Kuraray Co., Ltd.TSE: 3405

Kuraray: Earnings Reports (pAic)

· Issued by Kuraray Co., Ltd.

Summary by 6ix AI

Kuraray reported net sales of ¥643.4 billion and operating income (profit from its main business) of ¥69.7 billion for the first three quarters of fiscal 2026 (through September 30, 2026), up from ¥593.4 billion and ¥46.4 billion a year earlier. It kept the full-year forecast it issued in August 2026.

Key details

  • Net income attributable to owners of the parent was ¥40.6 billion for the first three quarters, compared with ¥22.8 billion a year earlier. Kuraray says it promoted price revisions in response to rising raw material and fuel prices.
  • Third-quarter operating income was ¥40.9 billion. It included a positive effect of approximately ¥16.0 billion from inventory valuation differences, which reflected sales of relatively low-cost inventory produced in the first half.
  • The fiscal 2026 forecast remains net sales of ¥880.0 billion, operating income of ¥70.0 billion and net income attributable to owners of the parent of ¥40.0 billion.
  • Kuraray plans to release its fiscal 2026 results and announce a new long-term vision on February 9, 2027. It plans a briefing on the new long-term vision on February 22, 2027.

What’s still pending

  • Kuraray expects fourth-quarter profit to fall sharply from the third quarter. It expects a negative effect of approximately ¥8.0 billion from inventory valuation differences, plus higher repair costs and lower plant use from regular maintenance at certain plants.
  • Kuraray expects lower fourth-quarter sales volume due to an adjustment phase in optical-use poval film, one of its film products. It also expects seasonal factors in certain businesses to lower volume.
  • Kuraray expects second-half performance to progress in line with its plan.

6ix AI wrote this summary from the release below and checked it against the release.

On 6ix: 6ix.com/news/kuraray-earnings-reports-paic

FY2026 3Q Earnings Presentation November 11, 2026

1-3Q results achieved year-on-year growth in both net sales and profits.

  • Promoted price revisions in response to rising raw material and fuel prices

  • Inventory valuation differences of approximately +¥16.0 billion had a positive impact in 3Q, reflecting sales of relatively low-cost inventory produced in 1H.

  • 3Q operating income was ¥40.9 billion, bringing 1-3Q operating income to ¥69.7 billion.

Profit in 4Q is expected to decrease significantly from 3Q due to the negative impact of

inventory valuation differences, regular maintenance, and other factors.

  • A negative impact of approximately (¥8.0) billion from inventory valuation differences is expected in 4Q, mainly reflecting lower utilization rates and other factors in 3Q.

  • Profit is expected to decrease due to higher repair costs and lower utilization rates associated with regular maintenance at certain plants.

  • A decrease in sales volume is expected due to an adjustment phase in optical-use poval film and seasonal factors in certain businesses.

The full-year earnings forecast announced in August 2026 has not been revised.

  • Although there will be a gap between 3Q and 4Q profits due to inventory valuation differences, regular maintenance, and other factors, 2H performance is expected to progress in line with the plan.

Key Points of FY2026 3Q Financial Results

FY2026 1-3Q Results

‌(Billion yen)

FY2026 1-3Q

FY2025 1-3Q

Difference

Net Sales

643.4

593.4

49.9

Operating Income

69.7

46.4

23.4

Ordinary Income

65.3

40.1

25.3

Net Income Attributable to Owners of the Parent

40.6

22.8

17.8

Reference

JPY/USD (average)

159

148

JPY/EUR (average)

184

166

Domestic naphtha JPY 1,000/kl

91

69

US natural gas USD/MMBtu

3.1

3.4

Europe natural gas EUR/MWh

51

39

FY2026 1-3Q Factors Affecting the Change in Operating Income

‌Promoted price revisions in response to rising raw material and fuel prices

15.5

60.0

11.2

1.3

(4.5)

40.0

20.0

0.0

+23.4

80.0

Inventory valuation differences contributed positively.

10.0

30.0

50.0

70.0

(Billion yen)

FY2025 1-3Q

Volume/ Capacity Utilization

Selling Price/ Product Mix

Raw Materials

and Fuel/ Exchange rate

Others

FY2026 1-3Q

Vinyl Acetate

48.6

(0.3)

2.3

(2.2)

7.4

55.8

Isoprene

(2.2)

0.4

1.4

(1.7)

5.4

3.4

Functional Materials

4.7

2.0

5.0

(0.2)

(0.9)

10.7

Fibers & Textiles

1.3

(0.5)

2.4

(0.5)

5.9

8.5

Trading/ Others/

Elimination & Corporate

(6.1)

(0.2)

0.0

0.0

(2.4)

(8.7)

Total

46.4

1.3

11.2

(4.5)

15.5

69.7

*From FY2026, the segment classification of the businesses under Electronics Materials Promotion Division is changed from "Others" to "Functional Materials." Accordingly, figures presented under result for FY2025 reflect this change.

