched future society." The medium-term plan "UBE Vision 2030 Transformation – 2nd Stage" (FY2025–FY2030 in company labelling) sets five materialities:
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Expansion of specialty businesses
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Activation of diverse human resources
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Occupational safety and process safety
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Response to global environmental issues
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Sincere and fair corporate governance
Business model and revenue model
UBE's revenue is overwhelmingly product sales. The Yuho states that chemical revenue is recognised on delivery or risk transfer, while long-dated machinery contracts are recognised over time using an input (cost-to-cost) method. Four secondary revenue streams matter at the margin:
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Technology licensing. UBE licenses its DMO (dimethyl oxalate) and MEG (monoethylene glycol) production technology to roughly 25 Chinese coal-chemical producers, with contracts dated 2010–2020. It also licenses DMC and DMC/EMC technology to at least 12 Chinese counterparties (2015–2024), and polyimide and separator technology to Panasonic Industry, SUMaterials and Ube Maxell. Management flagged lower C1 licence income as a FY2027 headwind.
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Machinery after-sales service. This is described as a stable, recurring, high-margin stream, and was the main profit stabiliser in Machinery during FY2025–FY2026.
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Pharmaceutical royalties and contract manufacturing. Royalty income declined in FY2025.
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Electricity sales from the Ube coal-fired power plant to external customers, including MUCC's cement plants.
No subscription revenue is disclosed. The product-versus-service mix is not disclosed numerically. Machinery after-sales and licence income are not broken out separately.
Value-chain position
UBE sits in the upstream-to-midstream part of the chemical value chain.
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In the polyimide chain it is fully integrated from monomer (BPDA, biphenyl tetracarboxylic dianhydride) to film, varnish and hollow fibre, through to finished gas-separation modules.
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In C1 it owns the core catalytic process (gas-phase methyl-nitrite route to DMC). It sells merchant DMC/EMC into battery electrolytes and semiconductor processing, and downstream into PCD/PUD coatings and now urethane prepolymers.
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In nylon it has historically been integrated from benzene through cyclohexanone and caprolactam to nylon-6 polymer and compounded composites. The upstream part of this chain is being shut in Thailand (March 2026) and Japan (March 2027).
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In elastomers it is a mid-sized polybutadiene producer supplying tyre makers.
Customer types and end-markets
| End-market | Representative UBE products | Notes |
|---|---|---|
| Electronics / displays / smartphones | Polyimide film (FPC, COF), polyimide varnish for OLED panels, BPDA, high-purity chemicals, semiconductor gases | UBE claims No. 1 global share in polyimide film for COF applications in LCD displays (company website) |
| Automotive / EV / HEV | Li-ion separators (HEV-weighted), DMC/EMC electrolyte solvents, silicon-nitride bearing balls and substrates, nylon composites, polybutadiene (tyres), die-casting machines (incl. large "giga-cast" machines) | HEV demand drove separator growth in FY2026; EV slowdown hurt ceramics |
| Energy / environment | CO2 separation membranes for biomethane, nitrogen membranes, low-carbon ammonia supply chain participation | Biomethane membranes hit by customer inventory adjustments in FY2026; recovery seen in Q1 FY2027 |
| Industrial / mining / construction | Urethane cast elastomers (rollers, wheels, mining screens), industrial machinery (kilns, vertical mills, crushers, conveyors), bridges | Urethane systems strongest in the US |
| Packaging / food | Nylon-6 for food-packaging film, polyethylene film | Weak overseas demand in FY2026 |
| Agriculture | Ammonium sulphate fertiliser (by-product of caprolactam) | Shrinking with the caprolactam exit |
| Pharmaceuticals | API and intermediate CDMO; drug discovery partnerships | Volumes fell 33% in FY2026 |
Independent characterisation
UBE is best understood as a "sum-of-the-parts in transition." The listed equity currently bundles five distinct things:
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A sub-scale but technologically differentiated specialty-chemicals core (Functional Products plus Urethanes plus C1), earning roughly 9–16% segment margins.
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A large, low-margin, cyclical "structural reform" commodity block (caprolactam, nylon, ammonia, elastomers), which generated about JPY 188 billion of sales in FY2026 at roughly breakeven.
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A mid-cycle machinery business heading for IPO.
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A 50% stake in a cement company heading for IPO, booked at about JPY 204 billion in investments in joint ventures.
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A coal-fired power asset.
The investment case depends on how quickly management can shrink item 2, monetise items 3 and 4, and redeploy capital into item 1 without destroying value through acquisition premiums. That last risk is real: FY2026 ROIC was 3.8% against an estimated 8% cost of equity.
Strategy
Stated strategy (FY2026 Yuho; 20 May 2025 medium-term-plan briefing; 25 June 2026 investor presentation)
Long-term vision (2030): "A specialty chemicals company that contributes to the global environment, people's health and an enriched future society."
Medium-term plan: "UBE Vision 2030 Transformation – 2nd Stage", a six-year plan covering company fiscal years 2025–2030 (i.e. It follows the 1st Stage (FY2023–FY2025). Its core themes, in paraphrase:
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Expand specialty businesses. Grow polyimide, separation membranes, ceramics and C1. Integrate the acquired urethane systems business and pursue synergies with the C1 chain: DMC/EMC is "upstream" and urethane systems is "downstream", in Nishida's framing. Create new specialty businesses through in-house development plus M&A of adjacent businesses and start-ups (an M&A Promotion Office was created in April 2025).
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Restructure basic businesses. Exit ammonia, caprolactam and nylon polymer in Japan and Thailand to reduce earnings volatility and GHG emissions. Spain continues with an environmental-product focus.
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Complete the "independence" of Machinery and Cement through stock-exchange listings, as the "final stage of autonomy."
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Build a five-region global structure (Japan, Asia, Europe, Americas, China), with strengthened regional capital, command, people and back-office functions to support global M&A.
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ROIC management applied to group investments, with projects screened for ROIC above WACC.
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Human capital. A new HR system from April 2026 abolishes the career/basic-track distinction and adds a "Specialist Course". The retirement age is to rise to 65.
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Raise R&D intensity from about 2.5% of sales to 4–5%, according to Nishida's interview with Nikkei Asia partner content.
Medium-term financial targets
| Metric | FY2026 plan [co. FY2025] | FY2026 actual | FY2027 plan [co. FY2026] | FY2028 plan [co. FY2027] | FY2031 plan [co. FY2030] |
|---|---|---|---|---|---|
| Net sales | 490.0 | 462.3 | 545.0 | 545.0 | 550.0 |
| Operating profit | 25.0 | 18.9 | 32.0 | 40.0 | 60.0 |
| Ordinary profit | 37.5 | 37.5 | 41.5 | 45.0 | 65.0 |
| Net income | 27.5 | 23.9 | 30.0 | 37.0 | 45.0 |
| ROS (%) | 5.1 | 4.1 | 5.9 | 7.3 | 11.0 |
| ROE (%) | 6.8 | 5.7 | 7.1 | 8.4 | 9.0 |
Source: FY2026 Yuho, "progress vs. plan". Figures in JPY billion.
