Teijin (3401) Q3 2025 earnings summary

Executive summary

• Focus on transforming the business portfolio and restoring profitability by 2024–2025, with a return to high-quality, stable production in the materials business and a renewed emphasis on healthcare.

• Revenue for FY2024 3Q increased by ¥47.3 billion year-over-year, with adjusted operating income up ¥8.2 billion and ROIC improving to 2.9%. Profit attributable to owners of parent surged by ¥40.3 billion, mainly from the sale of INFOCOM shares.

• Strategic review of underperforming businesses, with divestment decisions for Infocom and North American composites, and a shift toward strengthening the healthcare segment.

• Segment growth was led by Materials and Fibers & Products Converting, while Healthcare saw declines due to drug price revisions and increased costs.

• The company voluntarily adopted IFRS in FY2024, impacting the calculation of adjusted operating income and other financial metrics.

Financial highlights

• FY2024 3Q revenue: ¥756.1 billion (+6.7% YoY); adjusted operating income: ¥25.6 billion (+46.7% YoY); profit attributable to owners of parent: ¥51.0 billion (+376.6% YoY).

• Healthcare business achieved overall sales of JPY 150 billion, with JPY 22.8 billion in annual sales from diabetes drugs acquired in 2021.

• EBITDA for 3Q: ¥79.6 billion (+5.8% YoY); depreciation & amortization: ¥54.4 billion (-7.6% YoY).

• ROE improved to 15.6% (from 3.6% YoY); ROIC rose to 2.9% (from 1.8%).

• Free cash flow turned positive at ¥100.0 billion, mainly due to the sale of INFOCOM shares.

Outlook and guidance

• Medium-term plan targets sustainable growth, business structure transformation, and product acquisition, with a focus on rare and intractable diseases.

• 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: ¥25.0 billion (vs. -¥11.7 billion in FY2023).

• Dividend forecast unchanged at ¥50 per share, a ¥20 increase YoY.

• No change to previous outlook; D/E ratio expected to improve to 0.9.

• Future vision includes expanding into rare diseases, overseas markets, and integrating pharmaceuticals with home healthcare services.