Teijin (3401) Q1 2027 earnings summary

Executive summary

• Adjusted operating income for Q1 FY2026 rose to ¥12.3 billion, up ¥4.5 billion year-on-year, driven by accelerated shipments, price increases, and delayed cost impacts, despite a revenue decline due to the transfer of the composites business in North America.

• Profit attributable to owners of parent surged to ¥45.1 billion from a loss of ¥740 million in Q1 FY2025, mainly due to the sale of the Aramid Paper business and affiliates.

• Comprehensive income reached ¥55,750 million, up from ¥5,438 million year-over-year.

• Structural reform in the pharmaceutical business included a contract to transfer sales functions for seven long-listed drugs.

Financial highlights

• Revenue for Q1 FY2026 was ¥221.9 billion, down ¥21.2 billion year-on-year, reflecting the transfer of the composites business in North America.

• Non-recurring items totaled ¥47.8 billion, mainly from gains on business sales and asset disposals.

• Free cash flow improved significantly to ¥53.6 billion, supported by proceeds from the Aramid Paper business sale.

• ROE improved to 46.3% (from -0.7%), and ROIC to 5.0% (from 2.8%).

• Basic earnings per share improved to ¥233.81 from a loss of ¥3.84 year-over-year.

Outlook and guidance

• FY2026 revenue forecast is ¥900.0 billion, up 3.1% year-over-year, reflecting FX and price pass-through effects.

• Adjusted operating income forecast remains at ¥30.0 billion, with profit attributable to owners of parent at ¥45.0 billion and basic EPS of ¥233.26.

• Dividend forecast unchanged at ¥50 per share (interim: ¥25, year-end: ¥25).

• Segment AOI outlooks: Apparel & Industries ¥19 billion, Healthcare & Life Solutions ¥10 billion, Electronics & Energy ¥15 billion, Specialty Materials ¥3 billion.