The company's headline 2030 KPI set comprises EBITDA of JPY 100 billion or more, ROS of 10% or more, ROE of 8% or more and ROIC of 6% or more. A third-party summary (ENVALITH) also cites a longer-range aspiration for FY2035–FY2040 of JPY 1 trillion in sales, JPY 100 billion operating profit and ROE above 10%.
Gap analysis. The FY2027 company guidance of JPY 485 billion sales and JPY 23.5 billion operating profit is already JPY 60 billion and JPY 8.5 billion below the original plan for that year. The plan is effectively being re-based.
Capital allocation plan, FY2026–FY2031 [company FY2025–FY2030] (FY2026 Yuho)
| Cash sources (JPY Bn) | Amount | Cash uses (JPY Bn) | Amount |
|---|---|---|---|
| Operating cash flow | 460 | Capex | 325 |
| Asset sales etc. (incl. IPO proceeds) | 175 | Investments and loans (M&A) | 135 |
| Other / available for allocation | ~115 | R&D | 85 |
| Total available | ~750 | Shareholder returns | 100 |
| — | — | Debt repayment | 65 |
About 75% of investment is earmarked for specialty businesses (25 June 2026 presentation).
Strategic initiatives announced in the last 24 months
| Initiative | Date | Detail / target | Status |
|---|---|---|---|
| Louisiana DMC/EMC plant | Decision February 2024 | About USD 500 million; 100 kt/y DMC + 40 kt/y EMC; the only US DMC/EMC producer | Under construction; completion targeted July 2026 with operations from November 2026 per earlier disclosures. Still "under construction" at 7 August 2026. |
| LANXESS Urethane Systems acquisition | Signed 3 October 2024; closed 1 April 2025 | EV EUR 460 million; gross about EUR 500 million | PMI under way; segment loss of JPY 0.5 billion in FY2026; FY2027 target JPY 1.0 billion operating profit |
| Basic-business structural reform | 28 January 2025 | Exit Thai caprolactam (done March 2026) and downsize Thai nylon (done); exit Ube caprolactam and nylon (March 2027) and ammonia (March 2028) | On track and partly accelerated |
| Polyimide film capacity +20% | — | Ube | Commercial operation April 2026 |
| Separation-membrane capacity +80% | — | Hollow fibre and modules | Commercial operation November 2025 |
| Silicon-nitride capacity +50% | — | Ube | Trial run; commercial start around September–October 2026 |
| Separator capacity +30% | — | Ube Maxell, Sakai | Trial run; expansion announced 3 June 2026 |
| High-purity nitric acid expansion | — | Ube | Completion due in company FY2026 |
| MUCC IPO | Preparation 16 May 2025; application 1 July 2026 | Targeting December 2026 per Bloomberg (5 August 2026) | Pending |
| UBE Machinery IPO | Preparation announced | Toward a TSE listing | Pending; management describes it as being in its "final stage" |
| Shareholder-return upgrade | 20 May 2026 | DOE raised from 2.5% or more to 3.5% or more, aiming for 4.0%. FY2027 DPS of JPY 160, up from JPY 110. Buybacks funded from part of the IPO proceeds are under consideration. | Effective FY2027 |
| GHG targets | Updated May 2025 | −50% by FY2031 [co. FY2030] versus FY2014 [co. FY2013]; −70% by FY2036; −65% expected by FY2029 because of the plant exits | On track |
| Nature-positive KPIs | 30 March 2026 | 70% cut in emissions of 20 priority chemicals by FY2031 (vs 2010); 95% cut in landfilled industrial waste (vs 2000) | Set |
| Circular-economy KPIs | May 2025 | Plastic-waste landfill −50% (vs FY2023); recycling rate 80% or more; 50 kt or more of circular products sold | Set |
| Low-carbon ammonia supply chain (IHI / ACME, India) | 30 June 2026 | Certified under Japan's price-gap support scheme. Supply from FY2031 onward; IHI offtakes from the ACME Odisha project and supplies seven Japanese companies, including UBE. | Certified |
| Corporate venturing | February 2026 | Investments in Immaterial Ltd (UK advanced-materials start-up) and CheomdanLab Inc. (South Korea) | Done |
| University co-creation | 1 January 2026 | UBE × Tohoku University co-creation research institute (2026–2028) | Active |
| DX strategy | Ongoing | Smart factory; DX-talent development | Ongoing |
Products & Services
Pricing models are not disclosed for any product line. All products are sold on negotiated B2B terms, and naphtha-, benzene- and butadiene-linked formula pricing is described qualitatively for the commodity lines.
Functional Products
| Product line | Description and key capabilities | Target customers | Status / latest development |
|---|---|---|---|
| Polyimide film (UPILEX) | BPDA-based polyimide film with very high heat resistance and dimensional stability. Used in flexible printed circuits (FPC), chip-on-film (COF) for LCD drivers, and two-layer copper-clad laminates. | FPC and COF makers; display and smartphone supply chain | UBE claims No. 1 global share in COF applications for LCDs. Ube capacity +20% entered commercial operation in April 2026. FY2026 film sales were flat. |
| Polyimide varnish (U-Varnish) | Liquid polyimide precursors for flexible OLED substrates and electronic insulation | OLED panel makers (incl. Chinese makers) | FY2026 hurt by lower sales of smartphones using UBE material; Q1 FY2027 demand recovering in smartphone OLED |
| BPDA monomer | Biphenyl tetracarboxylic dianhydride, the starting monomer for UBE's polyimide chain; also sold externally | Polyimide producers | Q1 FY2027 volumes up |
| Polyimide powder and other forms | Mouldable polyimide | Industrial | Not separately quantified |
| Gas-separation membranes (UBE N2 Separator, CO2 membranes, H2 recovery, dehydration) | Asymmetric polyimide hollow fibres in modules. Nitrogen generation for equipment, aircraft fuel-tank inerting and food; CO2 removal for biomethane / renewable natural gas upgrading; hydrogen recovery. | Gas-equipment OEMs, biogas plant builders, industrial users | Hollow-fibre and module capacity +80% entered commercial operation in November 2025 (Ube and Sakai). Biomethane membranes saw inventory adjustment in FY2026, with recovery in Q1 FY2027. |
| Silicon-nitride ceramics | High-purity silicon-nitride powder made by UBE's imide decomposition process, for bearing balls and power-module substrates | Bearing makers (EV motors), power-electronics substrate makers | Capacity +50% in trial run, with commercial operation expected around September–October 2026 after customer certification. FY2026 sales down on EV slowdown. |
| Continuous inorganic fibre (Tyranno fibre) | Silicon-carbide-based continuous fibre for ceramic-matrix composites | Aerospace (next-generation engines) | R&D and niche commercial |
| Li-ion battery separators | Dry-process polyolefin separators made by Ube Maxell Co. (UBE 66.01%, Maxell Ltd. the minority holder) | Battery makers, especially for hybrid vehicles | Sakai separator capacity +30% in trial run. Ube Maxell expansion announced 3 June 2026. FY2026 was the only growing Functional Products line. |
| Phenolic resin | Phenolic resins (legacy of the Meiwa Plastic Industries merger in 2021) | Semiconductor and electronics | Q1 FY2027 volumes up on semiconductor demand |
| Semiconductor gas products | High-purity process gases | Semiconductor fabs | Not separately quantified |
