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Sessa Investment Research

IR & Research Intelligence

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<ul><li>MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) delivered substantial profit growth in FY2026/2, driven by expanded sales of higher value-added products, lower crude oil prices, and tighter SG&amp;A control.</li><li>Net sales reached JPY 34,871 mn (+1.4% YoY) and operating profit came to JPY 2,367 mn (+70.2% YoY). Despite incurring foreign exchange losses, both ordinary profit and profit attributable to owners of parent (hereinafter referred to as “net profit”) achieved roughly 50% growth.</li><li>By segment, the Special lubricants segment drove growth on the back of a surge in data center–related demand and new sales expansion of cutting fluids. </li></ul>

MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) delivered substantial profit growth in FY2026/2, driven by expanded sales of higher value-added products, lower crude oil prices, and tighter SG&amp;A control.Net sales reached JPY 34,871 mn (+1.4% YoY) and operating profit came to JPY 2,367 mn (+70.2% YoY). Despite incurring foreign exchange losses, both ordinary profit and profit attributable to owners of parent (hereinafter referred to as “net profit”) achieved roughly 50% growth.By segment, the Special lubricants segment drove growth on the back of a surge in data center–related demand and new sales expansion of cutting fluids. 

Q4 Follow-Up: MORESCO (5018 JP) - May 1,2026

<ul><li>Company overview: MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company") is a R&amp;D-oriented company that has developed products boasting market-leading shares in Japan, such as fire-resistant hydraulic fluid for the steel and automotive industries and liquid paraffin used as ingredients in cosmetics, with the aim of achieving domestic production of special lubricants.</li><li>In recent years, the Company has successfully brought to market water-soluble die casting lubricants and environmentally friendly hot melt adhesives.</li><li>In addition, it has also gained a leading global share in synthetic lubricants such as high temperature greases and hard disk surface lubricants. </li></ul>

Company overview: MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company") is a R&amp;D-oriented company that has developed products boasting market-leading shares in Japan, such as fire-resistant hydraulic fluid for the steel and automotive industries and liquid paraffin used as ingredients in cosmetics, with the aim of achieving domestic production of special lubricants.In recent years, the Company has successfully brought to market water-soluble die casting lubricants and environmentally friendly hot melt adhesives.In addition, it has also gained a leading global share in synthetic lubricants such as high temperature greases and hard disk surface lubricants. 

Moresco (5018 JP) - Lower Crude Oil Prices Boost Earnings, What Lies Ahead for Structural Reforms?

<ul><li>Q3 FY2026/2 Results Review: In Q3 FY2026/2 (cumulative), MORESCO CORPORATION (hereinafter, the Company) reported net sales of JPY 25,573 mn, reflecting a slight decline as automobile production volumes decreased in Japan and North America.</li><li>Meanwhile, profitability improved, supported by revisions to selling prices and expanded sales of high-value-added products, as well as the absence of prior-year special factors such as post-acquisition integration costs at the North American subsidiary and one-off expenses related to the reorganization of the China subsidiary.</li><li>Crude oil prices declined sharply versus the initial plan, and as this more than offset foreign exchange effects, yen-based prices fell by over 10% YoY, contributing to an improvement in the cost of sales ratio. </li></ul>

Q3 FY2026/2 Results Review: In Q3 FY2026/2 (cumulative), MORESCO CORPORATION (hereinafter, the Company) reported net sales of JPY 25,573 mn, reflecting a slight decline as automobile production volumes decreased in Japan and North America.Meanwhile, profitability improved, supported by revisions to selling prices and expanded sales of high-value-added products, as well as the absence of prior-year special factors such as post-acquisition integration costs at the North American subsidiary and one-off expenses related to the reorganization of the China subsidiary.Crude oil prices declined sharply versus the initial plan, and as this more than offset foreign exchange effects, yen-based prices fell by over 10% YoY, contributing to an improvement in the cost of sales ratio. 

