Toyobo Co (3101) Q2 2026 earnings summary

Executive summary

• Operating profit for H1 FY 3/26 rose 70.1% year-over-year to ¥11.8 bn, with net profit at ¥5.7 bn, driven by strong industrial film and improved packaging film earnings.

• Net sales for H1 FY 3/26 declined 2.5% year-over-year to ¥204.0 bn, while ordinary profit rose 216.3% to ¥10.1 bn.

• Comprehensive income reached ¥8.0 bn, up 298.4% year-over-year.

• Upward revision of full-year forecasts: operating profit expected at ¥23.0 bn and net profit at ¥6.5 bn, reflecting robust demand and segment improvements.

Financial highlights

• Gross profit margin increased to 24.8% in H1 FY 3/26 from 22.6% a year earlier.

• EBITDA for H1 FY 3/26 was ¥23.6 bn, up 30.5% year-over-year.

• Free cash flow turned positive at ¥10.4 bn, a ¥17.7 bn improvement year-over-year.

• Net profit per share rose to ¥64.98 from ¥1.29 year-over-year.

• Total assets stood at ¥609.6 bn, down 1.3% from March 31, 2025; net assets increased 1.2% to ¥234.8 bn.

Outlook and guidance

• Full-year FY 3/26 net sales forecast at ¥425.0 bn (+0.7% year-over-year), operating profit at ¥23.0 bn (+38.1%), and net profit at ¥6.5 bn (+224.5%).

• Net profit per share for the full year is projected at ¥73.69.

• Dividend forecast remains unchanged at ¥40.00 per share.

• Management targets early recovery of operating profit to ¥30.0 bn and ROE of 5%, aiming for ROE over 8% by FY 3/31.