Toray Industries (3402) Q2 2025 earnings summary

Executive summary

• H1 revenue rose 7.9% YoY to ¥1,294.1B; core operating income reached a six-month record of ¥79.1B, up 62.6%, and profit attributable to owners of parent rose 92.3% to ¥55.5B.

• Results were supported by stronger demand, higher utilization and strategic pricing; U.S. and European markets recovered while China remained stagnant.

• Project AP-G 2025 continued to guide sustainable growth and operational excellence.

Financial highlights

• Reported operating income rose 78.9% YoY to ¥79.5B; profit before tax increased 58.8% to ¥77.8B.

• Core operating income margin improved 2.1 percentage points to 6.1%.

• Special items were a net positive ¥0.4B, improving ¥4.6B YoY, mainly from gains on fixed-asset sales or disposals and lower product warranty provisions.

• Free cash flow improved to ¥65.4B from ¥8.3B; capital expenditures rose ¥33.3B YoY to ¥88.4B.

• Basic EPS increased to ¥34.66 from ¥18.03.

Outlook and guidance

• FY2025 revenue forecast revised to ¥2,590.0B, up 5.1% YoY.

• Core operating income forecast raised to ¥145.0B, ¥10.0B above the initial forecast and up 41.3% YoY.

• Profit attributable to owners of parent forecast at ¥88.0B; basic EPS forecast raised to ¥54.93.

• Dividend maintained at ¥18.00 per share; second-half exchange-rate assumption is ¥140 per U.S. dollar.