Toyo Tanso reports Q3 FY2025 results, secures nuclear reactor graphite orders

Toyo Tanso reported Q3 FY2025 net sales of JPY34,095m, a 12.7% decrease year-on-year, with operating profit at JPY5,420m, down 41.5%. This decline was primarily attributed to a decrease in marginal profit due to volumes and product mix, and increased fixed costs including depreciation. Electronics Applications saw a 30.2% drop in sales due to wafer inventory adjustments and a slowdown in EV demand for SiC semiconductors.

In a significant development, Toyo Tanso's consolidated subsidiary secured an order from X Energy Reactor Company, LLC for graphite core structural materials for four "Xe-100" high-temperature gas-cooled reactors. This order, valued at approximately JPY5bn to JPY6bn, with an exchange rate assumption of JPY145/US$, is scheduled for delivery in 2028 and sales recording in 2027-2028. These units will be installed at Dow Inc.'s chemical plant in Texas, USA, and are supported by the U.S. Department of Energy's Advanced Reactor Demonstration Program.

Following this, an agreement was also signed with X-energy for advance payments to supply similar graphite materials for four Xe-100 units to Energy Northwest, as part of a project with Amazon. This highlights Toyo Tanso's strategic involvement in advanced nuclear energy solutions, positioning it for future growth despite current market challenges.