Teijin (3401) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥243,117 million, down 4.8% YoY; adjusted operating income fell 24.5% to ¥7,847 million, mainly due to Materials maintenance and aramid restructuring costs.

• Net loss attributable to owners was ¥740 million, versus prior-year profit of ¥4,451 million.

Financial highlights

• EBITDA was ¥23.2 billion, down ¥6.2 billion YoY; adjusted operating income margin declined to 3.2%.

• Operating income fell to ¥2,295 million from ¥8,041 million, while profit before tax was ¥62 million versus ¥8,389 million.

• Financial income and costs worsened ¥1.9 billion YoY, mainly from foreign-exchange losses as the prior-year benefit from yen depreciation faded.

• Structural reform costs totaled ¥4.1 billion, including aramid measures, closure of the Arnhem specialty pulp mill and welfare-facility impairments.

• Operating cash flow increased to ¥16,622 million from ¥8,631 million; free cash flow improved to -¥1.9 billion from -¥8.4 billion.

Outlook and guidance

• FY2025 revenue forecast is ¥860 billion, down ¥145.5 billion YoY, largely due to the North American Composites exit; adjusted operating income guidance remains ¥35 billion, up ¥7.4 billion YoY.

• Profit attributable to owners is forecast at ¥12 billion, down ¥16.3 billion YoY; annual dividend guidance remains ¥50 per share.

• Materials outlook: revenue ¥330 billion and adjusted operating income ¥8 billion; cost reforms and transfers are expected to recover ¥9 billion against a ¥7 billion negative spread impact.

• Fibers and Products Converting outlook: revenue ¥350 billion and adjusted operating income ¥18 billion, broadly flat YoY; Industrial Materials is expected to remain strong.

• Health Care outlook: revenue ¥135 billion and adjusted operating income ¥12.5 billion; Other businesses forecast revenue of ¥45 billion and adjusted operating income of ¥4.5 billion.