Toho Titanium Company, LimitedTSE: 5727

Financial Results FY2025/1H (2025.11.19)

Nov 19, 2025 at 8:10 AM UTC · Issued by Toho Titanium Company, Limited

Toho Titanium Co., Ltd.Financial Results FY2025/1H(From April 1, 2025 to September 30, 2025)

November 13, 2025

Outline

FY2025/1H Financial Results Summary
FY2025 Entire-Year Financial Forecasts
Outlook

1. FY2025/1H Financial Results Summary

1. FY2025/1H Financial Results Summary

Business environment in the first half of FY2025

Titanium Metal

Despite steady performance in aircraft engine maintenance, repair and overhaul (MRO), inventory adjustments in the supply chain attributable to various issues at Boeing persisted
Sales volume for general industry applications declined, impacted by excess production by Chinese manufacturers
High purity titanium for use in semiconductors remained steady
Prices were stable, with no major changes in demand for raw ore

Catalysts

Inventory adjustments expanded, especially among North American customers, while overall demand in the catalyst market recovered
The increase in exports due to excess polyolefin production capacity in China continued to have an impact on the delayed recovery in production volume for some of our customers in neighboring countries

Chemicals

Impacts such as the stagnating Chinese economy have bottomed out, and MLCC demand is on a gradual recovery track
Year on year, major production adjustments have been made to improve the inventory balance, but utilization rates have currently recovered by around 60%
The situation of sales exceeding production has continued, and efforts to improve the inventory balance will advance

Summary of Performance by Segment

FY2025/1H Consolidated Financial Results

(In billions of JPY)

	FY2025 (From April 1, 2025 to September 30, 2025)	FY2024 (From April 1, 2024 to September 30, 2024)	Change
Net sales	41.0	43.8	-2.7
Operating income	1.3	2.6	-1.3
Ordinary income (loss)	1.2	1.7	-0.5
Net income	0.7	1.1	-0.4
	146.0	152.8
Average exchange rate (yen/$)	(148.9¥/$	(142.7¥/$
	at the end of the period)	at the end of the period)
Dividend (¥/share)	9.00	8.00

Net sales

Net sales fell by 6.2% (-¥2.74 billion) year on year, primarily due to lower sales in the Titanium Metal segment.

Operating results

Operating income: YoY -49.5% (−¥1.3 billion)
Ordinary income: YoY -30.7% (−¥0.52 billion)
Net income: YoY -38.2% (-¥0.43 billion)

FY2025/1H Net Sales and Operating Income by Segment

(In billions of JPY)

Net sales	FY2025 (From April 1, 2024 to September 30, 2024)	FY2024 (From April 1, 2024 to September 30, 2024)	Change
Titanium Metal	27.1	32.8	-5.7
Catalysts	6.0	4.8	+1.2
Chemicals	8.0	6.2	+1.8
Total	41.0	43.8	-2.7

Operating income	FY2025 (From April 1, 2024 to September 30, 2024)	FY2024 (From April 1, 2024 to September 30, 2024)	Change
Titanium Metal	1.6	3.4	-1.8
Catalysts	1.4	1.0	+0.4
Chemicals	(0.5)	(0.8)	+0.3
Common Costs and Expenses Not Allocated to the Individual Segments	(1.2)	(0.9)	-0.3
Total	1.3	2.6	-1.3

Difference in Operating Income between FY2025/1H and FY2024/1H

(In billions of JPY)

(0.8)→(0.5)

3.4→1.6

1.0→1.4

Titanium Metal

Catalysts

Chemicals

5.0

4.0

Ore and electric

+0.7

Changes in

inventories, etc.

+0.8

Common Costs

3.0

2.0

Repair expenses and other fixed costs

+0.2

Sales volume

-1.7

Price

-0.8

Sales volume and prices

+1.1

Changes in inventories, etc.

-0.6

Exchange rate

Raw materials

and other costs

+0.5

Changes in

and Expenses Not Allocated to the Individual Segments

-0.3

1.0

0.0

FY2024/1H

(From April 1, 2024 to

September 30, 2024) Operating income 2.6

Exchange rate

-0.9

-0.2

Sales volume and prices

+0.6

inventories, etc.

