Teijin (3401) Q1 2026 earnings summary

Executive summary

• Adjusted operating income for FY2025 1Q was ¥7.8 billion, down ¥2.6 billion year-over-year, mainly due to large-scale periodic maintenance in the Materials Business and structural reform expenses in aramid.

• Revenue for Q1 FY2025 was ¥243.1 billion, down ¥12.2 billion or 4.8% year-over-year.

• Net loss attributable to owners was ¥740 million, compared to a profit of ¥4,451 million in the prior year.

• The transfer of the North American composites business was completed July 1, 2025, with related losses already factored into the outlook.

• Comprehensive income dropped to ¥5,438 million from ¥20,358 million year-over-year.

Financial highlights

• EBITDA for FY2025 1Q was ¥23.2 billion, down ¥6.2 billion year-over-year; adjusted operating income margin declined to 3.2%.

• Operating income declined sharply to ¥2,295 million from ¥8,041 million.

• Free cash flow improved to -¥1.9 billion from -¥8.4 billion year-over-year, with operating cash flow up by ¥8.0 billion.

• Net cash provided by operating activities increased to ¥16,622 million from ¥8,631 million.

• Net cash provided by financing activities surged to ¥97,769 million from ¥44,364 million.

Outlook and guidance

• FY2025 adjusted operating income is forecast at ¥35.0 billion, up ¥7.4 billion from FY2024, with revenue expected to decrease by ¥145.5 billion due to the composites business withdrawal.

• Annual dividend forecast remains at 50 yen per share; no change from previous outlook.

• Profit attributable to owners of parent is projected at ¥12.0 billion, down ¥16.3 billion year-over-year.