| Ube Exsymo products | Electronic and information-communication materials, PP mouldings and fibres, FRP | Electronics, industrial | Ube Exsymo sales JPY 12.2 billion in FY2026 |
High Performance Urethanes
| Product line | Description | Target customers | Status |
|---|---|---|---|
| Urethane Systems (ex-LANXESS) | High-performance hot-cast polyurethane prepolymers. Legacy LANXESS brands include Adiprene, Vibrathane, Duracast and Trixene. Low-free-isocyanate (LF) prepolymer technology addresses regulatory and workplace-safety requirements. | Rollers, wheels, mining screens, oil-and-gas parts, coatings, adhesives and sealants, semiconductor-equipment parts | Five manufacturing sites at closing (USA, UK, Italy, China, Brazil) plus application labs in the US, Europe and China. About 400 employees. About EUR 250 million LTM sales at June 2024 per LANXESS. Contributed 9 months (April–December 2025) to FY2026. |
| Polycarbonate diols (PCD, ETERNACOLL brand) | DMC-derived PCDs for high-durability polyurethanes (synthetic leather, coatings) | Coating, synthetic-leather and adhesive formulators | Produced in Ube, Spain and Thailand (UBE Fine Chemicals Asia). Weak overseas sales in FY2026, recovering in Q1 FY2027. |
| Polyurethane dispersions (PUD) | Water-based PU dispersions, under a technology licence from Incorez (2007) | Automotive interiors, textile printing | New grades adopted in automotive and textile printing in FY2026 |
Pharmaceutical
| Product line | Description | Status |
|---|---|---|
| Contract development and manufacturing (CDMO) of APIs and intermediates | Process development and commercial API production at the Ube Chemical Factory and the Yoshitomi Factory (ex-API Corporation) | FY2026 contract volumes fell, cutting segment sales by 33%. FY2027 guidance is flat sales with an improved mix. |
| Drug discovery | In-house and partnered discovery. UBE is known as co-originator of several marketed drugs, including the antiplatelet prasugrel and the antihypertensive azelnidipine. | December 2025: joint research with Xeureka (small-molecule oncology); lead-nomination milestone reached in May 2026. Global exclusive licence of UD-051 (with Kumamoto University) to GALTS Pharma. March 2026: licence agreement with Kyorin Pharmaceutical for novel drug candidates. |
| Royalty income | Royalties on partnered drugs | Declining (cited in FY2025) |
Resins & Chemical Products
| Product line | Description | Target customers | Status |
|---|---|---|---|
| Nylon composites (glass-fibre-reinforced PA) | Compounded engineering plastics; recycled and biomass grades sold under the U-BE-INFINITY environmental brand | Automotive | Volume up in FY2026 on domestic auto recovery. Manufacturas Paulowsky (Spain, recycled resin) acquired in FY2025. Production in Japan, Thailand, Spain and the US (UBE Engineered Composites, Indiana). |
| Nylon polymers (UBE NYLON PA6 and copolymers; UBESTA PA12) | Nylon-6 for food-packaging film, monofilament and automotive | Film converters, auto suppliers | Thai polymer capacity halved in March 2026; Japanese polymer production to stop in March 2027; Spain continues |
| Caprolactam & ammonium sulphate | Nylon-6 monomer; ammonium sulphate fertiliser by-product | Nylon producers, agriculture | Thai production stopped March 2026; Japan to stop March 2027; Spain continues |
| Industrial chemicals | Ammonia, nitric acid, high-purity nitric acid, sulphuric acid, hydrogen peroxide (UBE Hydrogen Peroxide), liquefied gases | Chemical, electronics and power industries | Ube ammonia production to stop in March 2028. High-purity nitric acid expansion due FY2026 (company year). |
| C1 chemicals (DMC, EMC, DMO, oxalates) | Gas-phase methyl-nitrite route to DMC with low energy use and few by-products; EMC derived from DMC; technology licensing in China | Li-ion electrolyte makers, semiconductor makers, PC/PCD makers | Louisiana plant (100,000 t/y DMC and 40,000 t/y EMC) under construction; completion was scheduled for July 2026 with operations from November 2026. FY2027 profit hit by start-up costs and lower licence income. |
| Elastomers (UBEPOL BR / VCR polybutadiene) | High-cis polybutadiene and vinyl-cis rubber for tyres and impact-modified polystyrene | Tyre makers, plastics | Chiba (UBE Elastomer) and Thailand (Thai Synthetic Rubbers, 74%). Malaysian JV LOTTE UBE Synthetic Rubber dissolved in FY2025 (equity-method loss). |
| Polyethylene film | Ube Film Co. plastic films | Packaging | Sales JPY 10.5 billion in FY2026 |
| Recycled films (UBECycle) | Mechanically recycled films | Food packaging | Food-contact approval obtained March 2026 |
Machinery (UBE Machinery Corporation and subsidiaries)
| Product line | Description | Target customers | Status |
|---|---|---|---|
| Die-casting machines | Cold-chamber die-casting machines, including ultra-large "giga-cast" machines for one-piece EV body structures and high-cycle casting for EV electrical housings | Automotive OEMs and Tier-1s | Weak automotive orders in FY2026; Q1 FY2027 automotive product sales down |
| Aluminium extrusion presses | Large extrusion presses | Aluminium extruders | — |
| Injection-moulding machines | Large two-platen electric machines (5500emIII under development), energy-saving barrel heaters; ex-Mitsubishi Heavy Industries Plastic Technology line | Automotive, appliances | U-MHI Platech merged 2020 |
| Industrial machinery | Cement kilns, vertical roller mills, conveyors, dust collectors, crushers, chemical equipment | Cement, power, mining | Fewer large projects in FY2026 |
| Bridges and steel structures | Steel bridges and structures | Public works | — |
| After-sales service | Parts, retrofits and maintenance, including for third-party machines | Installed base | Recurring and profitable; offset weak product sales in FY2026 and Q1 FY2027 |
| Marine and industrial machinery (Fukushima Seisakusho) | Marine machinery | Shipbuilders | Small |
Machinery KPIs (FY2026 Yuho): orders JPY 82.5 billion (+9.8%); order backlog JPY 57.8 billion (+13.7%). UBE Machinery standalone FY2026: sales JPY 50.3 billion, ordinary profit JPY 5.7 billion, net income JPY 4.6 billion, net assets JPY 50.9 billion.
Others
| Line | Description |
|---|---|
| Electric power | Coal-fired in-house power plant in Ube (145 MW unit completed 1982), with surplus sold externally. Revenue linked to coal prices. Biennial maintenance in even-numbered years. |
| Real estate | Sale, leasing and management of land and buildings |
| Overseas sales companies | UBE (Shanghai), Ube Europe GmbH, UBE Korea, Taiwan UBE, UBE Hong Kong, UBE (Thailand); UBE Corporation America is the US holding company |
Financial Narrative
Comparability warning. FY2022 includes the cement business, which was deconsolidated on 1 April 2022. The step-down in sales, assets and employees between FY2022 and FY2023 is structural, not operational. FY2025 and FY2023 contain large one-off losses. All figures are J-GAAP in JPY millions.
Income statement
Source: FY2026 Yuho; ENVALITH/EDINET; FY2026 results presentation. Gross profit for FY2023 is as originally reported. EBITDA for FY2022–FY2024 is ENVALITH's calculation (operating profit plus depreciation and amortisation); FY2025–FY2026 is company-reported.
