Toray Industries (3402) investor relations material

Executive summary

• Core operating income for 1Q FY Mar/27 rose 66.6% year-over-year to 48.4 billion yen, driven by strong segment recoveries and effective cost management.

• Revenue increased 14.0% year-over-year to 679.0 billion yen, with all major segments contributing to growth.

• Profit attributable to owners of parent surged 82.3% year-over-year to 31.3 billion yen.

• 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

• Gross profit increased to 147.3 billion yen from 120.8 billion yen year-over-year, with operating income up to 47.3 billion yen from 27.5 billion yen.

• Core operating margin improved by 2.3 points to 7.1% year-over-year.

• Profit before tax increased 73.8% year-over-year to 49.1 billion yen.

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

• Comprehensive income for the quarter was 35.8 billion yen, up 149.9% year-over-year.

Outlook and guidance

• First half FY Mar/27 revenue forecast revised upward to 1,390.0 billion yen (+12.6% year-over-year).

• Core operating income forecast for the first half raised to 87.0 billion yen (+28.2% year-over-year).

• Profit attributable to owners of parent projected at 45.0 billion yen (+21.8% year-over-year).

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

• Full-year forecast for March 31, 2027: revenue 2,830.0 billion yen (+9.5%), core operating income 160.0 billion yen (+12.7%), profit attributable to owners of parent 90.0 billion yen (+13.2%).