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Kuraray Profit Slumps on Inventory Effects and Isoprene Impairment in FY2025

Story Highlights
  • Kuraray’s FY2025 revenue and profits declined, with net income falling sharply amid impairment losses in its Isoprene segment.
  • Operating income was pressured by inventory valuation losses and weaker sales volumes, leaving bottom-line results below earlier forecasts.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Kuraray Profit Slumps on Inventory Effects and Isoprene Impairment in FY2025

Meet Samuel – Your Personal Investing Prophet

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

Kuraray reported fiscal 2025 net sales of ¥808.4 billion, down from ¥826.9 billion a year earlier, as operating income fell to ¥58.9 billion and ordinary income to ¥51.5 billion. Net income attributable to owners of the parent dropped sharply to ¥7.5 billion, mainly due to impairment losses in the Isoprene segment, despite relatively stable foreign exchange rates and lower domestic naphtha prices.

Management attributed the decline in operating income primarily to negative inventory valuation effects and lower sales volumes across its businesses. Compared with the company’s November 2025 forecast, results were broadly in line on sales and operating profit but significantly weaker at the bottom line, underscoring pressure on profitability in certain segments and highlighting ongoing challenges in demand and portfolio performance.

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 chemical manufacturer operating globally in specialty chemicals and materials. The company’s portfolio typically includes resins, synthetic fibers, and performance materials that serve automotive, construction, packaging, and other industrial markets, with earnings sensitive to raw material and energy costs as well as global demand cycles.

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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