TEIJIN LIMITED
3401・Prime Market・Textiles & Apparels
Business
The Teijin Group is a diversified materials and healthcare company founded in 1918, comprising 105 subsidiaries and 21 affiliated companies. Its operations consist of three segments: the Materials segment, which handles Aramid Fiber, Carbon Fiber, Polycarbonate Resin, and Composite Molding Materials; the Fibers & Products segment, centered on Polyester Fiber for apparel and industrial materials; and the Healthcare segment, built around home medical equipment rental and pharmaceuticals. The group operates globally across Japan, the US, Europe, China, and Asia, supplying materials, products, and services to a wide range of end markets including defense, aerospace, automotive, and medical. In April 2026, to shift toward a customer-centric business model, the company reorganized its segments into four categories: "Apparel & Industries," "Healthcare & Life Solutions," "Electronics & Energy," and "Specialty Materials."
Business Model
In the Materials business, the core model is product sales, selling proprietary high-performance materials to industrial customers. In the Fibers & Products business, the company provides apparel and industrial materials through a vertically integrated supply chain spanning from material development to product sales. In the Healthcare business, stable, stock-type revenue from rental income on home medical devices (CPAP and oxygen concentrators) is combined with revenue from pharmaceutical manufacturing and sales and licensing fees. From FY2026 onward, the company is promoting a shift toward a "Kumiawase" (combination) model under a "customer-driven business" approach, incorporating external materials, processing, and services rather than relying solely on its own proprietary materials.
Company Strengths
The Healthcare segment secured business profit of ¥13,427 million (profit margin of 9.7%) against revenue of ¥138,558 million. The number of rental units for CPAP and HOT devices continues to increase, and FY2025 business profit achieved over ¥13,400 million, up 136.0% year on year. The rental model has a low cancellation rate, and the expansion of new prescriptions linked to increased examination volumes continues to support the ongoing buildup of rental units.
The Fibers & Products segment recorded revenue of ¥350,068 million and business profit of ¥17,095 million (ROIC of 8%), making it the Group's largest profit-contributing segment. It possesses a vertically integrated supply chain from material development to product sales, catering to diverse end-use applications such as apparel for North America and China and polyester staple fiber for water treatment filters. Even amid macroeconomic fluctuations, the year-on-year decline in revenue was limited to 0.5%, demonstrating high earnings stability.
Para-aramid fibers Twaron and Technora have a track record of adoption in high-value-added applications such as ballistic protection, submarine cables, and offshore wind turbine ropes. The carbon fiber Tenax is advancing the development of intermediate materials for next-generation aircraft, and the company is also rolling out Tenax Next, an environmentally conscious brand based on ISCC PLUS certification. The company has also received external recognition for its technological capabilities, including winning the Innovation Award at Tire Technology Expo 2026.
ENVALITH's Perspective
Performance Trend
Revenue was ¥873,190 million (down 13.2% year on year), marking a second consecutive year of declining revenue. In the Materials segment, the divestiture of the TAT North America business (completed in July 2025) had a significant impact, with revenue from Composite Molding Materials sharply declining from ¥188,387 million to ¥70,051 million. Business profit was ¥25,781 million (down 6.6% year on year), a relatively modest decline, but impairment losses of ¥50,354 million on the Twaron business, ¥8,156 million on the Carbon Fiber business, and ¥25,400 million on Type 2 diabetes treatment drug sales rights, etc., resulted in an operating loss of ¥70,714 million, widening net loss attributable to owners of the parent to ¥88,003 million. Meanwhile, operating cash flow improved to ¥98,654 million (from ¥69,843 million in the prior period), and free cash flow secured an inflow of ¥59,698 million. As external factors, sluggish economic conditions in Europe, delayed recovery in domestic demand in China, and intensifying competition weighed on earnings.
Growth Strategy
The company aims to return to profitability in FY2027 (ending March 2027) through the materialization of structural reform effects and a shift toward customer-oriented business models
In the Twaron business, cost reductions are being pursued while leveraging the resolution of the impact from a major periodic maintenance shutdown and the decrease in depreciation expenses following the completion of impairment processing. In the Carbon Fiber business, fixed costs are being reduced through a review of the global production structure, including a temporary suspension of the U.S. manufacturing site, with the aim of stabilizing earnings. The FY2027 (ending March 2027) business profit target for the Specialty Materials segment is ¥30 million (provisional figure).
Based on the Medium-Term Management Plan 2026-2028, the company is advancing its policy of focusing the Healthcare segment on rare diseases and intractable diseases. The completion of impairment processing for the sales rights of the type 2 diabetes treatment has reduced the depreciation burden. The earnings base is to be strengthened through the expanded sales of "Yobipas" (a treatment for hypoparathyroidism), launched in November 2025, and the continued increase in the number of home medical equipment rental units.
Through the organizational restructuring effective April 1, 2026, the company is transitioning from the previous three-segment structure to four segments: Apparel & Industries, Healthcare & Life Solutions, Electronics & Energy, and Specialty Materials. The company is advancing the deepening of customer-oriented businesses and the transformation of material-based businesses toward a customer- and application-oriented approach, aiming to improve capital efficiency through thorough implementation of ROIC-based management.
Effective April 1, 2026, the company completed the transfer of all shares in its jointly controlled entities with DuPont (DuPont Teijin Advanced Papers Japan Limited and DuPont Teijin Advanced Papers (Asia) Limited) to DuPont. A gain on sale of shares in affiliated companies of approximately ¥45,500 million is expected to be recorded in the first quarter of FY2027 (ending March 2027), supporting the achievement of the forecasted profit attributable to owners of the parent of ¥45,000 million for FY2027 (ending March 2027).
With the aim of sustainable growth and maximizing corporate value, preparations are underway for the business integration of Teijin Frontier Co., Ltd. and Asahi Kasei Advance Corporation. Through the integration, the company aims to expand scale and generate synergies, strengthening the competitiveness of the Apparel & Industries segment. The FY2027 (ending March 2027) business profit target for this segment is ¥190 million (provisional figure).
Last updated: July 19, 2026