Kuraray Co., Ltd. TSE:3405

Kuraray : Earnings Reports (VWiT)

Published

Source: MarketScreener



‌FY2026 1Q

Earnings Presentation May 13, 2026

FY2026 1Q Results



‌(Billion yen)

FY2026 1Q

FY2025 1Q

Difference

Net Sales

200.9

194.8

6.1

Operating Income

14.9

18.7

(3.8)

Ordinary Income

13.7

17.8

(4.1)

Net Income Attributable to Owners of the Parent

7.8

12.0

(4.2)

Reference

JPY/USD (average)

157

153

JPY/EUR (average)

184

161

Domestic naphtha JPY 1,000/kl

66

73

US natural gas USD/MMBtu

3.5

3.9

Europe natural gas EUR/MWh

42

47

FY2026 1Q Factors Affecting the Change in Operating Income



18.7

3.4

14.9

(4.0)

(0.7)

(2.5)

‌25.0 (Billion yen)

20.0

15.0

( ) SG&A etc.



10.0

5.0

0.0

FY2025

1Q

Volume Selling Price/

Product Mix

Raw Materials and Fuel/ Exchange rate

Others FY2026

1Q

FY2025 1Q

FY2026 1Q

JPY/USD (average)

153

157

JPY/EUR (average)

161

184

FY2025 1Q

FY2026 1Q

Domestic naphtha JPY 1,000/kl

73

66

US natural gas USD/MMBtu

3.9

3.5

Europe natural gas EUR/MWh

47

42

Net Sales and Operating Income by Segment



‌(Billion yen)

FY2026 1Q

FY2025 1Q

Difference

Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Vinyl Acetate

101.9

11.0

100.4

15.9

1.5

(4.9)

Isoprene

21.5

2.9

19.7

2.8

1.8

0.1

Functional Materials

52.8

3.4

47.8

1.4

5.0

2.0

Fibers & Textiles

14.0

1.1

13.4

(0.6)

0.5

1.7

Trading

17.8

1.6

16.7

1.4

1.1

0.2

Others

7.2

0.4

10.9

0.8

(3.7)

(0.4)

Elimination & Corporate

(14.3)

(5.5)

(14.1)

(3.0)

(0.2)

(2.5)

Total

200.9

14.9

194.8

18.7

6.1

(3.8)

*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



PVOH resin

Amid disruptions in the Middle East, sales volume declined due to overall sluggish demand, although some demand was captured by taking advantage of the global supply system.

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 and product deliveries against the backdrop of a semiconductor memory shortage and the Middle East situation in addition to demand for buying new televisions for international sporting events.

Advanced Interlayer Solutions

Sales volume of PVB film decreased for both architectural and automotive applications due to the continued competitive environment, especially in Europe and Asia, and sales volume of SentryGlas also decreased due to the postponement of projects, etc.

Water-soluble PVOH film MonoSol

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

EVAL

Overall sales volume increased due to steady sales for both food packaging and automotive applications, as well as capturing demand by taking advantage of the global supply system.

‌(Billion yen)

FY2025 1Q

FY2026 1Q

Difference

Net Sales

100.4

101.9

1.5

Operating Income

15.9

11.0

(4.9)

16.0

14.0

18.0

10.0

8.0

12.0

4.0

2.0

6.0

Factors Affecting the Change in Operating Income





15.9

1.9

11.0

(4.6)

(1.6)

(0.7)

(Billion yen)



0.0

FY2025 1Q

Volume Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Overall segment income decreased due to deteriorated capacity utilization and price adjustments in some businesses.

Main reason of increase/ decrease

Others FY2026 1Q

Isoprene



Isoprene Chemicals and Elastomers

As a result of a pull-forward in demand in the previous year caused by U.S. tariff policies in addition to stagnant demand for construction applications in China, the volume of isoprene chemical sales decreased. Sales volumes of elastomers increased, but were impacted by intensified competition with Asian competitors in the European market and other regions.

GENESTAR

Sales volume increased due to expanded sales for both electric and electronic applications and automotive applications.

