Toray Industries (3402) Q4 2026 earnings summary

Executive summary

• FY Mar/26 revenue increased 0.9% to ¥2,585.1B, while core operating income declined 0.6% to ¥141.9B.

• Profit attributable to owners rose 2.1% to ¥79.5B, and EPS increased to ¥52.96.

• Dividend per share increased to ¥20, with a further rise to ¥26 planned for FY Mar/27, including a commemorative dividend.

• Operating income dropped 23.7% to ¥97.2B, mainly due to an impairment loss in the battery separator film business.

• Comprehensive income surged to ¥249.4B, up 392.7% year-over-year, driven by gains in other comprehensive income.

Financial highlights

• Core operating margin was 5.5%, down 0.1 points year-over-year.

• ROIC improved to 4.7%, ROE remained at 4.5%, and ROA was 4.2%.

• Free cash flow was ¥144.8B, down from ¥191.8B the previous year.

• D/E ratio remained stable at 0.50.

• Cash and cash equivalents at year-end were ¥265.3B, up from ¥237.3B.

Outlook and guidance

• FY Mar/27 revenue forecast is ¥2,830B (+9.5%), with core operating income projected at ¥160B (+12.7%).

• Profit attributable to owners expected to reach ¥90B (+13.2%), and EPS to ¥61.82.

• Dividend payout ratio forecast to rise to 42%.

• Guidance factors in risks from Middle East tensions, global economic uncertainties, and raw material price increases.

• Outlook includes business expansion in growth fields and structural reforms.