Net Sales and Operating Income by Segment

‌(Billion yen)

FY2026 1-3Q

FY2025 1-3Q

Difference

Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Vinyl Acetate

322.6

55.8

301.4

48.6

21.2

7.3

Isoprene

68.7

3.4

58.5

(2.2)

10.2

5.6

Functional Materials

168.1

10.7

149.1

4.7

19.0

5.9

Fibers & Textiles

46.6

8.5

43.7

1.3

2.9

7.3

Trading

55.1

5.4

49.1

4.2

6.0

1.2

Others

26.2

1.6

31.3

3.0

(5.0)

(1.4)

Elimination & Corporate

(44.1)

(15.7)

(39.7)

(13.3)

(4.4)

(2.4)

Total

643.4

69.7

593.4

46.4

49.9

23.4

*From FY2026, the segment classification of the businesses under Electronics Materials Promotion Division is changed from "Others" to "Functional Materials." Accordingly, figures presented under result for FY2025 reflect this change.

Vinyl Acetate

‌Sales of optical-use poval film were strong, while challenging business conditions continued for the advanced interlayer solutions business. Promoted price revisions in response to rising raw material and fuel prices

PVOH resin

Having captured demand by leveraging our global supply system amid disruptions in the Middle East, sales volume increased, but the utilization rate fell due to a decline in the sales volume of

some products in the downstream business.

Optical-use poval film

Sales volume increased as a result of an accumulation of inventories across the supply chain due to concerns around component procurement against the backdrop of a semiconductor memory shortage and the Middle East situation in addition to demand for new televisions ahead of international sporting events.

Advanced Interlayer Solutions

The competitive environment for PVB film remained intense, particularly in Europe and Asia. As a result, sales volume decreased for both construction and automotive applications.

Sales of SentryGlas also declined due in part to the effects of project delays as customers responded to deteriorating conditions in the Middle East.

Water-soluble PVOH film MonoSol

Sales volume decreased due to weak demand for soluble unit-dose detergent.

EVAL

Sales volume increased overall as sales for food packaging remained favorable despite a decrease in the sales volume for automotive applications.

Factors Affecting the Change in Operating Income Business Conditions

(Billion yen)

50.0

7.4

2.3

(0.3)

(2.2)

*Lower utilization rates due to decreased sales

volume of downstream products

+7.3

(+) Inventory valuation differences, etc.

(-) Regular maintenance, etc.

(+) Optical-use poval film

(-) Advanced Interlayer Solutions PVOH resin*

60.0

30.0

40.0

20.0

10.0

0.0

FY2025 1-3Q Volume/ Capacity Utilization

Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Others FY2026 1-3Q

Isoprene

‌Promoted price revisions in response to rising raw material and fuel prices In addition to the positive impact of inventory valuation differences, depreciation and amortization expenses decreased due to impairment losses recorded in the previous year. Factors Affecting the Change in Operating Income Business Conditions

Isoprene Chemicals and Elastomers

As a result of stagnant demand for construction applications in China, sales volume of isoprene chemicals decreased. Particularly in the United States market,

sales volumes of elastomers increased. As for profitability, there were positive effects from price revisions, a decline in depreciation and amortization expenses, and other factors.

GENESTAR

Sales volume increased due to sales expansion in both electric and electronic applications and automotive applications.

(Billion yen)

5.4

1.4

0.4

(1.7)

+5.6

(+) GENESTAR

(-) Isoprene Chemicals

4.0

3.0

2.0

1.0

0.0

(1.0)

(2.0)

(3.0)

FY2025 1-3Q Volume/ Capacity Utilization

Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Others FY2026 1-3Q

Functional Materials

‌Sales in the medical business remained firm. Earnings improved through price revisions for activated carbon and restructuring of the methacrylate business. Factors Affecting the Change in Operating Income Business Conditions

14.0

5.0

(0.2)

(0.9)

2.0

+5.9

(+) Inventory valuation differences, etc.

(-) SG&A, etc.

