Toray Industries (3402) Q2 2026 earnings summary

Executive summary

• Revenue for the first six months ended September 2025 declined 4.6% year-over-year to JPY 1,234.3 billion, with core operating income down 14.2% to JPY 67.9 billion and profit attributable to owners of parent down 33.5% to JPY 36.9 billion, despite exceeding initial forecasts.

• Operating income and profit declined due to sluggish market conditions, inventory adjustments, and global economic uncertainties, but ongoing business structure reforms and strategic pricing were implemented.

• Share buybacks totaling JPY 100 billion were completed, with an additional JPY 50 billion buyback authorized in November 2025.

Financial highlights

• Core operating income margin decreased from 6.1% to 5.5% year-over-year.

• Free cash flow for the six months was JPY 24.2 billion, down from JPY 65.4 billion the previous year.

• Capital expenditures for the period were JPY 67.1 billion, a decrease of JPY 21.3 billion year-over-year.

• Basic earnings per share for the first half was JPY 24.23, with a forecasted full-year EPS of JPY 54.16.

• Total assets at end of September 2025: JPY 3,351 billion, with equity ratio at 51.2%.

Outlook and guidance

• Full-year revenue forecast for FY ending March 2026 is JPY 2,630.0 billion, up 2.6% year-over-year, with core operating income expected to increase to JPY 150.0 billion and profit attributable to owners of parent projected at JPY 82.0 billion.

• Dividend per share is expected to increase to JPY 20.00 for the year.

• Assumed exchange rate for the second half is JPY 145 per USD.

• Forecasts for revenue, core operating income, and profit attributable to owners remain unchanged from May 14 announcement.