-0.7

FY2025/1H

(From April 1, 2025 to

September 30, 2025) Operating income 1.3

Balance Sheet and Cash Flow for FY2025/1H

(In billions of JPY)

March 31, 2025		September 30, 2025	Change Breakdown of key factors
(Assets)			Accounts receivable (3.0) (6.4) Inventory (3.1) Cash and deposits, etc. (0.3) Capital investment +7.5 5.4 Depreciation (3.0) Others +0.9 (1.0) 0.1 (1.1) Profit taxes payable (1.3) Others +0.2 0.0 Net income +0.7 Dividends, etc. (0.7)
Current assets:	69.8	63.4
Non-current assets	55.0	60.4
Total net assets (Liabilities)	124.8	123.8
Loans payable	53.0	53.1
Other liabilities	13.5	12.4
(Total net assets)	58.3	58.3
Total liabilities and net assets	124.8	123.8	(1.0)
Equity ratio (%)	46.8	47.1	0.3

	FY2025/1H
Net income before income taxes	1.1
Depreciation and amortization	3.0
Credit for sales	3.0
Inventory	3.1
Corporate tax payment, etc.	(3.8)
Business cash flow (total)6.4
Acquisition of fixed assets	(7.5)
Others, net	0.0
Investment cash flow (total) (7.5)
Changes in loans	0.1
Payment of dividends	(0.7)
Others, net	(0.0)
Financing cash flow (total) (0.6)
Foreign exchange difference0.5
Subtracted balance	(1.2)

2. FY2025 Entire-Year Financial Forecasts

2. FY2025 Entire-Year Financial Forecasts

Business environment in FY2025/2H

Titanium Metal

Demand for aircraft will be affected by supply chain inventory adjustment factors for longer than initially expected
While future demand growth is seen as certain, a full recovery may not arrive until 2027 or later
The difficult environment surrounding sales for general industrial applications is expected to continue, while demand for high-purity titanium for use in semiconductors is expected to remain strong
CY26LTA export prices are expected to fall by several percentage points due to a decline in raw material prices

Catalysts

A modest recovery in demand that began is expected to continue
Expanded sales are targeted in North America
Catalyst equipment utilization rates are expected to shift to near full production to coincide with increased sales volume

Chemicals

Demand for Ni powder used in MLCCs will continue its recovery trend, but at a more moderate pace than initially forecast
Inventory balance improvement initiatives will continue, raising Ni powder equipment utilization rates to around 70%
A new plant currently under construction will enter trial operation during FY2025, and is expected to enter full service from FY2026 to meet increased demand

Business Environment by Segment

Consolidated Financial Results Forecast for FY2025

(In billions of JPY)

	FY2025 Entire fiscal year	FY2025 Previous forecast	Change
Net sales	81.3	92.3	-11.0
Operating income	4.0	4.3	-0.3
Ordinary income (loss)	3.6	3.3	+0.3
Net income	1.9	2.4	-0.5
	148.0	140.0
Average exchange rate (yen/$)	(150.0¥/$	(140.0¥/$
	at the end of the period)	at the end of the period)
Dividend (forecast) (¥/share)	18.00	18.00

Net sales

Net sales are expected to decline 11.9% year on year (-¥11.0 billion) primarily due to lower sales in the Titanium Metal and Chemicals segments.

Operating results

Operating income: YoY -7.0% (−¥0.3 billion)
Ordinary income: YoY +9.1% (+¥0.3 billion)
Net income: YoY -20.8% (-¥0.5 billion)

FY2025 Financial Results Forecast:Net Sales and Operating income by Segment

(In billions of JPY)

Net sales	FY2025 (From April 1, 2024 to September 30, 2024)	FY2025 (From October 1, 2025 to March 31, 2026)	FY2025 Entire fiscal year	FY2025 Previous forecast	Change (Entire fiscal year)
Titanium Metal	27.1	25.9	53.0	61.7	-8.7
Catalysts	6.0	6.0	11.9	12.2	-0.3
Chemicals	8.0	8.5	16.4	18.4	-2.0
Total	41.0	40.3	81.3	92.3	-11.0

