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Kuraray Co (3405) investor relations material

Kuraray Co Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary8 Aug, 2025

Executive summary

  • First half FY2025 saw net sales decrease 2.7% to ¥399.96B, operating income down 42.2% to ¥26.26B, and net income attributable to owners down 53.9% to ¥14.04B, mainly due to negative inventory valuation and weaker demand, especially in Europe and the US.

  • Comprehensive income turned negative at -¥17.65B, mainly due to foreign currency translation losses.

  • Strategic portfolio actions included expansion in optical-use poval film, acquisition of Nelumbo Inc., and withdrawal from underperforming businesses.

Financial highlights

  • Net sales for FY2025 1H were ¥400.0B, down ¥11.3B year-over-year; operating income fell to ¥26.3B, down ¥19.2B.

  • Net income attributable to owners was ¥14.0B, a decrease of ¥16.4B compared to the same period last year.

  • Operating cash flow dropped to ¥42.2B from ¥63.7B; free cash flow turned negative at ¥-7.0B.

  • CAPEX increased to ¥45.3B, up ¥10.4B year-over-year.

  • EPS for the interim period was ¥43.50, down from ¥91.20 year-over-year.

Outlook and guidance

  • Full-year FY2025 net sales forecast revised to ¥840.0B (+1.6% YoY); operating income forecast at ¥75.0B (-11.8%).

  • Net income forecast for FY2025 is ¥33.0B, up ¥1.3B year-over-year.

  • Dividend forecast maintained at ¥54 per share; share buyback up to ¥30.0B (22M shares) in progress.

  • Forecasts based on exchange rates of ¥149/USD and ¥166/EUR, with caution due to global uncertainties.

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Frequently asked questions

Kuraray Co., Ltd. is a Japanese manufacturer specializing in chemicals, resins, fibers, and textiles. The company develops and commercializes products such as polyvinyl alcohol (PVA) resin and film, polyvinyl butyral (PVB) resin and film, ethylene vinyl alcohol (EVOH) resin and film, methacrylic resin, isoprene chemicals, elastomers, and polyamide resin. Their fiber and textile offerings include synthetic fibers, man-made leather, nonwoven fabrics, hook-and-loop fasteners, and polyester fibers. Additionally, Kuraray produces medical products, activated carbon, and high-performance membranes and systems for water treatment. Kuraray Co., Ltd. is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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