Teijin (3401) Q2 2026 earnings summary

Executive summary

• Adjusted operating income for Q2 FY2025 was ¥13.0 billion, down ¥5.6 billion year-over-year, mainly due to declines in materials and aramid businesses, large-scale maintenance, and structural reforms.

• Revenue for the six months ended September 30, 2025, was ¥451,043 million, down 11.1% year-over-year, primarily due to the transfer of the composites business in North America.

• Net loss attributable to owners of parent was ¥54,835 million, driven by impairment losses and structural reforms in the aramid business.

• The transfer of the composites business in North America and significant impairment losses in aramid (Twaron Business) notably affected results.

Financial highlights

• 1H FY2025 revenue: ¥451.0 billion (down ¥56.5 billion year-over-year); gross profit decreased to ¥64,508 million.

• Adjusted operating income: ¥13.0 billion (down ¥5.6 billion year-over-year); EBITDA: ¥44.4 billion.

• Interim loss attributable to owners of parent: ¥54.8 billion; basic EPS of ¥(284.41).

• Free cash flow improved to ¥7.7 billion from negative ¥7.5 billion year-over-year; operating cash flow increased to ¥38.9 billion.

• Net cash provided by operating activities increased to ¥38,915 million; cash and cash equivalents at period end were ¥110,947 million.

Outlook and guidance

• FY2025 annual revenue forecast is ¥860,000 million, a 14.5% decrease year-over-year.

• Adjusted operating income forecast is ¥25,000 million, down ¥10,000 million from previous guidance.

• Net loss attributable to owners of parent is projected at ¥10,000 million, with basic EPS of ¥(51.85).

• Annual dividend per share maintained at ¥50; interim dividend of ¥25/share decided.