Kuraray Co. Ltd Overview
Kuraray is a Tokyo-headquartered, globally diversified specialty-chemicals company whose economic engine is a vertically integrated vinyl-acetate chain running from vinyl acetate monomer through polyvinyl alcohol (PVOH) resin into high-value derivatives: optical-use PVA film for LCD polarisers, water-soluble PVOH film (MonoSol) for unit-dose detergents, PVB and ionoplast safety-glass interlayers (Trosifol, SentryGlas) and EVAL EVOH barrier resin. Around these franchises sit an isoprene-chemistry platform (SEPTON elastomers, GENESTAR heat-resistant polyamide), a functional-materials portfolio (Calgon Carbon activated carbon, Kuraray Noritake dental materials, methacrylates) and legacy fibres and leather (CLARINO, VECTRAN, KURALON). Roughly 80% of FY2025 sales of ¥808.4bn were generated outside Japan. The company holds globally leading positions in several niche materials, but group profitability has compressed sharply since 2024 as competition intensified in PVB and PVOH, Isoprene suffered losses and impairments, and the stock trades at ≈0.7x book—making the transition beyond the expiring "PASSION 2026" plan the defining investment question.
What the company does
Kuraray manufactures and sells polymer resins, films, specialty chemicals, fibres, activated carbon, dental materials and related engineered products, and runs a trading subsidiary. It describes itself as a specialty chemical company pursuing "sustainable growth", guided by the corporate mission "For people and the planet—to achieve what no one else can" (Kuraray Report 2026; President's Message). Its long-term vision, "Kuraray Vision 2026", and the Sustainability Long-Term Vision state that "as a sustainability leader, Kuraray will develop innovative solutions with unique products and cleaner technologies to improve the natural environment and enhance quality of life".
Company's own segment description (Kuraray Report 2026 / FY2025 Financial Review)
| Segment | Company description (condensed) |
|---|---|
| Vinyl Acetate | PVOH resin, optical-use poval film, Advanced Interlayer Solutions (PVB film, SentryGlas ionoplast), water-soluble PVOH film (MonoSol), EVAL EVOH resin |
| Isoprene | Isoprene chemicals and elastomers (SEPTON, HYBRAR, liquid rubber), GENESTAR heat-resistant polyamide resin |
| Functional Materials | Methacrylate, Medical (dental), Environmental Solutions (activated carbon); from FY2026 also the Electronics Materials Promotion Division (moved from Others) |
| Fibers and Textiles | CLARINO man-made leather; fibres and industrial materials (KURALON, VECTRAN); consumer goods and materials (KURAFLEX nonwoven, MAGIC TAPE) |
| Trading | Fibre-related businesses and resins/chemicals trading (Kuraray Trading Co., Ltd.) |
| Others | Businesses outside reportable segments, incl. engineering |
Business and revenue model
| Dimension | Characterisation |
|---|---|
| Revenue mix | Overwhelmingly product sales recognised at delivery. Construction-type contracts (environmental solutions/environmental business in Functional Materials; engineering in Others) recognised over time. Revenue other than from customer contracts is immaterial (FY2025 notes). No material subscription or licensing revenue disclosed; licensing occurs in dental (e.g., patent licences with 3M in 2018, Ivoclar Vivadent in 2019) but amounts are not disclosed |
| Pricing | Contract and list price-based; frequent public price revisions to pass through naphtha, natural gas and logistics costs (e.g., eleven price-revision notices between February and May 2026) |
| Value-chain position | Upstream-integrated: VAM → PVOH → film/EVOH/PVB in-house; isoprene chemistry from C4/C5 streams; coal-based activated carbon with reactivation services. Sells mainly to converters and OEMs (polariser makers, glass laminators, packaging converters, detergent formulators, auto suppliers, dental labs, water utilities) |
| Customer types | B2B industrial and consumer-goods manufacturers; municipal water utilities (activated carbon); dental clinics/labs via distributors |
| End-markets | Displays/electronics (LCD/OLED polarisers, semiconductor and AI-server connectors), construction (laminated architectural glass, cement reinforcement), automotive (windshield interlayers, fuel-tank barrier, EV components), food packaging, household care (unit-dose pods), water treatment (drinking water, PFAS removal), healthcare/dental, apparel/footwear/sports, cell culture (emerging) |
| Geographic exposure | Japan 20.0%, Europe 25.2%, United States ≈23.3%, China ≈14.8%, Asia ex-China ≈10.4%, other ≈6.3% (FY2025; see Section 7 on mapping) |
Independent characterisation
Kuraray is best understood as a "niche-leader portfolio" anchored by one cash engine. The Vinyl Acetate segment generated ≈50% of FY2025 sales but more than 100% of segment operating income before corporate costs (¥62.5bn of ¥80.0bn aggregated positive segment income; ¥58.9bn consolidated after a ¥20.1bn corporate/elimination charge). Its franchises enjoy process know-how barriers, qualification lock-in and global four-region production. Outside this core, returns are thin: Functional Materials earns mid-single-digit margins on large invested capital (Calgon Carbon goodwill and customer assets), Isoprene has lost money every year since its 2023 Thai plant start-up, and Fibers & Textiles is sub-scale. The strategic problem is therefore not franchise quality but capital allocation: ROIC fell to 5.1% in FY2025 versus a PASSION 2026 target of 8–9%, and the market values the equity below book.
