For the fiscal year ended March 31, 2026, Toray Group delivered steady top-line growth but faced uneven earnings performance across its businesses amid a mixed global economic backdrop marked by geopolitical uncertainty and slowing demand in key markets.
The company reported revenue of ¥2,585.1 billion, up 0.9% year-on-year, while core operating income slipped 0.6% to ¥141.9 billion. Operating income fell sharply by 23.7% to ¥97.2 billion, reflecting significant one-off impacts.
Despite this, profit attributable to owners of the parent rose 2.1% to ¥79.5 billion, supported by underlying resilience offset against an impairment loss in its battery separator film business in Korea.
Management highlighted a global environment defined by uneven regional momentum: a strong but slightly weakening U.S. economy, gradual recovery in Europe, a slow deceleration in China, and a steadily recovering Japanese economy. At the same time, trade flow sluggishness and cautious purchasing behavior intensified due to policy uncertainty linked to the U.S. administration and rising geopolitical risk.
Against this backdrop, Toray continued executing its medium-term strategy, “Project AP-G 2025,” focused on sustainable growth, value creation, operational excellence, people-centric management, and strengthened governance.
Segment snapshots:
Fibers & Textiles remained a bright spot, with revenue rising 4.0% to ¥1,051.1 billion and core operating income increasing 6.0% to ¥68.0 billion. Apparel demand stayed solid overall, even as Europe remained sluggish and competition from overseas producers intensified. Industrial applications, particularly automotive-related demand, were weaker, but cost control measures helped sustain profitability.
In contrast, Performance Chemicals faced headwinds. Revenue declined 5.3% to ¥894.4 billion, and core operating income fell 6.2% to ¥56.3 billion. Weak automotive demand weighed on resins and chemicals, while films and electronics materials saw mixed trends. Demand for battery separator film stagnated, and display-related materials were pressured by slow panel demand and rising competition in China.
The Carbon Fiber Composite Materials segment posted flat revenue at ¥300.1 billion, but profitability weakened significantly as core operating income dropped 21.7% to ¥17.6 billion. Aerospace applications continued to recover, but industrial uses—including pressure vessels and wind turbine blades—remained subdued.
A clear outperformer was Environment & Engineering, where revenue jumped 12.8% to ¥266.9 billion and core operating income rose 11.2% to ¥28.8 billion. Strong demand for RO membranes in the Middle East and steady plant projects in Japan supported growth, alongside solid performance from engineering subsidiaries.
The Life Science segment remained under pressure, with revenue slipping 1.4% to ¥52.4 billion and a core operating loss of ¥0.1 billion, though this marked a slight improvement. Pharmaceutical sales were mixed—overseas growth, particularly in China, was offset by domestic erosion from generics—while medical devices remained subdued despite cost-cutting and product mix improvements.
While Toray managed to slightly grow revenue and stabilize underlying earnings, profitability diverged sharply across divisions. Strength in fibers and engineering was offset by weakness in chemicals and carbon fiber, underscoring the uneven global demand environment shaping the group’s performance.