(+) Exchange rate

(-) Raw materials and fuel

Methacrylate

Although sales volume fell due to the optimization of production capacity, there were positive effects on profit, mainly due to an improved sales composition and price revisions.

Medical

Sales of cosmetic dental materials, mainly in Europe and the United States, remained firm. In addition, to meet growing demand, we began operations of expanded facilities at the Miyoshi Plant in the second quarter.

Environmental Solutions

Demand for activated carbon remained stable, and sales volume increased. In addition, price revisions were implemented. To prepare for future growth in demand for reactivated carbon, we decided to expand production facilities for reactivated carbon in the United States (slated to begin operating in the first quarter of 2028).

(Billion yen)

10.0

12.0

6.0

8.0

4.0

2.0

0.0

FY2025 1-3Q Volume/ Capacity Utilization

Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Others FY2026 1-3Q

*From FY2026, the segment classification of the Electronics Materials Promotion Division is changed from "Others" to "Functional Materials." Accordingly, figures presented under result for FY2025 reflect this change.

Fibers and Textiles

‌Promoted a price revision for KURALON in response to rising raw material and fuel prices Inventory valuation differences contributed positively. Factors Affecting the Change in Operating Income Business Conditions

CLARINO

Sales volume increased amid a recovery in demand, including for footwear applications.

Fibers and Industrial Materials

Sales volume of KURALON remained sluggish due to weak demand for

construction material applications. Strong sales of VECTRAN contributed to profitability in addition to the positive impact of inventory valuation differences and a price revision for KURALON .

(Billion yen)

(0.5)

(0.5)

+7.3

2.4

5.9

(+) Exchange rate

(-) Raw materials and fuel

FY2025 1-3Q Volume/

Capacity Utilization

Selling Price/

Product Mix

Raw Materials

and Fuel/ Exchange rate

Others FY2026 1-3Q

Balance Sheet [1]: Assets

‌(Billion yen)

Sep. 30, 2026

Dec. 31, 2025

Difference

Current Assets 590.8

578.4

12.4

Non-current 739.6

Assets

725.1

14.5

Total Assets 1,330.4

1,303.5

26.9

Sep. 30, 2026

Dec. 31, 2025

JPY/USD (end of period)

157

157

JPY/EUR (end of period)

178

184

Balance Sheet [2]: Liabilities and Net Assets

‌(Billion yen)

Sep. 30, 2026

Dec. 31, 2025

Difference

Current Liabilities

215.7

228.2

(12.6)

Non-current Liabilities

348.5

320.1

28.3

Total Liabilities

564.1

548.3

15.8

Net Assets

766.3

755.2

11.1

Total Liabilities and

Net Assets

1,330.4

1,303.5

26.9

Equity Ratio

56.6%

57.0%

(0.4)%

Sep. 30, 2026

Dec. 31, 2025

JPY/USD (end of period)

157

157

JPY/EUR (end of period)

178

184

Forecast for FY2026

FY2026

Forecast

(Nov. 11, 2026)

FY2025

Difference

Net Sales

880.0

808.4

71.6

Operating Income

70.0

58.9

11.1

Ordinary Income

64.0

51.5

12.5

Net Income Attributable to Owners of the Parent

40.0

7.5

32.5

Reference

JPY/USD (average)

158

150

JPY/EUR (average)

182

169

Domestic naphtha JPY 1,000/kl

93

68

US natural gas USD/MMBtu

3.1

3.6

Europe natural gas EUR/MWh

62

37

FY2026

Forecast

(Aug. 7, 2026)

Difference

880.0

0.0

70.0

0.0

64.0

0.0

40.0

0.0

‌Although there will be a gap between 3Q and 4Q profits, 2H performance is expected to progress in line with the plan. The full-year earnings forecast has not been revised.

159

182

92

3.2

52

(Billion yen)

FY2026 3Q Results and 4Q Forecast Factors Affecting the Change in Operating Income

‌Inventory valuation differences, which had a positive impact in 3Q, are expected to have a negative impact in 4Q. The impact of regular maintenance at certain plants and decreases in sales volume of optical-use poval film and other products are expected.

45.0

35.0

(Billion yen)

40.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

(24.0)

(2.0)

(7.0)

(7.6)

(40.6)

(-) Decrease in sales volume of optical-use poval film Seasonal factors in certain businesses

Increase in corporate expenses, etc.