Revenue CAGR. FY2022–FY2026: −8.4% a year (distorted by the cement deconsolidation). FY2023–FY2026, on a like-for-like ex-cement basis: −2.2% a year.
Commentary.
Revenue: Sales have drifted down from JPY 495 billion (FY2023) to JPY 462 billion (FY2026). Three forces drove this:
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deflation and volume loss in caprolactam and nylon in Asia, with China's capacity build-out compressing spreads;
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deconsolidation of Ube Steel (November 2024), which removed about JPY 13.5 billion of annual sales;
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the pharma contract-volume collapse in FY2026.
These were partly offset by the urethanes acquisition, which added about JPY 30.9 billion in FY2026 from nine months of consolidation.
Gross margin: Gross margin rose to 22.4% in FY2026 from 18.7%. This reflects mix (urethanes and specialty), lower depreciation after the FY2025 impairment of ammonia, caprolactam and nylon assets (JPY 29.1 billion), and the absence of the biennial ammonia turnaround.
SG&A: SG&A rose JPY 11.6 billion, driven by consolidation of the urethane business, PMI costs and higher R&D (R&D in SG&A of JPY 12.1 billion versus JPY 9.5 billion).
Below the line: Ordinary profit (JPY 37.5 billion) is about twice operating profit because of equity-method income, chiefly MUCC (JPY 12.6 billion), and JPY 4.3 billion of FX gains. This means UBE's reported earnings quality depends heavily on an asset it does not control.
FY2025 loss: The JPY 4.8 billion loss stemmed from JPY 29.1 billion of impairments: JPY 18.7 billion in Thailand, JPY 8.8 billion in Japan ammonia and caprolactam, and JPY 1.4 billion in Spain. It also reflected JPY 3.9 billion of related business losses and a JPY 7.9 billion equity-method loss on the dissolution of the Malaysian elastomer JV.
FY2023 loss: The FY2023 loss was driven by a JPY 23.1 billion equity-method loss at MUCC, as coal costs spiked before cement price increases took hold.
Balance sheet
Source: FY2026 Yuho; FY2023–FY2026 results presentations. Equity is shareholders' equity excluding non-controlling interests (NCI) and subscription rights. Interest-bearing debt is company-defined.
Debt split at 31 March 2026 (FY2026 Yuho):
Short-term: short-term borrowings JPY 80,754 million; current portion of bonds JPY 10,000 million; commercial paper zero (down from JPY 8,996 million); current lease obligations JPY 642 million.
Long-term: bonds JPY 80,000 million; long-term borrowings JPY 182,190 million; lease obligations JPY 4,586 million.
Goodwill and intangibles (FY2025 → FY2026): goodwill JPY 2,002 million → JPY 32,247 million; other intangibles JPY 9,691 million → JPY 26,137 million (including JPY 13,254 million of customer-related assets from the LANXESS deal). Goodwill arising from the urethane acquisition was JPY 29,976 million and is amortised over up to 20 years under J-GAAP.
Investments in affiliates: JPY 218,055 million at 31 March 2026, of which JPY 203,521 million is in joint ventures (overwhelmingly MUCC).
At 30 June 2026, interest-bearing debt had fallen to JPY 340,300 million after UBE used the JPY 28.7 billion MUCC dividend to pay down debt. Equity was JPY 439,100 million and D/E 0.77x.
Cash flow
Source: FY2026 Yuho; results presentations. Capex is the company's accrual-basis figure; FCF is defined as operating CF plus investing CF.
The signs of FY2022 investing and FY2023 financing are inferred from the Yuho presentation conventions. FY2026 investing cash flow included JPY 72.4 billion for PP&E and intangibles and JPY 71.5 billion for the acquisition of subsidiaries (urethane systems). Share buybacks were negligible: JPY 6 million in each of FY2025 and FY2026, representing odd-lot purchases only.
Commentary. UBE has generated negative free cash flow in four of the last five years. Cumulative FCF over FY2022–FY2026 was about −JPY 106 billion, financed by debt (+JPY 117 billion net in FY2025 alone). Operating cash flow of JPY 60 billion in FY2026 is the best in five years, helped by JPY 11.0 billion of dividends and interest received (mostly MUCC). The investment peak is FY2026–FY2027: capex of JPY 69.0 billion was spent in FY2026 and JPY 85.0 billion is planned for FY2027, of which JPY 43.0 billion is for Resins & Chemical Products, mainly the Louisiana DMC/EMC plant. The planned FY2027 debt peak is JPY 415 billion. Q1 FY2027 FCF turned positive at JPY 35.7 billion, flattered by the JPY 28.7 billion MUCC dividend booked as an investing inflow.
Ratios
Methodology notes:
-
The cash conversion cycle uses FY2026 year-end balances: trade receivables (notes plus accounts receivable) JPY 96.8 billion = 76 days of sales; inventories JPY 136.7 billion = 139 days of COGS; trade payables JPY 53.7 billion = 55 days of COGS.
-
Net debt/EBITDA uses company EBITDA, which excludes MUCC equity income. On "business profit" (OP + interest/dividends + equity income: JPY 35.4 billion in FY2026), leverage would be lower but still high.
-
Interest expense was JPY 1,730 million in FY2025 and JPY 3,465 million in FY2026. Interest costs doubled as debt rose and Japanese rates normalised.
Inflections.
Leverage: has risen sharply. Net debt/EBITDA went from 3.6x in FY2024 to 6.6x in FY2026 as UBE financed the LANXESS deal and the Louisiana plant before either produced full-year earnings. Management's guardrail is D/E of about 0.6x, with a hard cap of 1.0x (FY2026 Yuho). The FY2027 plan reaches 0.92x.
Working capital: is lengthening. Inventory days rose from about 112 to 139 as the urethane business was consolidated and inventories were built ahead of the Thai and Japanese plant closures.
ROIC: of 3.8% remains well below management's estimated cost of equity of about 8% (stated in the "cost of capital and share price" disclosure). This explains the 0.7x P/B multiple.