‌(Billion yen)

FY2025 1Q

FY2026 1Q

Difference

Net Sales

19.7

21.5

1.8

Operating Income

2.8

2.9

0.1





Factors Affecting the Change in Operating Income



3.5

2.5

(Billion yen)

4.0

3.0

2.8

0.8

2.9

2.0

0.4

(1.0) (0.2)

1.0

0.0

Main reason of increase/

decrease

Segment income was partially negatively affected by inventory valuation differences, although there was a positive effect of lower depreciation expenses due to impairment losses recorded in the previous year.

1.5

0.5

FY2025

1Q

Volume Selling Price/

Product Mix

Raw Materials

and Fuel/ Exchange rate

Others FY2026

1Q

Functional Materials



Methacrylate

Sales volume fell due to a reduction in production capacity for methyl methacrylate and some downstream products from July 2025.

Medical

Sales remained firm overall.

Environmental

Solutions

Demand for activated carbon remained stable, and sales volume increased. In addition, price revisions also progressed.

‌(Billion yen)

FY2025 1Q

FY2026 1Q

Difference

Net Sales

47.8

52.8

5.0

Operating Income

1.4

3.4

2.0



Factors Affecting the Change in Operating Income



3.5

2.5

4.0

0.6

3.4

3.0

0.8

(0.3)

0.9

2.0

1.4

1.0

0.0

(Billion yen)

Main reason of increase/

decrease

In addition to steady sales, the segment income as a whole benefited from the positive effect of foreign exchange rates.

1.5

0.5

FY2025 1Q

Volume Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Others FY2026 1Q

*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.

Fibers and Textiles



‌(Billion yen)

FY2025 1Q

FY2026 1Q

Difference

Net Sales

13.4

14.0

0.5

Operating Income

(0.6)

1.1

1.7



1.5

1.0

0.5

Factors Affecting the Change in Operating Income





(0.6)

0.7

0.3

0.4

1.1

0.4

CLARINO

Sales volume increased amid a recovery in sales, mainly for footwear applications.

Fibers and Industrial Materials

Demand recovered, especially for VECTRAN , and sales volume increased. Sales remained flat despite the negative impact of the withdrawal from the dry-laid nonwoven fabrics business.

(Billion yen)

0.0

(0.5)

(1.0)

FY2025 1Q

Volume Selling Price/ Product Mix

Raw Materials and Fuel/ Exchange rate

Main reason of

increase/

decrease

Segment income increased due to higher sales

volume of CLARINOTM and VECTRANTM.

Others FY2026 1Q

Balance Sheet [1]: Assets



‌(Billion yen)

Mar. 31, 2026

Dec. 31, 2025

Difference

Current Assets 581.3

578.4

2.9

Non-current 734.7

Assets

725.1

9.6

Total Assets 1,316.1

1,303.5

12.5

Mar. 31, 2026

Dec. 31, 2025

JPY/USD (end of period)

160

157

JPY/EUR (end of period)

183

184

Balance Sheet [2]: Liabilities and Net Assets



‌(Billion yen)

Mar. 31, 2026

Dec. 31, 2025

Difference

Current Liabilities

233.3

228.2

5.1

Non-current Liabilities

329.8

320.1

9.7

Total Liabilities

563.1

548.3

14.8

Net Assets

752.9

755.2

(2.3)

Total Liabilities and

Net Assets

1,316.1

1,303.5

12.5

Equity Ratio

56.2%

57.0%

(0.7)%

Mar. 31, 2026

Dec. 31, 2025

JPY/USD (end of period)

160

157

JPY/EUR (end of period)

183

184

‌Segment and Business

Sales Volume Progress

Comments

Vinyl Acetate

PVOH resin



Production in Japan and Singapore was down due to the situation in the Middle East. Utilized bases in Europe and the U.S. to capture demand

Optical-use poval film



Sales volume increased because demand was brought forward from 2Q onward against the

backdrop of tight supplies of various materials and the situation in the Middle East.

Advanced Interlayer Solutions



Sales volume decreased due to sluggish demand, especially for European building applications, and intensified competition.

