Kuraray (3405) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 1.4% year-over-year to ¥194.8 billion, but operating income dropped 35.2% to ¥18.7 billion and net income attributable to owners fell 44.4% to ¥12.0 billion.

• Global economic conditions were mixed, with stable demand in Japan, slowing U.S. consumption, and sluggish European and Chinese markets.

Financial highlights

• Ordinary income decreased to ¥17.8 billion from ¥27.9 billion year-over-year.

• Gross profit fell to ¥63.6 billion from ¥72.0 billion, and EPS dropped to ¥37.07 from ¥64.56.

• Comprehensive income turned negative at ¥-15.4 billion, mainly due to foreign currency translation losses.

• Yen depreciated slightly against USD and EUR compared to the previous year.

Outlook and guidance

• FY2025 full-year forecast unchanged: net sales ¥860.0 billion, operating income ¥90.0 billion, net income ¥45.0 billion.

• Interim and full-year dividend forecast maintained at ¥27 and ¥54 per share, respectively.

• Segment forecasts: Vinyl Acetate and Functional Materials expected to grow, Isoprene and Fibers & Textiles to remain challenged.

• No quantitative impact from U.S. tariff policy included in forecasts; exchange rate assumptions revised.