Teijin (3401) Q2 2025 earnings summary

Executive summary

• Revenue for FY2024 1H increased by 7.5% year-over-year to ¥507.5 billion, driven by Materials and Fibers & Products Converting segments.

• Adjusted operating income rose 62.7% year-over-year to ¥18.6 billion, reflecting profitability improvements in composites and higher resin & plastic processing sales.

• Net loss attributable to owners of parent was ¥53.4 billion, mainly due to a large impairment loss in North American composites.

• Voluntary adoption of IFRS from FY2024, with adjusted operating income as a new key metric and prior periods restated.

Financial highlights

• FY2024 1H revenue: ¥507.5 billion (+7.5% YoY); adjusted operating income: ¥18.6 billion (+62.7% YoY).

• EBITDA for 1H: ¥55.6 billion (+11.8% YoY); ROIC improved to 3.3% from 1.8%.

• Operating income fell to ¥-47.7 billion due to non-recurring impairment losses.

• Cash and cash equivalents at period end were ¥110.1 billion, down from ¥123.2 billion at March 31, 2024.

• Free cash flow for 1H: ¥-7.5 billion; net cash provided by operating activities was ¥23.2 billion, while investing activities used ¥30.7 billion.

Outlook and guidance

• FY2024 revenue forecast: ¥1,010.0 billion (+5.2% YoY); adjusted operating income: ¥28.0 billion (+27.5% YoY).

• Profit attributable to owners of parent forecast at ¥25.0 billion, reversing prior year loss; basic EPS of ¥129.78.

• Annual dividend forecast raised to ¥50/share (from ¥30/share in FY2023).

• Free cash flow projected at ¥140.0 billion for FY2024.

• D/E ratio expected to improve to 1.0 by year-end.