Kuraray (3405) Q4 2026 earnings summary

Executive summary

• Operating and net income declined in FY2025 due to lower sales volumes, negative inventory valuation, and impairment losses in the Isoprene and elastomer segments.

• The company advanced its medium-term management plan, focusing on production optimization, business portfolio restructuring, sustainability, innovation, and organizational transformation.

Financial highlights

• FY2025 net sales were ¥808.4 billion, down 2.2% year-over-year; operating income was ¥58.9 billion, down 30.8%; net income attributable to owners was ¥7.5 billion, a 76.5% decrease.

• Ordinary income fell to ¥51.5 billion from ¥81.5 billion in FY2024.

• Free cash flow dropped to ¥0.5 billion from ¥62.3 billion in FY2024.

• Gross profit fell to ¥246,508 million from ¥267,520 million year-over-year.

• Equity ratio decreased to 57.0% at year-end 2025.

Outlook and guidance

• FY2026 forecasts: net sales ¥850.0 billion (+5.1%), operating income ¥70.0 billion (+18.9%), net income ¥40.0 billion (+435.6%).

• ROE and ROIC are expected to improve to 5% and 6%, respectively, in FY2026.

• CAPEX (decision basis) is set at ¥75.0 billion, down from ¥101.0 billion in FY2025.

• Annual dividend for 2026 is planned at ¥64 per share, including a ¥10 commemorative dividend.