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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.
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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