Water-soluble PVOH film MonoSol



Largely as planned



EVAL



Largely as planned

Isoprene

Isoprene Chemicals and Elastomers



Utilized the Thailand base to capture demand for certain products where supply and demand were tight.



GENESTAR



Largely as planned

Functional Materials

Methacrylate



Sales volume decreased due to deteriorating demand.

Medical



Largely as planned

Environmental Solutions



Largely as planned

Fibers &

Textiles



CLARINO



Largely as planned

Fibers and Industrial Materials



Sales volume decreased, reflecting lower demand for KURALON , despite strong demand for

VECTRAN .

*The arrows indicate the progress of the sales volume in the 1Q FY2026 against the 1H FY2026 plan.

Progress of FY2026 1Q Sales Volume in 1H Plan





‌Potential Implications

Our Response

  • Partial reduction of production due to restrictions on procurement of raw materials and fuel such as ethylene, butadiene, etc. (Japan, Singapore)

  • Global cost increases in raw material and fuel prices, utility costs,

    logistics costs, etc.

  • Special demand against a backdrop of logistics disruptions. Fluctuations in demand due to concerns over material procurement (front-loaded demand and the subsequent rebound)

  • Decrease in demand due to inflation, supply chain disruptions, etc.

  • Reduce procurement risk by diversifying and decentralizing procurement sources

  • Ensure stable supply and flexible production capabilities by promoting optimal production locations leveraging our global supply network

  • Continue cost reduction efforts through internal initiatives. Implement price revisions to maintain quality and stable supply

Middle East Situation: Potential Implications for Our Business and Our Response



As the situation continues to change rapidly and it remains difficult to make a reasonable forecast, we have not

conducted a review of our consolidated earnings forecast at this time.

If it becomes possible to make a reasonable forecast in the future and a review indicates that an update is necessary, we will promptly disclose the relevant information.

Kuraray Group's Global Supply System





‌Due to the situation in the Middle East, certain constraints have emerged in raw materials and fuel procurement at bases in Japan and Singapore. Meanwhile, other bases in the U.S., Europe, Thailand, and other regions are not experiencing any significant impact at this time. By leveraging our globally diversified manufacturing footprint, we continue to ensure a stable supply.

Production capacity

by country/region:

Singapore

11%

PVOH

Japan

34%

Europe

34%

Japan

10%

Thailand

28%

Japan

28%

Europe

26%

Resin EVALTM SEPTONTM GENESTARTM

U.S.

29%

U.S.

56%

U.S.

44%

Thailand

50%

Japan

50%

Bases and production capacity as of December 2025

Shareholder Return



‌

Completed share buyback of 5,829 thousand shares on March 23, 2026.

Decided cancellation of treasury stocks of 5,830 thousand shares at the Board of Directors meeting on May 13, 2026

Dividend forecast remains unchanged

2025

2026

plan

Dividend

Maintain and increase dividends per share

¥54

Breakdown Interim Year-end Normal dividend ¥27 ¥27

¥64(plan)

Breakdown Interim Year-end

Normal dividend ¥27 ¥27

Share Buybacks

Aim for continuous conduct

¥30.0 billion

¥10.0 billion

(Conducted between

Total Return Ratio

50% or more

628.1%

Approx. 74%

Commemorative dividend

¥5 ¥5

Feb. 12, 2026 ~ March 23, 2026)

© 2026 KURARAY CO., LTD. All rights reserved. 14

Total ¥32 ¥32

14



Ref.

