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Financial Results Presentation3401TEIJIN LIMITEDMaterials and Chemicals

FY2025 Results and FY2026 Earnings Outlook

In FY2025, revenue and business profit declined, while profit attributable to owners of the parent was a loss of ¥88 billion due to impairment losses and other factors. For FY2026, the company expects revenue to decline but plans to recover business profit to ¥30 billion and profit for the year to ¥45 billion.

Worth reading
59In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
42
¥100 million (year-on-year increase in FY2026 business profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFY2025 (fiscal year ended March 2026) and FY2026 outlook10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales8,732 Hundreds of millions of yen-13.2%
Operating profit-707 Hundreds of millions of yen
Ordinary income-741 Hundreds of millions of yen
Net income¥-880 100 million profit for the year attributable to owners of the parent
Selling, general and administrative expenses-2,313 Hundreds of millions of yen
Results for the three months of the current quarterFourth quarter of FY2025: revenue ¥213.3 billion, operating loss ¥16.9 billion, loss before tax for the quarter ¥18.2 billion, loss for the quarter attributable to owners of the parent ¥29.0 billion, and business profit ¥2.0 billion
Full-year earnings forecast
Revenue
8,500 Hundreds of millions of yen
Business profit
300 Hundreds of millions of yen
Profit for the period attributable to owners of the parent
450 Hundreds of millions of yen
ROE
12 %
ROIC
3 %
D/E ratio (after capital adjustments)
0.7 times
Annual Dividend
¥50 per share
Payout ratio
21 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Materials
Volume variance-85
Spread differential-90
Foreign Exchange Effects-75
Profitability improvements and other factors121
Fibers & Products
Volume variance15
Spread differential0
Foreign Exchange Effects-10
Other-12
Healthcare
Volume variance15
Selling price and mix differential-15
Profitability improvement measures20
Other57
Other
Volume variance5
Spread differential0
Foreign Exchange Effects-5
Other-24
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Full-year average exchange rate
¥/US$150
JPY/EUR176
Middle East situationImpact not incorporated
New initiatives
  • Change to a new segment structure based on customer markets
  • Management integration with Asahi Kasei Advance (scheduled for 1 October 2026)
  • Cost structure reforms and production optimization for aramid and carbon fiber
  • Securing inventories, reducing costs, and flexibly adjusting production plans in light of the situation in the Middle East
Key KPIsA metric the company considers important as a management benchmark.
  • ROE-22.1 %
    Year on year against the same period last year-28.9%
  • ROIC2.6 %
    Year on year against the same period last year0.0%
  • EBITDA861 Hundreds of millions of yen
    Year on year against the same period last year-12.4%
  • Free cash flow597 Hundreds of millions of yen
    Year on year against the same period last year-627.0%
  • Domestic sales of key pharmaceuticals (total of four diabetes treatments)178 Hundreds of millions of yen
    Year on year against the same period last year-11.0%
Segment results
Materials
Revenue
3,386 Hundreds of millions of yen-26.3%
Business profit
1 Hundreds of millions of yen-98.0%
Fibers & Products
Revenue
3,501 Hundreds of millions of yen-0.5%
Business profit
171 Hundreds of millions of yen-4.2%
Healthcare
Revenue
1,386 Hundreds of millions of yen+1.2%
Business profit
134 Hundreds of millions of yen+136.0%
Other
Revenue
460 Hundreds of millions of yen-19.7%
Business profit
46 Hundreds of millions of yen-35.6%
Medium-term management plan targets
The Medium-Term Management Plan 2026–2028 is referenced. Numerical targets and comparison with actual results: not disclosed
Financial targets
ROE
Actual results-22.1 %
Outlook12 %
ROIC
Actual results2.6 %
Outlook3 %
D/E ratio (after capital adjustments)
Actual results0.78 times
Outlook0.7 times
Equity ratio attributable to owners of the parent
Actual results39.6 %
Outlook39 %
Capital expenditures
¥596 100 million FY2025 actual
Annual Dividend
Annual¥50 per share
Interim¥25 per share
End of period¥25 per share
Payout ratio
21 %
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFY2025 (fiscal year ended March 2026) and FY2026 outlook
Net Sales8,732 Hundreds of millions of yen (YoY -13.2%)
Operating profit-707 Hundreds of millions of yen
