Teijin Limited (TSE: 3401) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS. Revenue declined 13.2% year-on-year to ¥873,190 million from ¥1,005,471 million, with the drop driven in part by changes in the scope of consolidation. Business profit — Teijin's headline operating metric, defined as operating profit plus equity-method investment results and excluding non-recurring items — eased 6.6% to ¥25,781 million from ¥27,594 million. The operating line remained in the red, with an operating loss of ¥70,714 million (a slight improvement from the ¥71,828 million loss a year earlier) and a pre-tax loss of ¥74,060 million.
A swing back into the red
The most consequential change at the bottom line was the swing from profit to loss. Net loss attributable to owners of the parent was ¥88,003 million, reversing a ¥28,347 million profit in FY3/2025, while the loss for the period totalled ¥87,920 million against a ¥30,310 million prior-year profit. Basic loss per share was ¥456.33, compared with positive EPS of ¥147.15 a year earlier. The gap between the modest improvement in the operating loss and the sharp deterioration at net level reflects the absence of the prior year's below-the-line gains and the impact of impairments and the portfolio restructuring recorded during the year. Total comprehensive income was a loss of ¥57,133 million versus a ¥29,055 million gain.
Portfolio reshaping across the segments
Teijin operates across four reporting domains — Materials (high-performance fibers such as aramid and carbon fiber, plus resins and films), Healthcare (pharmaceuticals and home healthcare), Fibers & Products Converting, and IT. The year was defined by an active reshaping of that portfolio: the group removed two subsidiaries from consolidation — Teijin Nakashima Medical Co., Ltd. in the healthcare-devices space and Teijin Automotive Technologies NA Holdings Corp., the North American composite-components holding company — as Teijin pares back lower-margin and capital-intensive operations and concentrates on higher-value materials and healthcare. Those deconsolidations are a key reason revenue fell back below the ¥900 billion mark even as business profit was held close to the prior year.
Balance sheet
The balance sheet contracted over the year, reflecting both the divestitures and the year's losses. Total assets fell to ¥920,115 million from ¥1,061,272 million, while total equity declined to ¥368,631 million from ¥438,541 million. Equity attributable to owners of the parent eased to ¥364,461 million from ¥431,378 million, leaving the parent equity ratio at 39.6%, down from 40.6%. Book value per share fell to ¥1,889.22 from ¥2,238.40. Shares outstanding were essentially unchanged at 197,953,707 (including treasury), with the weighted-average count at 192,850,305.
Cash flow
Operating cash flow improved markedly to ¥98,654 million from ¥69,843 million, underscoring that the headline loss was driven by non-cash impairment and restructuring items rather than by an erosion of underlying cash generation. Investing activities swung to an outflow of ¥38,956 million from a ¥52,517 million inflow the prior year (when asset sales had boosted the line), and financing activities used ¥73,251 million, a smaller outflow than the ¥134,459 million used a year earlier. Period-end cash and cash equivalents stood at ¥104,474 million, broadly steady against ¥107,538 million.
Dividend held at ¥50
Despite the loss, Teijin maintained its annual dividend at ¥50.00 per share (¥25.00 interim + ¥25.00 year-end), unchanged from the prior year, with total cash dividends of ¥9,645 million. Management guided the FY3/2027 dividend to be held flat again at ¥50.00 per share, signalling confidence in the planned earnings recovery and a commitment to a stable shareholder return even through the trough year.
FY27 guidance: a return to profit
For FY3/2027, management guides to revenue of ¥850,000 million (-2.7%) — a further modest decline reflecting the full-year effect of the deconsolidations — but a clear return to profitability across the rest of the income statement. Business profit is guided up 16.4% to ¥30,000 million, operating profit is forecast to swing back to a positive ¥70,000 million (from a ¥70,714 million loss), and net profit attributable to owners is guided to ¥45,000 million, implying basic EPS of ¥233.26. The recovery rests on the absence of the one-off impairment and restructuring charges that weighed on FY3/2026 and on the leaner, materials- and healthcare-focused portfolio left after the year's divestitures.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 873,190 | 1,005,471 | -13.2% |
| Business profit (¥ million) | 25,781 | 27,594 | -6.6% |
| Operating profit/(loss) (¥ million) | -70,714 | -71,828 | n.m. |
| Pre-tax profit/(loss) (¥ million) | -74,060 | -78,038 | n.m. |
| Net profit/(loss) attrib. to owners (¥ million) | -88,003 | 28,347 | n.m. |
| Basic EPS (¥) | -456.33 | 147.15 | n.m. |
| Parent equity ratio | 39.6% | 40.6% | -1.0pp |
| Operating cash flow (¥ million) | 98,654 | 69,843 | +41.3% |
| Annual dividend (¥) | 50.00 | 50.00 | ±0.0% |
| FY27 revenue guidance (¥ million) | 850,000 | — | -2.7% |
| FY27 operating profit guidance (¥ million) | 70,000 | — | n.m. |
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