Forecast for FY2026



‌(Billion yen)

FY2026 Forecast

(Feb. 10, 2026)

FY2025

Difference

1H

2H

FY

1H

2H

FY

1H

2H

FY

Net Sales

410.0

440.0

850.0

400.0

408.5

808.4

10.0

31.5

41.6

Operating Income

24.0

46.0

70.0

26.3

32.6

58.9

(2.3)

13.4

11.1

Ordinary Income

21.0

43.0

64.0

21.3

30.2

51.5

(0.3)

12.8

12.5

Net Income Attributable to

Owners of the Parent

13.0

27.0

40.0

14.0

(6.6)

7.5

(1.0)

33.6

32.5

JPY/USD (average)

150

150

148

150

JPY/EUR (average)

175

175

162

169

Domestic naphtha (JPY 1,000/kl)

61

61

71

68

US natural gas USD/MMBtu

3.8

3.8

3.7

3.6

Europe natural gas EUR/MWh

37

37

41

37

Reference:

‌FY2026 Forecast

FY2025

(Billion yen) Difference

Vinyl Acetate

Isoprene

Functional Materials Fibers & Textiles

Trading

Others

Elimination & Corporate

Total

1H 205.0 44.0

31.0

32.0

63.0

29.8

31.0

60.7

1.2

1.0

2.3

34.0

36.0

70.0

33.9

34.9

68.8

0.1

1.1

1.2

17.0

24.0

41.0

21.7

18.2

39.9

(4.7)

5.8

1.1

(27.0)

(32.0)

(59.0)

(26.8)

(26.9)

(53.7)

(0.2)

(5.1)

(5.3)

410.0

440.0

850.0

400.0

408.5

808.4

10.0

31.5

41.6

106.0 2H 215.0 49.0 116.0 FY 420.0 93.0 222.0

1H

202.9

39.9

98.6

2H

201.6

40.4

109.3

FY

404.5

80.4

207.8

1H

2.1

4.1

7.4

2H

13.4

8.6

6.7

FY

15.5

12.6

14.2

*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.

Net Sales Forecast by Segment



Ref.

Operating Income Forecast by Segment



‌(Billion yen)

FY2026 Forecast

FY2025

Difference

1H

2H

FY

1H

2H

FY

1H

2H

FY

Vinyl Acetate

22.0

41.0

63.0

29.9

32.7

62.5

(7.9)

8.3

0.5

Isoprene

1.5

1.5

3.0

(1.3)

(3.6)

(4.9)

2.8

5.1

7.9

Functional Materials

6.0

8.5

14.5

1.7

7.2

8.9

4.3

1.3

5.6

Fibers & Textiles

1.5

3.0

4.5

(0.1)

2.7

2.6

1.6

0.3

1.9

Trading

3.0

3.5

6.5

3.0

3.0

6.0

0.0

0.5

0.5

Others

0.0

1.0

1.0

1.9

1.8

3.7

(1.9)

(0.8)

(2.7)

Elimination & Corporate

(10.0)

(12.5)

(22.5)

(8.9)

(11.2)

(20.1)

(1.1)

(1.3)

(2.4)

Total

24.0

46.0

70.0

26.3

32.6

58.9

(2.3)

13.4

11.1

*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

Vinyl Acetate

100.4

102.5

98.5

103.1

404.5

101.9

Isoprene

19.7

20.3

18.6

21.9

80.4

21.5

Functional Materials

47.8

50.8

50.6

58.7

207.8

52.8

Fibers & Textiles

13.4

16.3

14.0

17.0

60.7

14.0

Trading

16.7

17.2

15.1

19.7

68.8

17.8

Others

10.9

10.8

9.6

8.7

39.9

7.2

Elimination & Corporate

(14.1)

(12.7)

(12.9)

(14.0)

(53.7)

(14.3)

Total

194.8

205.2

193.5

215.0

808.4

200.9

*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

Vinyl Acetate

15.9

14.0

18.7

14.0

62.5

11.0

Isoprene

2.8

(4.1)

(0.9)

(2.7)

(4.9)

2.9

Functional Materials

1.4

0.4

3.0

4.2

8.9

3.4

Fibers & Textiles

(0.6)

0.5

1.4

1.3

2.6

1.1

Trading

1.4

1.7

1.2

1.8

6.0

1.6

Others

0.8

1.1

1.1

0.7

3.7

0.4

Elimination & Corporate

(3.0)

(5.9)

(4.4)

(6.8)

(20.1)

(5.5)

Total

18.7

7.6

20.1

12.5

58.9

14.9

*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.



‌

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.

© 2026 KURARAY CO., LTD. All rights reserved.