Toda Kogyo is in the midst of a business reorganisation and is restructuring its operations under Vision2026. While it posted a loss for the fiscal year ended March 2025, it has indicated a policy of aiming to return to profitability in the fiscal year ending March 2026.
Toda Kogyo has established the Vision2026 medium-term management plan and indicated a policy of reorganising its operations into 4 categories: magnet materials, dielectric materials, soft magnetic materials and battery materials. It has positioned electronic materials as a growth driver and is pursuing a strategy of allocating resources primarily to highly profitable areas. The company is currently in a transitional phase of business reorganisation and is laying the groundwork for future growth. Electronic materials are expected to account for a growing share of shipments.
Although the fiscal year ended March 2025 was unprofitable, overall conditions are improving on the strength of the electronic materials segment and rationalisation. In particular, growing demand for magnet materials and dielectric materials is expected to lift sales, while TAM-related losses are expected to decline in the next fiscal year, supporting a recovery in profit. Although the dissolution and liquidation of TAM and the recognition of losses had an impact, expectations of a return to profitability have become a focus of market attention.
Strengths include rising demand for magnet materials and dielectric materials as AI adoption and the shift to electric vehicles expand, while increased data-centre investment is also expected to provide support. Development of environmentally conscious materials is progressing, with a broad range of technologies being deployed to help reduce emissions and improve energy efficiency. Concentrating resources in these growth areas is expected to support a medium- to long-term recovery in earnings.