Operating income	FY2025 (From April 1, 2024 to September 30, 2024)	FY2025 (From October 1, 2025 to March 31, 2026)	FY2025 Entire fiscal year	FY2025 Previous forecast	Change (Entire fiscal year)
Titanium Metal	1.6	2.0	3.6	4.0	-0.4
Catalysts	1.4	1.3	2.7	2.2	+0.5
Chemicals	(0.5)	0.5	0.0	0.4	-0.4
Common Costs and Expenses Not Allocated to the Individual Segments	(1.2)	(1.1)	(2.3)	(2.3)	±0.0
Total	1.3	2.7	4.0	4.3	-0.3

Difference in Operating income by Segment Between FY2025 and FY2024

(In billions of JPY)

Titanium Metal

4.0→3.6

	2.2→2.7		0.4→0.0
Catalysts				Chemicals

Sales volume

-2.7

Exchange rate

+1.1

Ore and electric

+0.2

Changes in

inventories, etc.

+1.2

Price

-0.2

Exchange rate Cost, etc.

+0.5 +0.0

Sales volume

and prices

-1.1

Changes in

inventories, etc.

+0.5

Depreciation and

other fixed costs

+0.1

Raw materials

and other costs

+0.3

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Previous forecast Operating income 4.3

FY2025

Operating income 4.0

* Exchange rate sensitivity: ±1¥/$ = Operating income ±¥0.1bn/FY2025/2H (sign is + when yen depreciates)

Sales Volume of Main Products

Sales volume where 100 is sales volume in FY2023 (FY2023-25/1H actual, FY2025/2H forecast)

150

125

100

Titanium sales volume

FY2023 FY2024/1H FY2024/2H FY2025/1H FY2025/2H

250

200

150

100

THC catalyst sales volume

FY2023 FY2024/1H FY2024/2H FY2025/1H FY2025/2H

250

200

150

100

Ni powder sales volume

FY2023 FY2024/1H FY2024/2H FY2025/1H FY2025/2H

Approach to Dividends

Despite revised financial forecasts, there are currently no changes to the dividend forecast

67.4%

30 yen

3 yen

21 yen

34.4%

18 yen

28.9%

15 yen

28.5%

30.2%

Dividend per share (¥), dividend payout ratio (%)

The basic policy has been changed since the FY2024 year-end dividend

Old: Consolidated payout ratio of around 30%

↓

New: Consolidated payout ratio of 30 - 35%

at least 2% of consolidated net assets

21年度 22年度 23年度 24年度

FY2021

FY2022

FY2023

FY2024

FY2025 forecast

25年度計画

* Payout ratio of 30.2% in FY2023 excludes the 70th anniversary commemorative dividend (¥3)

Comparison with Medium-Term Management Plan

	Forecast
	FY2023 to FY2025 Three-year Cumulative	Medium-Term Management Plan Three-year Cumulative	Expected Attainment Rate
Net sales	248.7	310.2	80%
Titanium Metal	177.9	197.7	90%
Catalysts	29.9	37.8	79%
Chemicals	40.8	69.9	58%
Others (new businesses)	—	4.8	—
Operating income	16.8	27.6	61%
Titanium Metal	15.9	13.3	119%
Catalysts	7.1	10.1	70%
Chemicals	(0.2)	7.5	—
Others (new businesses)	-	1.1	—
Common Costs and Expenses Not Allocated to the Individual Segments	(6.0)	(4.4)	—

(In billions of JPY)

FY2025 Forecast	FY2025 MTMP
81.3	120.0
53.0	72.0
11.9	15.0
16.4	30.0
—	3.0
4.0	13.0
3.6	6.0
2.7	4.0
0.0	3.5
—	1.0
(2.3)	(1.5)

[Business environment dramatically changed from when the Medium-Term Management Plan was formulated (2022)]

Supply chain inventory adjustments due to quality issues and strikes at Boeing
Prolonged slowdown of the Chinese economy and rise in exports due to increase in excess production capacity
Delayed ramp-up in hydrogen demand due to European economic slowdown