Strategy
Stated strategy (Kuraray Report 2026; President's Message)
Mission: "For people and the planet—to achieve what no one else can."
Long-term vision: "Kuraray Vision 2026" — a specialty chemical company contributing to sustainability.
Medium-term plan: "PASSION 2026" (FY2022–FY2026), built on Three Challenges: (1) Sustainability as an opportunity; (2) Innovations starting from networking; (3) Transformation of people and organization.
Portfolio policy: "Make our business portfolio more enhanced"—invest in "growth and expansion" and "fundamental" businesses; "transfer, shrink, or withdraw" from businesses not expected to improve.
Capital policy: total return ratio of at least 50% of net income; maintain or increase DPS; continuous share buybacks; ROIC managed by business with business-specific hurdle rates.
PASSION 2026 targets and trajectory
| KPI | Original target (Feb 2022) | Revised (Feb 2025) | FY2025 actual | FY2026 forecast (Aug 2026) |
|---|---|---|---|---|
| Net sales | ¥750bn | ¥900bn | ¥808.4bn | ¥880bn |
| Operating income | ¥100bn | — | ¥58.9bn | ¥70bn |
| ROIC | 8% | 9% | 5.1% | 6% |
| EBITDA | ¥170bn | — | ¥143.6bn | ¥155bn |
| EBITDA margin | 23% | 21% | 17.8% | 18% |
| ROE | 10% | — | 1.0% | 5% |
Assessment: the sales target will be exceeded (largely through inflation and yen weakness) but every profitability KPI will be missed by a wide margin. The plan expires in December 2026; a successor plan has not been announced as of this date (historically, Kuraray unveils new plans in February alongside full-year results—expected but unconfirmed).
Strategic initiatives in the last 24 months
| Date | Initiative | Type | Detail / target |
|---|---|---|---|
| Feb 2025 | New GHG targets; SBTi commitment letter | ESG | Scope 1+2 −63% and Scope 3 Cat.1 −37.5% by 2035 vs 2021; net zero 2050 |
| Feb 2025 | KURARITY and Vecstar FCCL exits | Portfolio pruning | Production ended |
| Apr 2025 | Nelumbo acquisition | New technology platform | PFAS-free surface modification |
| Jun 2025 | Polyester-related manufacturing discontinued | Portfolio pruning | Saijo polyester resin/filament exit in FY2026 |
| Jun 2025 | Optical poval film capacity expansion (Saijo) | Growth capex | Wider film for large panels; start 2027 |
| Sep 2025 | Kuraray Asia Pacific Technical Center, Singapore | Customer innovation | Application development for Asia |
| Sep 2025 | Increased stake in Kuraray GC Advanced Materials | Consolidation | Thai butadiene-derivative JV |
| Oct 2025 | US virtual power purchase agreement | Decarbonisation | Renewable electricity |
| Nov 2025 | Partial IP transfer of KURARITY | Portfolio pruning | Monetise IP |
| Dec 2025 | Transfer of China methacrylic sheet subsidiary | Portfolio pruning | Completed by Aug 2026 |
| Jan 2026 | Organisational reform (electronics materials into Functional Materials) | Organisation | Semiconductor/AI focus |
| Feb 2026 | Middle East regional office | Market expansion | Interlayers, water treatment |
| Feb 2026 | Calgon Columbus reactivation expansion | Growth capex | +12,300 t/yr; Q1 2028 |
| Mar 2026 | DOWA Eco-System joint study | Circular economy | Reactivated-carbon resource circulation |
| 2,026 | US EVAL expansion; Singapore EVAL plant | Growth capex | Singapore start 2027 |
| Aug 2026 | Miyoshi dental line | Growth capex | Inorganic dental materials |
| Ongoing | Shareholder returns | Capital policy | ¥20bn (2024), ¥30bn (2025), ¥10bn (2026) buybacks; centenary dividend |
Cost programmes
No group-wide quantified cost-reduction programme with a ¥ target was identified. Restructuring is executed asset-by-asset (impairments, capacity cuts, exits), and outside directors have publicly called for "organizational reforms and the optimization of selling and administrative expenses" (Outside Director Mikami, Kuraray Report 2026).