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View Subscription PlansFinancial Detail
Revenue by Segment
| Metric | FY2025 | FY2026 | FY2027E |
|---|---|---|---|
Functional Products sales (JPY Mn) | 66,157 | 61,900 | 89,000 |
High Performance Urethanes sales (JPY Mn) | 15,616 | 46,549 | 68,000 |
Pharmaceutical sales (JPY Mn) | 31,490 | 21,004 | 21,000 |
Resins & Chemical Products sales (JPY Mn) | 273,558 | 251,237 | 239,000 |
Machinery sales (JPY Mn) | 86,876 | 68,414 | 70,000 |
Others sales (JPY Mn) | 39,204 | 34,483 | 36,000 |
Adjustments (JPY Mn) | -26,099 | -21,244 | -38,000 |
Consolidated net sales (JPY Mn) | 486,802 | 462,343 | 485,000 |
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View Subscription PlansResults by Segment
| Metric | FY2025 | FY2026 | FY2027E |
|---|---|---|---|
Functional Products operating profit (JPY Mn) | 11,668 | 9,758 | 15,000 |
High Performance Urethanes operating profit (JPY Mn) | -200 | -548 | 1,000 |
Pharmaceutical operating profit (JPY Mn) | 1,151 | -1,255 | 500 |
Resins & Chemical Products operating profit (JPY Mn) | -713 | 8,189 | 5,000 |
Machinery operating profit (JPY Mn) | 7,883 | 6,242 | 4,500 |
Others operating profit (JPY Mn) | 2,057 | 1,916 | 1,500 |
Adjustments (JPY Mn) | -3,804 | -5,361 | -4,000 |
Consolidated operating profit (JPY Mn) | 18,042 | 18,941 | 23,500 |
Segment Revenue
| Segment | Sales YoY (%) | OP margin FY2025 (%) | OP margin FY2026 (%) | Share of external sales FY2026 (%) | External sales FY2026 (JPY Mn) |
|---|---|---|---|---|---|
Functional Products | -6.4 | 17.6 | 15.8 | 11.0 | 50,930 |
High Performance Urethanes | +198.1 | -1.3 | -1.2 | 10.0 | 46,130 |
Pharmaceutical | -33.3 | 3.7 | -6.0 | 4.5 | 20,640 |
Resins & Chemical Products | -8.2 | -0.3 | 3.3 | 49.4 | 228,419 |
Machinery | -21.3 | 9.1 | 9.1 | 14.7 | 68,087 |
Others | -12.0 | 5.2 | 5.6 | 10.4 | 48,137 |
Revenue by Segment (FY2023–FY2025)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Functional Products sales (JPY Mn) | 62,200 | 63,800 | 66,200 |
Resins & Chemical Products sales (JPY Mn) | 293,400 | 258,600 | 287,200 |
Machinery sales (JPY Mn) | 96,900 | 96,900 | 86,900 |
Others sales (JPY Mn) | 73,100 | 74,500 | 67,800 |
Functional Products operating profit (JPY Mn) | 10,200 | 12,100 | 11,700 |
Resins & Chemical Products operating profit (JPY Mn) | 2,600 | 2,500 | 1,900 |
Machinery operating profit (JPY Mn) | 5,200 | 7,200 | 7,900 |
Others operating profit (JPY Mn) | 2,600 | 4,500 | 3,200 |
Revenue by Segment — Specialty businesses sales
| Metric | FY2025 | FY2026 | FY2027E |
|---|---|---|---|
Specialty businesses sales (JPY Mn) | 180,700 | 191,900 | 229,500 |
Structural-reform (basic) businesses sales (JPY Mn) | 200,400 | 187,800 | 178,100 |
Machinery sales (JPY Mn) | 86,900 | 68,400 | 70,000 |
Other incl. adjustments sales (JPY Mn) | 18,800 | 14,200 | 7,400 |
Specialty businesses operating profit (JPY Mn) | 23,700 | 17,500 | 15,500 |
Structural-reform businesses operating profit (JPY Mn) | -10,200 | -1,100 | 7,600 |
Machinery operating profit (JPY Mn) | 7,900 | 6,200 | 4,500 |
Other incl. adjustments operating profit (JPY Mn) | -3,300 | -3,700 | -4,100 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 655,265 | 494,738 | 468,237 | 486,802 | 462,343 |
Gross profit (JPY Mn) | 127,919 | 82,604 | 86,711 | 90,933 | 103,457 |
SG&A (JPY Mn) | 83,881 | 66,314 | 64,255 | 72,891 | 84,516 |
Operating profit (JPY Mn) | 44,038 | 16,290 | 22,456 | 18,042 | 18,941 |
EBITDA (JPY Mn) | 80,741 | 41,716 | 49,158 | 45,500 | 46,400 |
Ordinary profit (JPY Mn) | 41,549 | -8,745 | 36,333 | 22,369 | 37,506 |
Pre-tax profit (JPY Mn) | 36,794 | -2,596 | 35,068 | -10,893 | 30,731 |
Net income attributable to owners (JPY Mn) | 24,500 | -7,034 | 28,981 | -4,816 | 23,872 |
EPS basic (JPY) | 249.31 | -72.54 | 298.59 | -49.60 | 245.76 |
EPS diluted (JPY) | 248.56 | — | 298.45 | — | 245.73 |
Dividend per share (JPY) | 95 | 95 | 105 | 110 | 110 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 19.5 | 16.7 | 18.5 | 18.7 | 22.4 |
Operating margin (%) | 6.7 | 3.3 | 4.8 | 3.7 | 4.1 |
EBITDA margin (%) | 12.3 | 8.4 | 10.5 | 9.3 | 10.0 |
Net margin (%) | 3.7 | -1.4 | 6.2 | -1.0 | 5.2 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 837,954 | 732,681 | 789,034 | 866,180 | 946,313 |
Cash & equivalents (JPY Mn) | 78,761 | 30,703 | 35,859 | 115,442 | 52,583 |
Interest-bearing debt (JPY Mn) | 241,800 | 218,100 | 213,400 | 330,536 | 358,172 |
Net debt (JPY Mn) | 163,039 | 187,397 | 177,541 | 215,094 | 305,589 |
Shareholders' equity (JPY Mn) | 369,100 | 361,600 | 408,689 | 395,102 | 437,200 |
Net assets incl. NCI (JPY Mn) | 394,035 | 381,631 | 429,355 | 412,292 | 454,934 |
Working capital (JPY Mn) | 145,515 | 110,884 | 97,457 | 160,658 | 104,384 |
Equity ratio (%) | 44.1 | 49.4 | 51.8 | 45.6 | 46.2 |
BPS (JPY) | 3,813.16 | 3,726.39 | 4,210.11 | 4,067.90 | 4,500.48 |
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View Subscription PlansCash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (JPY Mn) | 32,711 | 18,127 | 52,960 | 35,837 | 59,984 |
Investing cash flow (JPY Mn) | -43,373 | -26,019 | -33,316 | -63,152 | -140,232 |
Free cash flow (OCF + ICF) (JPY Mn) | -10,662 | -7,892 | 19,644 | -27,315 | -80,248 |
Financing cash flow (JPY Mn) | 8,371 | -2,443 | -15,712 | 105,851 | 13,027 |
Capex, accrual basis (JPY Mn) | — | — | 36,100 | 60,700 | 69,008 |
Depreciation (JPY Mn) | — | — | 26,600 | 27,177 | 25,687 |
Dividends paid (JPY Mn) | — | — | — | 10,649 | 10,656 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 6.7 | -1.9 | 7.5 | -1.2 | 5.7 |
ROA, net income / total assets (%) | 2.9 | -1.0 | 3.7 | -0.6 | 2.5 |
ROIC, company-defined (%) | — | — | 4.7 | 3.0 | 3.8 |
Current ratio (x) | 1.58 | 1.64 | 1.49 | 1.81 | 1.51 |
Debt / equity (x) | 0.65 | 0.60 | 0.52 | 0.84 | 0.82 |
Net debt / EBITDA (x) | 2.0 | 4.5 | 3.6 | 4.7 | 6.6 |
Interest coverage, OP / interest expense (x) | — | — | — | 10.4 | 5.5 |
Asset turnover, sales / average assets (x) | 0.82 | 0.63 | 0.62 | 0.59 | 0.51 |
Cash conversion cycle (days) | — | — | — | 145 | 160 |
Revenue by Region (%)
| Metric | FY2025 | FY2026 |
|---|---|---|
Overseas sales ratio (%) | 54 | 55 |
Overseas Entity Details
| Overseas entity (country) | FY2026 sales | Business |
