Toray Industries (3402) investor relations material

Executive summary

• Operating income for Q1 2027 reached a record high, rising 66.6% year-over-year to JPY 48.4 billion, driven by front-loaded demand from Middle East tensions, recovering demand across applications, and successful cost pass-through and improvement initiatives.

• Consolidated revenue for Q1 increased 14% year-over-year to JPY 679 billion, with all major segments contributing to growth.

• Net profit attributable to owners of parent surged 82.3% year-over-year to JPY 31.3 billion.

• The company launched its Medium-Term Management Program "IGNITION 2028" to enhance economic and social value and strengthen its management foundation, focusing on ROIC as a key indicator.

• Despite global economic uncertainty from Middle East conflicts and rising raw material prices, AI and semiconductor investments supported economic activity.

Financial highlights

• Total assets at end of June 2026 were JPY 3,492.1 billion, up JPY 15.1 billion from the previous fiscal year, mainly due to higher receivables, property, plant and equipment, and retirement benefit assets.

• Total liabilities decreased by JPY 5 billion to JPY 1,544.2 billion, while total equity increased by JPY 20.1 billion to JPY 1,947.9 billion.

• Owner's equity was JPY 1,817.1 billion, interest-bearing liabilities JPY 901.1 billion, and D/E ratio 0.5.

• Free cash flow was positive at JPY 20.9 billion, up JPY 21.7 billion from the prior year.

• Capital expenditures decreased by JPY 11.2 billion to JPY 23.8 billion year-over-year; depreciation and amortization rose to JPY 34.9 billion; R&D expenditures increased to JPY 18.2 billion.

Outlook and guidance

• The consolidated forecast for the first half of FY ending March 2027 was revised upwards: revenue expected at JPY 1,390 billion (+12.6% YoY), core operating income at JPY 87 billion (+28.2%), and profit attributable to owners at JPY 45 billion (+21.8%).

• Full-year forecast for March 2027: revenue JPY 2,830 billion (+9.5%), core operating income JPY 160 billion (+12.7%), profit attributable to owners JPY 90 billion (+13.2%).

• Dividend forecast for FY2027 is JPY 26.00 per share, including a JPY 3.00 commemorative dividend.

• Full-year forecast will be reviewed after Q2 results, with exchange rate assumptions set at JPY 155 per USD for July–September.