Kuraray (3405) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2025, decreased 3.5% year-over-year to ¥593,424 million, with operating income down 37.3% to ¥46,358 million and net income attributable to owners of the parent down 51.1% to ¥22,784 million, mainly due to inventory valuation differences and lower sales volume.

• Global economic uncertainty, U.S. tariff policies, and weak overseas demand contributed to the challenging business environment.

Financial highlights

• Gross profit fell from ¥207,570 million to ¥184,454 million year-over-year.

• Net income per share dropped to ¥71.35 from ¥140.83 year-over-year.

• Comprehensive income declined sharply to ¥9,103 million from ¥51,598 million year-over-year.

• Equity ratio decreased to 56.3% as of September 30, 2025, from 59.2% at the end of 2024.

• Total assets increased slightly to ¥1,294.0 billion.

Outlook and guidance

• Full-year net sales forecast revised downward to ¥810,000 million, operating income to ¥60,000 million, and net income attributable to owners of the parent to ¥23,000 million, reflecting a 3.6% to 30.3% decrease from previous guidance.

• Net income per share for the full year is projected at ¥74.66.

• Dividend forecast remains unchanged, with annual dividend of ¥54 per share planned.

• Assumptions include average exchange rates of ¥149/USD and ¥168/EUR.