|---|---|---|
UBE Corporation Europe S.A.U. (Spain) | JPY 58.9 billion (external sales over 10% of group) | Composites, nylon, caprolactam, ammonium sulphate, coatings |
UBE Chemicals (Asia) PCL (Thailand) | JPY 39.8 billion | Composites, nylon, caprolactam (caprolactam stopped March 2026) |
Thai Synthetic Rubbers (Thailand) | JPY 22.9 billion | Polybutadiene |
Urethane Systems subsidiaries (USA, UK, Italy, China, Brazil and others) | about JPY 30.9 billion of segment sales attributable to the acquisition | 9 months only |
Data Point Details
| Data point | Value |
|---|---|
Close, 7 October 2026 | JPY 3,147 (MarketScreener) |
YTD 2026 change | +22.4% (implying about JPY 2,571 at end-2025) |
52-week / FY2026 range | FY2026 (April 2025 – March 2026) high JPY 2,902, low JPY 1,788.5 (FY2026 Yuho) |
Market capitalisation | About JPY 306 billion (shares excluding treasury) |
Free float | About 89% (MarketScreener) |
Analyst coverage | 18 analysts (Simply Wall St). Consensus target price and rating are not publicly verifiable. One historical TipRanks entry showed "Hold" with a JPY 2,900 target. |
Share Price
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Share price high (JPY) | 2,444 | 2,118 | 2,811 | 3,098 | 2,902 |
Share price low (JPY) | 1,835 | 1,884 | 2,058 | 2,100 | 1,788.5 |
Capital Markets
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
UBE TSR index | 88.7 | 95.2 | 128.1 | 109.4 | 124.9 |
TOPIX incl. dividends index | 102.0 | 107.9 | 152.5 | 150.2 | 202.2 |
Valuation Multiples
| Multiple | UBE (FY2026A) | UBE (FY2027E, company guidance) | Note |
|---|---|---|---|
P/E | 12.8x | 12.5x | MarketScreener consensus: 12.4x FY2027, 10.3x FY2028 |
EV/EBITDA | 13.0x | 10.6x | Unadjusted. Deducting the MUCC investment at book value (about JPY 204 billion) gives about 7.0x FY2027E. |
EV/Sales | 1.30x | 1.24x | — |
P/B | 0.70x | — | BPS JPY 4,500 |
Dividend yield | 3.5% (JPY 110) | 5.1% (JPY 160) | MarketScreener consensus yield 5.06% |
Per-Share Data and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2027E |
|---|---|---|---|---|---|---|---|
Dividend per share (JPY) | 90 | 95 | 95 | 105 | 110 | 110 | 160 |
DOE (%) | 2.6 | 2.6 | 2.5 | 2.6 | 2.7 | 2.6 | 3.5 |
Payout ratio, parent basis (%) | — | 43.7 | 48.2 | 61.7 | 109.6 | 48.1 | — |
Credit Ratings
| Agency | Rating | Outlook | Date |
|---|---|---|---|
JCR (Japan Credit Rating Agency) | Long-term issuer A; bonds A; shelf preliminary A; CP J-1 | Stable | Affirmed 30 January 2026 |
Moody's / S&P / Fitch | No public rating identified | — | — |
Capital Instruments
| Instrument | Amount | Coupon | Maturity |
|---|---|---|---|
12th unsecured bond | JPY 10 billion | 0.430% | 15 December 2026 |
14th unsecured bond | JPY 10 billion | 0.375% | 25 May 2027 |
Other bonds outstanding | Total bonds JPY 90 billion at 31 March 2026 (JPY 10 billion current + JPY 80 billion non-current) | Various | — |
Long-term borrowings | JPY 182.2 billion | — | — |
Short-term borrowings | JPY 80.8 billion | — | Within 1 year |
Commercial paper | Zero (from JPY 9.0 billion) | — | — |
Unused commitment lines | JPY 22.5 billion | — | — |
Shelf registration | JPY 60 billion available | — | Valid to 9 April 2028 |
Analyst Conclusions
Management guidance (FY2027, as of 7 August 2026, unchanged)
| Metric | H1 FY2027E | FY2027E | FY2026A |
|---|---|---|---|
| Net sales (JPY M) | 235,000 | 485,000 | 462,343 |
| EBITDA (JPY M) | — | 56,500 | 46,400 |
| Operating profit (JPY M) | 5,500 | 23,500 | 18,941 |
| Ordinary profit (JPY M) | 14,000 | 37,500 | 37,506 |
| Net income (JPY M) | 9,500 | 24,500 | 23,872 |
| EPS (JPY) | 97.79 | 252.20 | 245.76 |
| DPS (JPY) | 80 | 160 | 110 |
| Capex (JPY M) | — | 85,000 | 69,008 |
| Interest-bearing debt, year-end (JPY M) | — | 415,000 | 358,172 |
| ROE (%) | — | 5.5 | 5.7 |
| ROIC (%) | — | 4.0 | 3.8 |
Assumptions: JPY 155/USD; domestic naphtha JPY 82,500/kl.
Q1 delivered 23.6% of full-year operating profit and 30.0% of ordinary profit. Q1 operating profit of JPY 5.55 billion already exceeds the H1 guide of JPY 5.5 billion. Management attributed part of the gain to inventory valuation effects from the feedstock spike and deferred any revision.
Consensus growth: MarketScreener implies about 20% EPS growth from FY2027 to FY2028 (P/E falling from 12.4x to 10.3x). Simply Wall St summarises consensus as broadly flat revenue over three years. Detailed consensus is not publicly verifiable.
Bull case
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Capacity-driven specialty inflection. Four expansions come on stream in 2025–2026: polyimide +20%, membranes +80%, ceramics +50% and separators +30%. Management guides Functional Products operating profit up 52% to JPY 15.0 billion. With a full year of urethanes and a Louisiana plant past its start-up costs, specialty operating profit could plausibly exceed JPY 30 billion by FY2029.
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Sum-of-the-parts discount closing. The MUCC stake (book about JPY 204 billion; MUCC FY2026 net income JPY 24.0 billion) plus UBE Machinery (FY2026 net income JPY 4.6 billion, net assets JPY 50.9 billion) could account for most of UBE's JPY 306 billion market cap. IPO marks plus IPO-funded buybacks would crystallise that value.
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Capital-return re-rating. DOE moves from 2.6% to 3.5–4.0%. The resulting dividend of about JPY 160–180 implies a 5–6% yield and a progressive commitment, as the GHG-heavy commodity exit lowers the risk premium.
Bear case
-
Specialty profit is shrinking, not growing. It fell from JPY 23.7 billion (FY2025) to JPY 17.5 billion (FY2026) and is guided to JPY 15.5 billion (FY2027). The group profit increase comes from lower depreciation in commodities, not organic specialty growth, and the plan is already JPY 8.5 billion behind.
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Balance-sheet stretch. Net debt/EBITDA is about 6.6x and debt is guided to JPY 415 billion. About JPY 30 billion of dismantling costs arrive from FY2028. ROIC of 3.8% is less than half the cost of equity. An underperforming Louisiana plant or a urethane impairment (JPY 30 billion of goodwill) could force a rating review.
