ISE CHEMICALS CORPORATION
4107・Standard Market・Chemicals
Iodine and Natural Gas Business
Ise Chemicals' core segment, accounting for approximately 87% of consolidated net sales, engaged in the manufacture and sale of iodine and natural gas
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Q1 FY2026, ending December 2026) | ¥7,628 million | ¥7,040 million (Q1 FY2025, ended December 2025) | ↑ |
| Operating Income (Q1 FY2026, ending December 2026) | ¥1,986 million | ¥1,987 million (Q1 FY2025, ended December 2025) | — |
| Operating Margin (Q1 FY2026, ending December 2026) | 26.0% | 28.2% (Q1 FY2025, ended December 2025) | ↓ |
| Net Sales (Full Year FY2025, ended December 2025) | ¥34,656 million | — | ↑ |
| Operating Income (Full Year FY2025, ended December 2025) | ¥9,465 million | — | ↑ |
| Depreciation (Q1 FY2026, ending December 2026) | ¥599 million | ¥487 million (Q1 FY2025, ended December 2025) | ↑ |
Business Details
The company produces iodine from underground brine using the blowing-out method and sells it domestically and internationally (Japan, Asia, North America, and Europe). Iodine Compounds are also manufactured and sold solely by the company. Natural Gas is extracted from brine and sold to gas distribution companies in the Sotobo area of Chiba Prefecture, the Satsudohara area of Miyazaki Prefecture, and in the United States. Major customers include AGC Inc. (net sales of ¥10,985 million), Mitsubishi Corporation (¥7,206 million), and Maruzen Pharmaceuticals Co., Ltd. (¥4,494 million).
Recent Overview
Net sales increased 8.3% year-on-year due to continued firm international iodine market conditions, though operating income was flat due to increased depreciation
In Q1 FY2026 (January to March 2026), continued firm international iodine market conditions drove net sales up ¥587 million (8.3%) year-on-year to ¥7,628 million. By region, sales to Asia increased significantly from ¥1,943 million in the prior-year period to ¥2,375 million. On the other hand, depreciation expenses associated with active capital investment increased from ¥487 million to ¥599 million year-on-year, resulting in operating income of ¥1,986 million, down ¥1 million (0.1%) year-on-year and roughly flat compared to the prior-year period.
Key Products
Growth Drivers
- Maintenance and increase in sales prices due to continued firm international iodine market conditions
- Substantial increase in sales to Asia (Q1 FY2026: ¥2,375 million, up 22.2% year-on-year)
- Medium- to long-term demand expansion, primarily in medical applications, driven by the increasing global elderly population and economic growth in developing countries
- Long-term expansion of supply capacity through continued development of new wells
- Improvement in production capacity and productivity through active capital investment
Risks
- Risk from fluctuations in international iodine market conditions (deterioration in profitability when prices decline)
- Risk of declining profit margins due to increased depreciation expenses associated with active capital investment
- Risk of decline in underground brine pumping volume and natural gas extraction volume (production decline at existing wells)
- International competition risk with Chile and the United States (competition with major producing countries)
- Risk of trade friction due to uncertainty in U.S. trade policy and tariff measures
- Risk of structural changes in iodine demand due to major technological innovation
- Impairment risk related to fixed assets (book value of ¥2,825 million) held by the consolidated subsidiary Woodward Iodine Corporation
Last updated: March 27, 2026