Teijin (3401) Q4 2026 earnings summary

Executive summary

• FY2025 revenue declined to JPY 873.2 billion, with adjusted operating income down to JPY 25.8 billion, mainly due to divestitures and lower performance in Materials; Healthcare and Fibers & Products remained steady.

• Net loss attributable to owners of parent was JPY 88.0 billion, primarily from impairment losses in aramid, healthcare, and carbon fibers.

• Major divestitures included the North American composites business and aramid paper business.

• Healthcare segment improved adjusted operating income, driven by growth in rented home medical devices and pharmaceutical licensing income.

• Fiscal 2026 outlook projects adjusted operating income of JPY 30.0 billion and profit attributable to owners of parent at JPY 45.0 billion.

Financial highlights

• Revenue for FY2025 was JPY 873.2 billion, down JPY 132.3 billion year-on-year, mainly due to divestitures.

• Adjusted operating income declined by JPY 1.8 billion year-on-year to JPY 25.8 billion.

• EBITDA was JPY 86.1 billion; ROE was -22.1% and ROIC was 2.6%.

• Free cash flow was approximately JPY 59.7 billion, supported by working capital reductions.

• Basic EPS was -JPY 456.33, down from JPY 147.15 in FY2024.

Outlook and guidance

• FY2026 revenue forecast is JPY 850.0 billion, with adjusted operating income of JPY 30.0 billion and profit attributable to owners of parent at JPY 45.0 billion.

• ROE expected to recover to 12% and ROIC to 3% in FY2026.

• Annual dividends planned at JPY 50 per share, unchanged.

• Dividend payout ratio forecast at 21% for FY2026.