Teijin (3401): FY2025 Results Summary — Net Loss on Impairments, Return to Profit Forecast for FY2026

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Teijin Limited (3401) announced its consolidated results for FY2025 on May 11, 2026. Revenue was ¥873.2 billion, a decrease of ¥132.3 billion compared with FY2024, mainly due to the transfer of the composites business in North America. Adjusted operating income was ¥25.8 billion, down ¥1.8 billion. Loss attributable to owners of parent was ¥88.0 billion, mainly due to impairment losses in the aramid and Healthcare businesses. For FY2026, the company forecasts adjusted operating income of ¥30.0 billion and profit attributable to owners of parent of ¥45.0 billion.

Consolidated Results (Full-Year Actual)

The Healthcare Business saw an increase in adjusted operating income, mainly due to growth in the number of rented home medical devices and pharmaceutical licensing income, and the Fiber & Products Converting Business remained firm. The Materials Business saw a decrease due to large-scale periodic maintenance and a deteriorated sales mix, and profit of the aramid paper business was excluded. Impairment losses were recorded in the aramid business (¥50.4 billion), the Healthcare Business (¥25.4 billion), and the carbon fibers business (¥8.3 billion). ROE was (22.1%) and ROIC was 2.6%.

Item (Billions of Yen)	FY25	FY24	Difference
Revenue	873.2	1,005.5	-132.3
Adjusted operating income	25.8	27.6	-1.8
Financial income and costs	(5.3)	(7.3)	+2.0
Non-recurring items	(93.8)	(94.7)	+0.9
Profit (loss) from discontinued operations	–	106.1	-106.1
Profit (loss) attributable to owners of parent	(88.0)	28.3	-116.4
ROE	(22.1%)	6.7%	-28.9%
ROIC	2.6%	2.6%	+0.0%

Segment Results

Revenue decreased by ¥132.3 billion, mainly due to the transfer of the composites business in North America. The Healthcare Business saw an increase in adjusted operating income; however, overall adjusted operating income decreased by ¥1.8 billion, mainly due to the decreases in the Materials and Others segments.

Segment	Metric (Billions of Yen)	FY25	FY24	Difference
Materials	Revenue	338.6	459.3	-120.7
Materials	Adjusted operating income	0.1	6.0	-5.9
Fibers & Products Converting	Revenue	350.1	351.9	-1.9
Fibers & Products Converting	Adjusted operating income	17.1	17.8	-0.7
Healthcare	Revenue	138.6	137.0	+1.6
Healthcare	Adjusted operating income	13.4	5.7	+7.7
Others	Revenue	46.0	57.3	-11.3
Others	Adjusted operating income	4.6	7.1	-2.5
Elimination and Corporate	Adjusted operating income	(9.4)	(9.0)	-0.4
Total	Revenue	873.2	1,005.5	-132.3
Total	Adjusted operating income	25.8	27.6	-1.8

FY2026 Forecast

For FY2026, revenue is forecast to decrease by ¥23.2 billion, adjusted operating income is forecast to increase by ¥4.2 billion, and profit (loss) attributable to owners of parent is forecast to increase by ¥133.0 billion. The company notes that the impact of the Middle East situation has not been reflected in the outlook. From FY2026, Teijin revised its disclosure segment classifications by customer domain to promote the Customer-Driven business, which will be the core of the Medium-Term Management Plan 2026-2028; the new segments are Apparel & Industries, Healthcare & Life Solutions, Electronics & Energy, Specialty Materials, and Others.

Item (Billions of Yen)	FY26 Outlook	FY25 Actual	Difference
Revenue	850.0	873.2	-23.2
Adjusted operating income	30.0	25.8	+4.2
Profit (loss) attributable to owners of parent	45.0	(88.0)	+133.0
ROE	12%	(22.1%)	+34%
ROIC	3%	2.6%	+0%
D/E ratio (capital adjustment)	0.7	0.78	-0.1
Dividends per share (Yen)	50	50	–
Dividend Payout Ratio	21%	–	–

By the new segment classification, Apparel & Industries is expected to increase revenue as the effects of the management integration with Asahi Kasei Advance begin to materialize in the second half, while Healthcare & Life Solutions is expected to see a decrease in revenue due to the narrowing to rare/intractable disease areas in the pharmaceutical business. FY2025 figures below are preliminary, pending audit and final calculation, and Specialty Materials FY2025 results include the composites business in North America (transfer completed on July 1, 2025).

Segment	Metric (Billions of Yen)	FY26 Outlook	FY25 Actual	Difference
Apparel & Industries	Revenue	400.0	350.1	+49.9
Apparel & Industries	Adjusted operating income	19.0	17.1	+1.9
Healthcare & Life Solutions	Revenue	110.0	138.6	-28.6
Healthcare & Life Solutions	Adjusted operating income	10.0	13.4	-3.4
Electronics & Energy	Revenue	150.0	149.9	+0.1
Electronics & Energy	Adjusted operating income	15.0	18.9	-3.9
Specialty Materials	Revenue	170.0	212.8	-42.8
Specialty Materials	Adjusted operating income	3.0	(9.0)	+12.0
Others	Revenue	20.0	21.9	-1.9
Others	Adjusted operating income	(5.0)	(3.5)	-1.5
Elimination and Corporate	Adjusted operating income	(12.0)	(11.1)	-0.9
Total	Revenue	850.0	873.2	-23.2
Total	Adjusted operating income	30.0	25.8	+4.2

Shareholder Returns

The FY2025 annual dividend was decided at ¥50 per share (interim: ¥25 per share; year-end: ¥25 per share), with no change from the previous outlook. For FY2026, the annual dividend is forecast to be ¥50 per share (interim: ¥25 per share; year-end: ¥25 per share) in light of the stable dividend, with a forecast dividend payout ratio of 21%. The dividend payout ratio for FY2025 is not shown due to the net loss.

Medium-Term Plan / Topics

To promote the Customer-Driven business, which will be the core of the Medium-Term Management Plan 2026-2028, Teijin revised its disclosure segment classifications by customer domain from FY2026. The integration of the Fiber & Products Converting Business with Asahi Kasei Advance is scheduled for October 1, 2026. Regarding the escalating tensions in the Middle East, the company expects some impact on raw materials and fuel prices as well as procurement, and states it will seek to minimize the impact through prompt and flexible measures; when the impact on performance becomes clearer, it will promptly disclose any necessary revisions to its earnings forecasts.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.