Teijin revises FY2025 outlook down amid impairment losses

Teijin Limited has revised its consolidated earnings forecasts for the fiscal year ending March 31, 2026 (FY2025), citing a projected decrease in adjusted operating income by JPY 10.0 bn to JPY 25.0 bn and a substantial profit (loss) attributable to owners of parent reduction by JPY 22.0 bn to JPY (10.0) bn. This downward adjustment primarily stems from delayed performance recovery in the materials business, the transfer of the aramid paper business, and a significant impairment loss of JPY 48.4 bn on fixed assets in the aramid business.

The impairment losses were recorded in the consolidated financial statements for the six months ended September 30, 2025, with JPY 41.7 bn allocated to "cost of sales" and JPY 6.7 bn to "selling, general and administrative expenses." Despite these revisions, Teijin maintains its annual dividend forecast at JPY 50 per share (JYP 25 interim and JPY 25 year-end), emphasizing a stable and continuous dividend policy.

Revenue for FY2025 is expected to decrease by JPY 145.5 bn compared to FY2024, to JPY 860.0 bn, largely due to the transfer of the composites business in North America. Adjusted operating income is also forecast to decline by JPY 2.6 bn year-on-year to JPY 25.0 bn. The materials segment is anticipated to see a JPY 3.0 bn decrease in adjusted operating income, while healthcare is projected to increase by JPY 6.8 bn due to growth in rented CPAP devices.