FY2026 3Q Inventory Valuation Differences

Repair Cost

of Regular Maintenance

Capacity Utilization Impact due to Regular Maintenance

Others FY2026 4Q

(Forecast)

*See p.14 for a breakdown of inventory valuation differences, repair cost of regular maintenance, and capacity utilization impact due to regular maintenance.

yen

loss

‌Approximate impact on operating income

Billion profit, ()

FY2026 3Q

FY2026 4Q

(Forecast)

3Q/4Q

Difference

(Forecast)

Inventory valuation differences

Repair cost of regular maintenance

Capacity utilization impact due to regular maintenance

Total

Inventory valuation differences

Repair cost of regular maintenance

Capacity utilization impact due to regular maintenance

Total

Vinyl Acetate

11.0

0.0

1.5

12.5

(5.0)

(1.5)

(1.5)

(8.0)

(20.5)

Isoprene

1.5

0.0

0.5

2.0

(1.0)

0.0

(0.5)

(1.5)

(3.5)

Functional Materials

0.5

0.0

0.0

0.5

0.0

0.0

0.0

0.0

(0.5)

Fibers & Textiles

3.0

0.0

0.5

3.5

(2.0)

(0.5)

(0.5)

(3.0)

(6.5)

Trading/ Others/

Elimination & Corporate

0.0

0.0

1.0

1.0

0.0

0.0

(1.0)

(1.0)

(2.0)

Total

16.0

0.0

3.5

19.5

(8.0)

(2.0)

(3.5)

(13.5)

(33.0)

Details of Inventory Valuation Differences and Regular Maintenance Impacts

(FY2026 3Q Results and 4Q Forecast)

Ref.

Net Sales and Operating Income by Segment

‌(Billion yen)

FY2026 Forecast

(Nov. 11, 2026)

FY2025

Difference

FY2026 Forecast

(Aug. 7, 2026)

Difference

Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Vinyl Acetate

431.0

63.0

404.5

62.5

26.5

0.5

431.0

63.0

0.0

0.0

Isoprene

96.0

1.5

80.4

(4.9)

15.6

6.4

96.0

2.5

0.0

(1.0)

Functional Materials

234.0

13.5

207.8

8.9

26.2

4.6

234.0

13.5

0.0

0.0

Fibers & Textiles

66.0

6.0

60.7

2.6

5.3

3.4

66.0

5.5

0.0

0.5

Trading

74.0

7.0

68.8

6.0

5.2

1.0

74.0

7.0

0.0

0.0

Others

40.0

2.0

39.9

3.7

0.1

(1.7)

40.0

1.5

0.0

0.5

Elimination & Corporate

(61.0)

(23.0)

(53.7)

(20.1)

(7.3)

(2.9)

(61.0)

(23.0)

0.0

0.0

Total

880.0

70.0

808.4

58.9

71.6

11.1

880.0

70.0

0.0

0.0

*From FY2026, the segment classification of the businesses under Electronics Materials Promotion Division is changed from "Others" to "Functional Materials." Accordingly, figures presented under result for FY2025 reflect this change.

Ref.

Quarterly Net Sales by Segments

‌(Billion yen)

FY2025

FY2026

1Q

2Q

3Q

4Q

FY

1Q

2Q

3Q

4Q

(Forecast)

FY

(Forecast)

Vinyl Acetate

100.4

102.5

98.5

103.1

404.5

101.9

115.2

105.5

108.4

431.0

Isoprene

19.7

20.3

18.6

21.9

80.4

21.5

24.4

22.9

27.3

96.0

Functional Materials

47.8

50.8

50.6

58.7

207.8

52.8

57.5

57.8

65.9

234.0

Fibers & Textiles

13.4

16.3

14.0

17.0

60.7

14.0

17.9

14.8

19.4

66.0

Trading

16.7

17.2

15.1

19.7

68.8

17.8

19.6

17.7

18.9

74.0

Others

10.9

10.8

9.6

8.7

39.9

7.2

8.6

10.5

13.8

40.0

Elimination & Corporate

(14.1)

(12.7)

(12.9)

(14.0)

(53.7)

(14.3)

(13.1)

(16.8)

(16.9)

(61.0)

Total

194.8

205.2

193.5

215.0

808.4

200.9

230.1

212.3

236.6

880.0

*From FY2026, the segment classification of the businesses under Electronics Materials Promotion Division is changed from "Others" to "Functional Materials."

Accordingly, figures presented under result for FY2025 reflect this change.

Ref.