Moresco (5018 JP) - Path to Rebuilding the Earnings Base and Structural Transformation

<ul><li>H1 FY2026/2 Results Review: In H1 FY2026/2, MORESCO CORPORATION (hereinafter, the Company) recorded net sales of JPY 16,865 mn (-1.4% YoY), due to lower automobile production and weaker demand for hot melt adhesives.</li><li>However, operating profit rose significantly to JPY 949 mn (+41.5% YoY), supported by the expansion of high-value-added products and tighter control of SG&amp;A expenses.</li><li>The Special lubricants segment achieved higher sales driven by strong performance in cutting fluids and hard disk (HD) surface lubricants, while die casting lubricants declined. Sales in the Hot melt adhesives segment fell 8.1% YoY, whereas the liquid paraffins and sulfonates segment rose 6.1% YoY. </li></ul>

H1 FY2026/2 Results Review: In H1 FY2026/2, MORESCO CORPORATION (hereinafter, the Company) recorded net sales of JPY 16,865 mn (-1.4% YoY), due to lower automobile production and weaker demand for hot melt adhesives.However, operating profit rose significantly to JPY 949 mn (+41.5% YoY), supported by the expansion of high-value-added products and tighter control of SG&amp;A expenses.The Special lubricants segment achieved higher sales driven by strong performance in cutting fluids and hard disk (HD) surface lubricants, while die casting lubricants declined. Sales in the Hot melt adhesives segment fell 8.1% YoY, whereas the liquid paraffins and sulfonates segment rose 6.1% YoY. 

Q2 Follow-Up: MORESCO (5018 JP) - November 10, 2025

<ul><li>In Q1 FY2026/2, MORESCO CORPORATION (hereinafter “MORESCO” or “the Company”) reported consolidated net sales of JPY 8,516 mn, up 3.2% YoY, driven by higher sales both in Japan and overseas.</li><li>Although demand in the automotive sector, which accounts for approximately 45% of net sales, remained sluggish due to lower vehicle production in Japan and the U.S., the impact was absorbed overall, as the Company’s all-round strategy proved effective in promoting diversification across regions, products, and applications.</li><li>Operating profit jumped 174.4% YoY to JPY 520 mn, but ordinary profit declined 1.9% YoY to JPY 441 mn, and net profit fell 4.9% YoY to JPY 237 mn, both weighed down by foreign exchange losses. </li></ul>

In Q1 FY2026/2, MORESCO CORPORATION (hereinafter “MORESCO” or “the Company”) reported consolidated net sales of JPY 8,516 mn, up 3.2% YoY, driven by higher sales both in Japan and overseas.Although demand in the automotive sector, which accounts for approximately 45% of net sales, remained sluggish due to lower vehicle production in Japan and the U.S., the impact was absorbed overall, as the Company’s all-round strategy proved effective in promoting diversification across regions, products, and applications.Operating profit jumped 174.4% YoY to JPY 520 mn, but ordinary profit declined 1.9% YoY to JPY 441 mn, and net profit fell 4.9% YoY to JPY 237 mn, both weighed down by foreign exchange losses. 

Q1 Follow-Up - MORESCO (5018 JP) - July 31, 2025

Japan

MORESCO Corp develops, manufactures, and sells paraffin products, synthetic lubricating oil and hot-melt adhesives.

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Moresco Corp (5018 JP)

Q4 Follow-Up: MORESCO (5018 JP) - May 1,2026

MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) delivered substantial profit growth in FY2026/2, driven by expanded...

Sessa Investment Research

Moresco (5018 JP) - Lower Crude Oil Prices Boost Earnings, What Lies Ahead for Structural Reforms?

Company overview: MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company") is a R&D-oriented company that has developed products...

Sessa Investment Research

Moresco (5018 JP) - Path to Rebuilding the Earnings Base and Structural Transformation

In Q3 FY2026/2 (cumulative), MORESCO CORPORATION (hereinafter, the Company) reported net sales of JPY 25,573 mn, reflecting a slight decline s...

Sessa Investment Research

Q2 Follow-Up: MORESCO (5018 JP) - November 10, 2025

In H1 FY2026/2, MORESCO CORPORATION (hereinafter, the Company) recorded net sales of JPY 16,865 mn (-1.4% YoY), due to lower automobile production...

Sessa Investment Research

Q1 Follow-Up - MORESCO (5018 JP) - July 31, 2025

In Q1 FY2026/2, MORESCO CORPORATION (hereinafter “MORESCO” or “the Company”) reported consolidated net sales of JPY 8,516 mn, up 3.2% YoY

Sessa Investment Research

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