Toray Industries
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Toray Industries (3402) investor relations material

Toray Industries Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary11 Feb, 2026

Executive summary

  • Core operating income for the nine months ended December 2025 decreased 3.4% year-over-year to ¥105.1 billion, mainly due to weak Performance Chemicals and Carbon Fiber Composite Materials, despite robust Fibers & Textiles and Environment & Engineering segments.

  • Profit attributable to owners of parent dropped 46.6% year-over-year to ¥40.2 billion, impacted by significant impairment losses in the battery separator film business at a Korean subsidiary.

  • Revenue for the nine months ended December 31, 2025, was ¥1,919.5 billion, nearly flat year-over-year (-0.2%).

  • The global economic environment was mixed, with a strong U.S. economy, a slowing Europe, a stalled Chinese recovery, and gradual growth in Japan, amid policy uncertainties.

Financial highlights

  • Operating income dropped 31.6% year-over-year to ¥71.0 billion, and basic earnings per share declined to ¥26.53 from ¥47.00.

  • Comprehensive income rose 46.5% to ¥172.3 billion, driven by exchange differences on translation.

  • Free cash flow for the nine months was ¥14.1 billion, down from ¥88.3 billion the previous year.

  • Capital expenditures decreased to ¥102.7 billion, while R&D expenditures rose to ¥54.4 billion.

  • Net cash provided by operating activities fell to ¥76.4 billion from ¥147.2 billion year-over-year.

Outlook and guidance

  • Full-year core operating income is forecast to rise 5.1% year-over-year to ¥150.0 billion, unchanged from the previous forecast.

  • Revenue for the fiscal year ending March 2026 is projected at ¥2,600.0 billion (+1.4% year-over-year).

  • Dividend per share is expected to increase to ¥20.00, with a payout ratio of 37%.

  • The assumed exchange rate for forecasts from January 2026 onwards is ¥155.0 to the U.S. dollar.

  • Growth is anticipated in Fibers & Textiles and Environment & Engineering, while Performance Chemicals and Carbon Fiber Composite Materials face continued headwinds.

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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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