Teijin (3401) Q2 2025 earnings summary

Executive summary

• First-half revenue rose ¥35.3B YoY to ¥507.5B, and adjusted operating income increased ¥7.2B to ¥18.6B.

• Net loss attributable to owners of parent was ¥53.4B; a ¥57.8B impairment, mainly on North American composites assets, drove operating income to -¥47.7B.

• IFRS was adopted from FY2024, with adjusted operating income used as a key metric and prior periods restated for comparison.

• FY2024 guidance targets ¥25B profit, ¥28B adjusted operating income and a ¥50 annual dividend; guidance reflects the INFOCOM sale gain and composites impairment.

Financial highlights

• First-half revenue was ¥507.5B (+7.5% YoY), adjusted operating income ¥18.6B (+62.7%), and EBITDA ¥55.6B (+11.8%).

• Gross profit declined to ¥78.6B from ¥108.1B; operating income fell to -¥47.7B from ¥1.8B, reflecting impairment losses.

• Net loss per share was ¥277.06, compared with ¥10.17 in the prior-year period.

• Cash and cash equivalents were ¥110.1B at period end, down from ¥123.2B at March 31, 2024; free cash flow was -¥7.5B.

• Operating cash flow was ¥23.2B, investing cash flow -¥30.7B and financing cash flow ¥34.7B.

Outlook and guidance

• FY2024 revenue forecast is ¥1,010B (+5.2% YoY); adjusted operating income is ¥28B, up ¥6B YoY and ¥5B versus prior guidance.

• Profit attributable to owners of parent is forecast at ¥25B, with basic EPS of ¥129.78; the forecast includes a ¥101.5B INFOCOM sale gain.

• Annual dividend forecast rose to ¥50 per share from ¥30; FY2024 ROE is forecast at 6%.

• Full-year free cash flow is projected at ¥140B, with D/E expected to improve to 1.0.

• FY2024 EBITDA is forecast at ¥100B, with CAPEX of ¥70B and R&D expenses of ¥31B.