Teijin (3401) Q1 2027 earnings summary

Executive summary

• Adjusted operating income for FY2026 1Q rose to ¥12,307 million, up 56.8% year-over-year, despite a revenue decline mainly due to the transfer of the composites business in North America.

• Profit attributable to owners of parent surged to ¥45,106 million from a loss of ¥740 million in Q1 FY2025, driven by the completion of the aramid paper business transfer and a significant gain on sale of 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 FY2026 1Q was ¥221,943 million, down ¥21.2 billion or 8.7% year-over-year.

• Adjusted operating income increased to ¥12,307 million (+¥4.5 billion), and EBITDA rose to ¥24.7 billion (+¥1.6 billion).

• Operating income jumped to ¥59,959 million from ¥2,295 million, mainly due to a ¥45,452 million gain on sale of shares of affiliates.

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

• Net cash provided by operating activities was ¥17,254 million, up from ¥16,622 million year-over-year.

Outlook and guidance

• FY2026 revenue is forecast at ¥900,000 million (+3.1% year-over-year), with adjusted operating income of ¥30,000 million (+16.4% year-over-year).

• Profit attributable to owners of parent is projected at ¥45,000 million, a turnaround from a loss of ¥88,000 million in FY2025, with basic EPS of ¥233.26.

• Annual dividend forecast remains at ¥50/share (interim: ¥25, year-end: ¥25).