Quarterly Operating Income by Segments

‌(Billion yen)

FY2025

FY2026

1Q

2Q

3Q

4Q

FY

1Q

2Q

3Q

4Q

(Forecast)

FY

(Forecast)

Vinyl Acetate

15.9

14.0

18.7

14.0

62.5

11.0

14.3

30.5

7.2

63.0

Isoprene

2.8

(4.1)

(0.9)

(2.7)

(4.9)

2.9

(1.1)

1.6

(1.9)

1.5

Functional Materials

1.4

0.4

3.0

4.2

8.9

3.4

1.5

5.8

2.8

13.5

Fibers &

Textiles

(0.6)

0.5

1.4

1.3

2.6

1.1

3.1

4.4

(2.5)

6.0

Trading

1.4

1.7

1.2

1.8

6.0

1.6

2.1

1.8

1.6

7.0

Others

0.8

1.1

1.1

0.7

3.7

0.4

0.4

0.8

0.4

2.0

Elimination & Corporate

(3.0)

(5.9)

(4.4)

(6.8)

(20.1)

(5.5)

(6.3)

(3.9)

(7.3)

(23.0)

Total

18.7

7.6

20.1

12.5

58.9

14.9

14.0

40.9

0.3

70.0

*From FY2026, the segment classification of the businesses under Electronics Materials Promotion Division is changed from "Others" to "Functional Materials."

Accordingly, figures presented under result for FY2025 reflect this change.

yen

loss

‌Approximate impact on operating income

Billion profit, ()

FY2025 1H

FY2025 2H

FY2025

Regular maintenance cost

Operation suspension cost

Inventory valuation differences

Total

Regular maintenance cost

Operation suspension cost

Inventory valuation differences

Total

Total

Vinyl Acetate

(2.0)

(2.0)

(3.0)

(7.0)

(0.5)

2.0

3.0

4.5

(2.5)

Isoprene

(2.0)

0.0

0.5

(1.5)

0.0

0.0

(1.0)

(1.0)

(2.5)

Functional Materials

(0.5)

(2.0)

0.0

(2.5)

0.0

0.0

0.5

0.5

(2.0)

Fibers & Textiles

0.0

0.0

(0.5)

(0.5)

0.0

0.0

0.5

0.5

0.0

Total

(4.5)

(4.0)

(3.0)

(11.5)

(0.5)

2.0

3.0

4.5

(7.0)

Ref.

Modeling Tool (FY2025 Results)

yen

loss

‌Approximate impact on operating income

Billion profit, ()

FY2026 1H

FY2026 2H

(Forecast)

FY2026

(Forecast)

Regular maintenance cost

Operation suspension cost

Inventory valuation differences

Total

Regular maintenance cost

Operation suspension cost

Inventory valuation differences

Total

Total

Vinyl Acetate

(4.0)

0.0

(3.0)

(7.0)

(1.5)

0.0

6.0

4.5

(2.5)

Isoprene

(2.0)

0.0

1.5

(0.5)

0.0

0.0

0.5

0.5

0.0

Functional Materials

0.0

(0.5)

(0.5)

(1.0)

0.0

0.0

0.5

0.5

(0.5)

Fibers & Textiles

0.0

0.0

0.5

0.5

(0.5)

0.0

1.0

0.5

1.0

Total

(6.0)

(0.5)

(1.5)

(8.0)

(2.0)

0.0

8.0

6.0

(2.0)

Ref.

Modeling Tool (FY2026 1H Results and 2H Revised Forecast)

‌Announcement of FY2026 Financial Results Announcement of New Long-Term Vision

February 9, 2027

Briefing on New Long-Term Vision

February 22, 2027

Ref.

Upcoming IR Events (Planned)

All figures are rounded to the nearest hundred million yen.

This presentation contains various forward-looking statements which are based on the current expectations and assumptions of future events. All figures and statements with respect to the future performance, projections, and business plans of Kuraray and its group companies constitute forward-looking statements. Although Kuraray believes that its expectations and assumptions are reasonable, actual results and trends of Kuraray's performance could differ materially from those expressed or implied by such figures or statements due to risks and uncertainties in the future business circumstances. The factors which may cause such difference include, without limitation: (1) general market and economic conditions in Asia including Japan, the U.S., Europe and other regions; (2) fluctuations of currency exchange rates, especially between the Japanese yen and the U.S. dollar and other foreign currencies; (3) changes in raw material and fuel costs; (4) industrial competition and price fluctuations in Japan and international markets; (5) advance or delay in the construction of new plants and production lines; (6) successful development of new products and technologies; and (7) changes in laws and regulations (including tax and environmental) and legal proceedings.

Kuraray Co., Ltd. on 6ix

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