Ordinary income-741 Hundreds of millions of yen
Net income¥-880 100 million (profit for the year attributable to owners of the parent)
Selling, general and administrative expenses-2,313 Hundreds of millions of yen
Results for the three months of the current quarterFourth quarter of FY2025: revenue ¥213.3 billion, operating loss ¥16.9 billion, loss before tax for the quarter ¥18.2 billion, loss for the quarter attributable to owners of the parent ¥29.0 billion, and business profit ¥2.0 billion
Full-year earnings forecastRevenue 8,500 Hundreds of millions of yen / Business profit 300 Hundreds of millions of yen / Profit for the period attributable to owners of the parent 450 Hundreds of millions of yen / ROE 12 % / ROIC 3 % / D/E ratio (after capital adjustments) 0.7 times / Annual Dividend ¥50 per share / Payout ratio 21 %
Segment resultsMaterials Revenue 3,386 Hundreds of millions of yen (YoY -26.3%) / Business profit 1 Hundreds of millions of yen (YoY -98.0%) / Fibers & Products Revenue 3,501 Hundreds of millions of yen (YoY -0.5%) / Business profit 171 Hundreds of millions of yen (YoY -4.2%) / Healthcare Revenue 1,386 Hundreds of millions of yen (YoY +1.2%) / Business profit 134 Hundreds of millions of yen (YoY +136.0%) / Other Revenue 460 Hundreds of millions of yen (YoY -19.7%) / Business profit 46 Hundreds of millions of yen (YoY -35.6%)
Breakdown of Factors Affecting the ChangeMaterials Volume variance -85 / Spread differential -90 / Foreign Exchange Effects -75 / Profitability improvements and other factors 121 / Fibers & Products Volume variance 15 / Spread differential 0 / Foreign Exchange Effects -10 / Other -12 / Healthcare Volume variance 15 / Selling price and mix differential -15 / Profitability improvement measures 20 / Other 57 / Other Volume variance 5 / Spread differential 0 / Foreign Exchange Effects -5 / Other -24
Key KPIsIndicator name ROE / Value -22.1 % / Year on year against the same period last year -28.9 %, Indicator name ROIC / Value 2.6 % / Year on year against the same period last year 0 %, Indicator name EBITDA / Value 861 Hundreds of millions of yen / Year on year against the same period last year -12.4 Hundreds of millions of yen, Indicator name Free cash flow / Value 597 Hundreds of millions of yen / Year on year against the same period last year -627 Hundreds of millions of yen, Indicator name Domestic sales of key pharmaceuticals (total of four diabetes treatments) / Value 178 Hundreds of millions of yen / Year on year against the same period last year -11 Hundreds of millions of yen
Assumptions Underlying the Business OutlookFull-year average exchange rate ¥/US$ 150 / JPY/EUR 176 / Middle East situation Impact not incorporated
Medium-term management plan targetsThe Medium-Term Management Plan 2026–2028 is referenced. Numerical targets and comparison with actual results: not disclosed
Financial targetsROE Actual results -22.1 % / Outlook 12 % / ROIC Actual results 2.6 % / Outlook 3 % / D/E ratio (after capital adjustments) Actual results 0.78 times / Outlook 0.7 times / Equity ratio attributable to owners of the parent Actual results 39.6 % / Outlook 39 %
Annual DividendAnnual ¥50 per share / Interim ¥25 per share / End of period ¥25 per share
Payout ratioValue 21 %
Capital expenditures¥596 100 million (FY2025 actual)
New initiativesChange to a new segment structure based on customer markets, Management integration with Asahi Kasei Advance (scheduled for 1 October 2026), Cost structure reforms and production optimization for aramid and carbon fiber, Securing inventories, reducing costs, and flexibly adjusting production plans in light of the situation in the Middle East
Items this document does not state (12)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, results were affected by lower revenue following the transfer of the North American compound molding materials business, lower Materials profit due to major scheduled maintenance and an unfavorable sales mix, and the exclusion of the Aramid Paper business from results. In FY2026, the company expects profit growth from firm sales in Apparel & Industrial Products, synergies from integration with Asahi Kasei Advance, improved operating rates for aramid and carbon fiber, and progress in structural reforms. Healthcare profit is expected to decline as the pharmaceutical business is narrowed.

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FY2025 Results and FY2026 Earnings Outlook | TEIJIN LIMITED (3401) timely disclosure | Komori