3. Outlook

3. Outlook

Trends in demand for aircraft

Shortages in the supply of LEAP (Leading Edge Aviation Propulsion) engines, which had constrained the production of new A320neo aircraft, have been resolved primarily through increased capacity among Ni alloy suppliers, with deliveries taking place at a higher pace than the previous year. From 2026 and beyond, the number of aircraft delivered is expected to increase further.
The US Federal Aviation Administration (FAA) approved an increase in the production rate of B737 MAX aircraft from 38 to 42 per month. Boeing plans to ramp up production by five aircraft per month every six months going forward. Production rate of the B787 has already been raised from 5 aircraft a month to 7 a month.
Comments from various companies at the International Titanium Association (ITA) meeting held at the end of September 2025:
Demand for new aircraft is rising against the backdrop of increased air travel demand (Boeing and Airbus).
Airbus has shared its plans to increase production rates, and although titanium demand is expected to decline in 2026 due to inventory adjustments, a major recovery is forecast for 2027.
The demand outlook for titanium for use in aircraft is an annual growth rate of 7.1% from 2025 to 2029 (Charles Edwards).
Demand for titanium for use in engines is expected to increase by 26% from 2025 to 2030 (ATI).
Status of capital investment, etc.
Preparations for the future market ramp-up are expected to be almost completed within this fiscal year
Titanium Metal Segment: Work to enhance capacity at the Wakamatsu Plant by modifying existing sponge titanium equipment is proceeding as planned
Catalysts Segment: With new licensor certification expected, the new Chigasaki Plant (operational since 2023) is expected to enter full production after a prolonged period of low utilization due to sluggish demand
Chemicals Segment: Construction of a new Ni powder plant (Plant No. 5) is largely complete, with trial operation underway to evaluate product samples
New Materials Segment: Construction of the first mass production plant for WEBTi®, which is designed for use in hydrogen manufacturing equipment, is proceeding as planned

Management Philosophy

The Toho Titanium Group pursues

the infinite possibility of titanium and the related technologies, and contributes to building a sustainable society

by continuously supplying excellent products and services

Fundamental Policies

To put our Management Philosophy into practice, we adhere to the following three Fundamental Policies:

We give the highest priority to safety and compliance and operate a healthy and fair business.
We practice innovation and creativity to achieve continuous growth for our employees and organization.
We enhance communication with all stakeholders including customers, local communities, and shareholders, to develop relationships of mutual trust and symbiosis.

Management Philosophy

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This material contains “forward-looking statements” related to future events, such as our expectations on future business and financial performance and financial conditions, which reflect the management’s views and assumptions derived from information that is currently available and are subject to risk and uncertainties. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this material, words such as "believe," "estimate," "expect," "intend," "may," "plan," "project," “target,” “will,” or "would" and similar expressions, as they relate to Toho, are intended as forward-looking statements.

Many factors could cause the actual results, performance, or achievements to be materially different from any future performance or achievements that may be expressed or implied by such forward-looking statements, including, among others,

changes in general economic and business conditions,

the state of the regulatory environment or political situation, changes in currency exchange rates and interest rates,

introduction of competing products by other companies, lack of acceptance of new products by Toho's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy, and various other factors, both referenced and not referenced in this material. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Toho does not intend or assume any obligation to update these forward-looking statements.

(Reference) Difference in Operating Income between FY2025/Q2 and FY2025/Q1

(In billions of JPY)

Titanium Metal

0.8→0.8

Catalysts

0.7→0.6

Chemicals

(0.1)→(0.4)

Changes in

inventories, etc.

+1.1

Sales volume

-1.3

Exchange rate

+0.1

Exchange rate

+0.1

Sales volume Changes in

and prices inventories, etc.

-0.1 -0.1

Sales volume

and prices

-0.1

Common Costs

and Expenses Not Allocated to

Changes in the Individual

inventories, etc. Segments

-0.1 +0.1

2.5

2.0

1.5

1.0

0.5

0.0

FY2025/Q1

FY2025/Q2

Operating income 0.8

Operating income 0.5

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