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Earnings depend on the asset being sold. MUCC supplies about a third of ordinary profit. A partial sale reduces recurring earnings, and IPO timing is market-dependent: the Japanese IPO market is described as sluggish.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| 5 November 2026 | H1 FY2027 results: possible upward revision to H1 and full-year operating profit after the Q1 beat; first quantification of the Louisiana start-up |
| Q4 2026 | Louisiana DMC/EMC commercial operation (scheduled November 2026); customer qualification and utilisation |
| September–October 2026 | Ceramics and separator lines reach commercial operation after customer certification |
| As early as December 2026 | MUCC TSE IPO: pricing, UBE's sell-down size and use of proceeds (buyback announcement) |
| 15 December 2026 | JPY 10 billion bond redemption |
| FY2027 | UBE Machinery listing timetable |
| Ongoing | Urethanes margin progression (FY2027 target JPY 1.0 billion operating profit); polyimide varnish share in China; biomethane membrane orders; feedstock price reversal |
| March 2027 | Shutdown of Ube caprolactam and nylon polymer production |
| May 2027 | FY2027 results; DOE step towards 4%; medium-term plan rebasing |
Analyst verdict
UBE is a credible but unfinished restructuring story that the market has begun, belatedly, to reward. The facts are clear on both sides. On the positive side, management has done the hard, irreversible things. It has written down and is closing the Asian caprolactam and nylon chain a year early, committed to exiting ammonia, bought a scaled global urethane-systems platform, and built the first US DMC/EMC plant. It has also set in motion the listing of two non-core assets, cement and machinery, that together may be worth most of the current market cap. The dividend upgrade to a 3.5% DOE, with a 4% goal and IPO-funded buybacks under consideration, aligns capital allocation with the TSE's push on sub-book companies.
The negative facts are equally concrete. The specialty engine that is supposed to replace commodity earnings shrank in FY2026 and is guided lower again in FY2027. Returns remain far below the cost of capital, at 3.8% ROIC versus about 8% cost of equity. Free cash flow has been negative for most of five years, and leverage of roughly 6.6x net debt/EBITDA leaves little room for a stumble at Louisiana or in urethanes PMI.
At about JPY 3,150 the shares trade on roughly 12.5x guided FY2027 EPS and 0.7x book, with a 5.1% forward yield. Adjusting for the MUCC stake at book value, the operating business trades at about 7x FY2027 EBITDA, which is undemanding for a portfolio that is now about half specialty by sales.
Our assessment is constructive with execution risk. The next 12 months offer unusually binary, observable catalysts: H1 results on 5 November, the Louisiana start-up and the MUCC IPO pricing. If the IPO proceeds are partly returned via buybacks and specialty profit stabilises in H2, the valuation discount should narrow further. If the US plant or urethanes disappoint, balance-sheet constraints will dominate the narrative.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Born (age) | Joined board | Career summary | Shares held |
|---|---|---|---|---|---|
Masato Izumihara | Chairman of the Board (non-executive) | 8 January 1961 (65) | June 2011 | Joined Ube Industries 1983; Executive Officer 2010; Managing EO 2013; Senior Managing EO 2018; President & CEO April 2019 – March 2025; Chairman since April 2025. Sits on the Nominating and Remuneration Committees. | 65,300 |
Yuki Nishida | Representative Director, President & CEO | 16 January 1962 (64) | June 2024 | Joined 1987; MSc Applied Chemistry, Hiroshima University. Posted to UBE Europe (2000) and UBE Chemicals Europe (2003). GM Engineering Plastics & Fine Chemicals Division; Production & Technology Division; DX Promotion Office; C1 Chemicals Project. EO 2016, Managing EO 2019, Senior Managing EO 2022; CEO since April 2025. | 44,200 |
Hirotaka Ishikawa | Representative Director, Managing EO, CFO & CRO | 14 September 1965 (61) | June 2023 | Joined 1989; CFO since April 2023; Representative Director April 2025; CRO from July 2025 | 10,800 |
Ryo Kawamura | Director, Managing EO, CHRO & CCO | 13 June 1967 (59) | June 2025 | Joined 1991; EO 2023; CRO/CCO 2024; CHRO/CCO April 2026 | 5,500 |
Shino Nakata | Director (new, June 2026), EO for Audit Dept. | 5 February 1968 (58) | June 2026 | Joined 1990; EO April 2026 | 2,700 |
Takefumi Fukumizu | Independent Outside Director; Chair of Nominating Committee | 25 February 1952 (74) | June 2022 | Former METI official: Director-General of Kinki Bureau, Commissioner of the Small and Medium Enterprise Agency (2007–08), Vice-Chairman of NEDO, Vice-President of Japan Alcohol Industry, Chairman of the Japan Testing Center for Construction Materials | 3,700 |
Jiro Mitsuoka | Independent Outside Director; Chair of Remuneration Committee | 13 October 1954 (71) | June 2023 | IHI Corporation: President & COO 2016, CEO 2017, Chairman & CEO 2020, Chairman 2021–2026; Representative Director of the Japanese Aero Engines Corporation | 1,900 |
Yuki Kanzaki | Independent Outside Director (new, June 2026) | 24 April 1963 (63) | June 2026 | Kirin Brewery plant management (Kobe, Yokohama); Managing EO, Kirin Holdings; President, Kyowa Hakko Bio (2022–25); outside director of Daifuku and Toyobo | 0 |
Masayuki Fujii | Director, full-time Audit & Supervisory Committee member | 9 March 1963 (63) | June 2019 | Joined 1985; Group CFO 2015; CFO 2019–2023 | 27,000 |
Tamesaburo Yamamoto | Independent Outside Director, Audit & Supervisory Committee Chair | 19 March 1958 (68) | June 2022 | Professor of Law, Keio University (1998–2023), now Professor Emeritus; former CPA and bar examination commissioner | 0 |
Satoko Suzuki | Independent Outside Director, Audit & Supervisory Committee member | 22 November 1973 (52) | June 2022 | CPA and tax accountant; ex-Deloitte Tohmatsu; outside director of Sojitz; outside auditor of Helios Techno Holding | 1,800 |
Tatsuya Tanaka | Independent Outside Director, Audit & Supervisory Committee member | 11 September 1956 (70) | June 2023 | Fujitsu: President 2015–19, Chairman 2019–20; outside director of Nippon Light Metal Holdings, Asahi Mutual Life and Tsukishima Holdings | 2,000 |
Executive Leadership Team
| Name | Title | Responsibility |
