Toray Industries (3402) investor relations material

Executive summary

• Revenue for FY ended March 2026 rose 0.9% year-over-year to ¥2,585.1 billion, while core operating income declined 0.6% to ¥141.9 billion and profit attributable to owners increased 2.1% to ¥79.5 billion.

• Operating income dropped 23.7% to ¥97.2 billion, mainly due to an impairment loss in the battery separator film business at a Korean subsidiary.

• Comprehensive income surged to ¥249.4 billion, up 392.7% year-over-year, driven by significant gains in other comprehensive income.

• Dividend per share increased to ¥20 for FY ended March 2026, with a further rise to ¥26 planned for FY ending March 2027, including a commemorative dividend.

• FY ending March 2027 is forecasted to see revenue of ¥2,830 billion and core operating income of ¥160 billion, driven by growth business fields and structural reforms.

Financial highlights

• Gross profit increased to ¥520.0 billion from ¥505.9 billion year-over-year.

• Free cash flow was positive at ¥144.8 billion.

• Total assets increased to ¥3,477 billion, total liabilities decreased to ¥1,549.1 billion, and total equity rose to ¥1,927.8 billion.

• D/E ratio stood at 0.5 and interest-bearing liabilities were ¥905.6 billion.

• Equity ratio at year-end was 51.8%.

Outlook and guidance

• FY ending March 2027 expects revenue of ¥2,830 billion (+9.5%), core operating income of ¥160 billion (+12.7%), and profit attributable to owners of ¥90 billion (+13.2%).

• EPS is projected to rise to ¥61.82, and dividend payout ratio to 42%.

• Capital expenditures for FY ending March 2027 are expected at ¥160 billion, depreciation and amortization at ¥140 billion, and R&D at ¥86–108.5 billion.

• Guidance factors in risks from Middle East tensions, global economic uncertainties, and raw material price volatility.

• Revenue and operating income are projected to increase across all segments.