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Kuraray Profit Plunges on Weaker Margins Despite Modest Sales Decline in 2025

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Kuraray Profit Plunges on Weaker Margins Despite Modest Sales Decline in 2025

Meet Samuel – Your Personal Investing Prophet

The latest update is out from Kuraray Co ( (JP:3405) ).

Kuraray reported consolidated net sales of ¥808.4 billion for the fiscal year ended December 31, 2025, a 2.2% decline from the previous year, as profitability weakened across its operations. Operating income fell 30.8% to ¥58.9 billion and ordinary income dropped 36.8% to ¥51.5 billion, with net income attributable to owners of the parent plunging 76.5% to ¥7.5 billion, reflecting significant pressure on margins and returns.

Key profitability metrics deteriorated sharply, with return on equity sliding to 1.0% and operating margin down to 7.3%, compared with 4.3% and 10.3% respectively a year earlier. The steep fall in earnings, despite relatively modest top-line decline, signals rising costs or weaker pricing power, underscoring a more challenging operating environment for the specialty chemicals group and potentially dampening near-term shareholder returns.

The most recent analyst rating on (JP:3405) stock is a Sell with a Yen1540.00 price target. To see the full list of analyst forecasts on Kuraray Co stock, see the JP:3405 Stock Forecast page.

More about Kuraray Co

Kuraray Co., Ltd. is a Japan-based specialty chemicals and materials manufacturer listed on the Tokyo Stock Exchange. The company produces a range of advanced materials and chemical products that serve industrial and consumer markets worldwide, positioning it as a key player in high-value-added chemical solutions.

Average Trading Volume: 1,725,676

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen543.3B

Find detailed analytics on 3405 stock on TipRanks’ Stock Analysis page.

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