|---|---|---|
Yuki Nishida | President & EO | CEO |
Hisaaki Yokoo | Senior Managing EO | GM Elastomer Division; President of UBE Elastomer |
Yoichi Funayama | Senior Managing EO | GM Functional Products Division |
Futoshi Takase | Managing EO | GM Production Division; GM Ube Works |
Hirofumi Nonaka | Managing EO | GM Performance Polymers & Chemicals Division |
Hirotaka Ishikawa | Managing EO | CFO, CRO |
Shinya Takahashi | Managing EO | CSO (Corporate Strategy, DX, IT) |
Ryo Kawamura | Managing EO | CHRO, CCO |
Kenji Hoshino | EO | CLO (environment & safety, quality assurance, purchasing & logistics) |
José Ignacio Iglesias | EO | Representative, UBE Corporation Europe; Europe region |
Yoichi Yoshida | EO | CTO; GM R&D Division |
Anusara Suthikulavet | EO | President & CEO, UBE Chemicals (Asia); Asia region |
Mitsuru Haramoto | EO | Deputy GM Production; GM Ube Chemical Factory |
Takaaki Nishimori | EO | Deputy GM Functional Products |
Koji Sagaoka | EO | President & CEO, UBE Corporation America; Americas region |
Seijiro Kamezawa | EO | GM High Performance Urethanes Division |
Shino Nakata | EO | Audit Department |
Kazuhito Soga | EO | GM Pharmaceutical Division |
Yoshihiro Ushikoshi | EO | GM Corporate Strategy Department |
Directors' Remuneration
| Category | Number | Base pay | Annual incentive | Long-term incentive | Of which restricted stock | Other | Total |
|---|---|---|---|---|---|---|---|
Directors excluding A&SC members | 7 | JPY 143M | JPY 58M | JPY 45M | JPY 20M | JPY 10M | JPY 257M |
of which outside directors | 2 | JPY 24M | — | — | — | JPY 0M | JPY 24M |
A&SC member directors | 4 | JPY 82M | — | — | — | JPY 1M | JPY 83M |
Total | 11 | JPY 224M | JPY 58M | JPY 45M | JPY 20M | JPY 11M | JPY 338M |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
June 2024 | Nishida appointed Representative Director; Hideo Tamada retires | Succession preparation |
19 February 2025 | Board resolves Nishida as President from 1 April 2025 and Izumihara as Chairman | Izumihara cited Nishida's technical background, global business development and DX leadership |
1 April 2025 | Ishikawa becomes Representative Director (CFO) | — |
June 2025 | Chairman Yuzuru Yamamoto retires; Ryo Kawamura joins the board | Board refresh |
July 2025 | Ishikawa adds CRO | — |
April 2026 | Kawamura becomes CHRO/CCO; Nakata becomes EO | HR reform |
25 June 2026 | Nakata and Kanzaki proposed as directors (female ratio to 25%) | Diversity |
Major Shareholders
| Rank | Shareholder | Shares | % |
|---|---|---|---|
| 1 | The Master Trust Bank of Japan (trust account) | 18,196,900 | 18.73 |
| 2 | Custody Bank of Japan (trust account) | 5,306,650 | 5.46 |
| 3 | Sumitomo Life Insurance | 2,000,000 | 2.06 |
| 4 | Nomura Trust & Banking (investment trust account) | 1,813,600 | 1.87 |
| 5 | Nippon Life Insurance | 1,600,009 | 1.65 |
| 6 | The Yamaguchi Bank | 1,535,664 | 1.58 |
| 7 | State Street Bank and Trust 505001 | 1,502,438 | 1.55 |
| 8 | JPMorgan Chase Bank 385781 | 1,367,745 | 1.41 |
| 9 | BNYM as Agent/Clients 10 Percent | 1,309,965 | 1.35 |
| 10 | Norinchukin Bank | 1,237,409 | 1.27 |
| — | Top 10 total | 35,870,380 | 36.92 |
Competitive Landscape
Competitors by Segment
| UBE business | Principal competitors | UBE relative position |
|---|---|---|
Polyimide film | Kaneka (Apical), DuPont (Kapton), Du Pont-Toray, PI Advanced Materials (Korea), Taimide (Taiwan) | Global leader in COF-grade film (company claim); strong in high-modulus BPDA film |
Polyimide varnish (OLED) | Chinese and Korean domestic suppliers, Kaneka, DuPont | Exposed to Chinese substitution; FY2025 commentary noted Chinese products in China's OLED panel market |
Gas-separation membranes | Air Liquide (MEDAL), Evonik (SEPURAN), Air Products (PRISM), Generon | Strong niche in polyimide hollow fibre; biomethane CO2 membranes a growth market |
Silicon nitride (powder, bearing balls, substrates) | Denka, Toshiba Materials, Tokuyama, AlzChem; bearing-ball makers | Leading high-purity powder producer (company positioning); demand tied to EV motors |
Li-ion separators | Asahi Kasei (Hipore/Celgard), Toray, SK IE Technology, SEMCORP (Yunnan Energy), Sinoma, Sumitomo Chemical | Niche dry-process, HEV-weighted; small versus Chinese wet-process leaders |
DMC / EMC electrolyte solvents | Shida Shenghua and other Chinese producers, Asahi Kasei-licensed producers, Lotte Chemical | First and only US DMC/EMC producer once operational; competes with low-cost Chinese imports |
PCD / PUD coatings | Asahi Kasei (Duranol), Tosoh, Covestro, Mitsubishi Chemical | Established in PCD |
Urethane prepolymers / cast elastomers | Covestro, COIM, Era Polymers, Mitsui Chemicals, Huntsman, Dow | Legacy LANXESS brands are among the global leaders in hot-cast prepolymers, especially in the US |
Caprolactam / nylon-6 | BASF, Fibrant, Domo, Sinopec and Chinese producers (Highsun etc.), Sumitomo Chemical, Toray, Envalior | Sub-scale versus China; exiting Asia, keeping Spain |
Engineering-plastic composites | BASF, Envalior, Asahi Kasei, Toray, Celanese | Mid-sized regional player |
Polybutadiene | Zeon, ENEOS Materials, Asahi Kasei, Arlanxeo, LG Chem, Kumho | Mid-sized; exited Malaysian JV |
Die-casting machines | Shibaura Machine, Toyo Machinery & Metal, Bühler, IDRA / LK Group, Yizumi, Haitian | Leading Japanese large-tonnage die-casting maker; competes in giga-casting |
Injection-moulding machines (large) | Japan Steel Works, Sumitomo Heavy Industries, Engel, Haitian | Large-platen niche |
Pharma CDMO | Lonza, Siegfried, WuXi STA, Japanese CDMOs | Small, volatile |
Cement (via MUCC) | Taiheiyo Cement, Sumitomo Osaka Cement, Tokuyama | No. 2 in Japan (JCR) |
Peer Comparison FY2026
| Metric | UBE | Asahi Kasei | Sumitomo Chemical | Mitsubishi Chemical Group | Shin-Etsu Chemical (high-quality benchmark) |
|---|---|---|---|---|---|
Revenue | JPY 462.3 bn | JPY 3.07 tn | JPY 2.33 tn | JPY 3.70 tn | JPY 2.57 tn |
Revenue growth (FY2026) | −5.0% | n/v | n/v | n/v | n/v |
Operating margin | 4.1% | 7.5% | 6.5% | 0.8% | 24.7% |
ROE | 5.7% | 8.0% | 6.4% | 0.7% | 10.4% |
Equity ratio | 46.2% | 50.5% | 29.6% | 30.0% | 78.7% |
R&D / sales | 2.7% | n/v | n/v | n/v | n/v |
PER (EDINET DB snapshot) | 9.9x | 12.9x | 13.4x | 104.2x | 24.8x |
Dividend yield (EDINET DB snapshot) | 4.53% | 2.78% | 2.70% | — | 1.69% |
Recent Developments
Headcount rose by 405 to 7,968, mainly from the acquisition.
