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Toray Industries (3402) investor relations material

Toray Industries Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary8 Aug, 2025

Executive summary

  • Revenue for Q1 FY2026 declined 6.6% year-over-year to JPY 595.8B, with core operating income down 20.9% to JPY 29.1B and net profit falling 36.1% to JPY 17.2B, mainly due to weak market conditions and U.S. tariff impacts.

  • The Japanese economy showed gradual recovery, but global uncertainties, especially U.S. policy shifts and tariffs, weighed on demand and trade.

  • Comprehensive income dropped sharply to JPY 14.3B from JPY 116.8B year-over-year, mainly due to negative exchange differences.

  • Annual dividend for FY2026 is expected at JPY 20 per share, up by 2 yen from the previous year, with share buybacks totaling JPY 80B (82M shares) as of July 2025.

Financial highlights

  • Consolidated revenue for Q1 was JPY 595.8B (down 6.6% year-over-year); core operating income was JPY 29.1B (down 20.9%).

  • Net profit attributable to owners of parent declined 36.1% to JPY 17.2B.

  • Free cash flow was negative at JPY 0.8B, down from JPY 20.6B in the prior year.

  • Operating income dropped 27.8% to JPY 27.5B; basic EPS fell to JPY 11.16 from JPY 16.77 year-over-year.

  • Total assets increased to JPY 3,299.1B, while equity ratio declined to 50.8%.

Outlook and guidance

  • FY2026 full-year revenue forecast is JPY 2,670B (up 4.2% year-over-year), with core operating income projected at JPY 150B and net profit at JPY 82B.

  • Guidance remains unchanged from May 2025, factoring in a JPY 15B negative impact from U.S. tariffs.

  • Dividend forecast for FY2026 is JPY 20 per share, with a payout ratio of 37%.

  • Assumed exchange rate from July is JPY 145 per USD.

  • The company expects global economic slowdown due to U.S. tariffs and trade policy uncertainty.

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Q2 202614 Nov, 2025
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Frequently asked questions

Toray Industries, Inc. is a diversified Japanese company specializing in advanced materials and technology-driven products. Its business segments include Fibers & Textiles, which produces apparel and industrial materials; Plastics & Chemicals, focusing on resins, films, and fine chemicals; and Carbon Fiber Composite Materials, essential for aerospace and other industries. The company also operates in IT-related Products, offering components like films for electronic displays, and in Environment & Engineering, providing water treatment systems and other environmental solutions. Additionally, Toray has a Life Science segment that develops medical products. The company is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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