Management guidance
FY2026 (revised 7 Aug 2026): net sales ¥880bn; operating income ¥70bn; ordinary income ¥64bn; net income ¥40bn; EPS ¥132.76; DPS ¥64 (incl. ¥10 commemorative); ROIC 6%, ROE 5%, EBITDA ¥155bn (18% margin). Assumptions: USD/JPY 159, EUR/JPY 182, domestic naphtha ¥92,000/kl, US natural gas US$3.2/MMBtu, European gas €52/MWh.
Products & Services
Pricing models are not publicly disclosed unless noted; Kuraray sells on negotiated contract/list prices and publicises periodic price revisions.
Vinyl Acetate segment
| Product / brand | Description & key capabilities | Target customers / applications | Latest status (year) |
|---|---|---|---|
| KURARAY POVAL / EXCEVAL / ELVANOL PVOH resins | Water-soluble polymer; film-forming, adhesive, barrier, dispersant; four-region production (Japan, Europe, US, Asia) | Paper coating, adhesives, PVC suspension polymerisation, textile sizing, PVB/film feedstock | Price revisions Mar–Apr 2026; US plant temporary suspension Oct 2025; management briefing on PVOH growth Jun 2025 |
| MOWITAL PVB resins | Polyvinyl butyral resins | Coatings, inks, ceramic binders, technical applications | Price increase announced 13 Apr 2026 |
| Optical-use Poval film | PVA film for polariser base; wide-width lines (5,000mm-class) for large TV panels | LCD/OLED polariser makers | New Kurashiki line 2024; Saijo expansion decided Jun 2025 (start 2027) |
| MonoSol water-soluble PVOH film | Cold-water-soluble film; brand owner partnerships (P&G "Partner of the Year" 2012) | Soluble unit-dose detergents, agrochemical packaging, industrial | Poland plant started 2024; 1H FY2026 volumes down on weak SUD demand |
| TROSIFOL PVB interlayers | Standard, acoustic (The Wedge Acoustic, Shadeband), structural (Extra Stiff Pro), SkyViera (ambient-light sunroofs), CamViera, BirdSecure, Spallshield | Automotive windshields/sunroofs, architectural laminated glass | SkyViera selected by major Indian automaker for EV panoramic sunroof (Sep 2025); subject of Sekisui patent litigation (acoustic wedge products) |
| SentryGlas / SentryGlas Xtra (SGX) ionoplast interlayers | Ionoplast interlayer ≈100x stiffer than PVB; structural and hurricane/blast glazing | Structural glass facades, balustrades, floors | Glass Magazine Awards (Dec 2025); management briefing Dec 2025; China IP win (Jul 2026) |
| EVAL EVOH resin | Ethylene-vinyl alcohol copolymer with very high gas-barrier properties; grades incl. SC series (stretch/shrink, 2021), AP (oxygen-absorbing) | Food packaging, automotive fuel tanks, geomembranes, pipes | Belgium expansion 2024; US expansion 2026; Singapore new plant planned 2027; APR Design for Recyclability recognition (Mar 2026); ISCC PLUS (Texas, Dec 2025) |
| EVAL film / KURARISTER | Barrier films; KURARISTER transparent high-barrier film (CF grade for retort) | Retort food, medical packaging | Price revisions with EVAL (Mar 2026) |
| PLANTIC | Bio-based (starch) barrier material | Meat/fresh produce trays | Part of Plantic Technologies (acquired 2015) |
| Vinyl acetate monomer (VAM) | Captive and merchant VAM (US La Porte) | Internal chain; external | ISCC PLUS certified supply chain from La Porte (Nov 2024) |
Isoprene segment
| Product / brand | Description | Applications | Latest status |
|---|---|---|---|
| Isoprene chemicals (e.g., MPD 3-methyl-1,5-pentanediol, isobutylene/butadiene derivatives) | Fine and specialty chemicals | Urethanes, detergents, solvents, fragrances, cosmetics, pharma/agro intermediates, electronic materials | Impairment ¥15.0bn (FY2025); price revisions Apr 2026; ISCC PLUS for seven Kashima products (Feb 2026) |
| SEPTON / HYBRAR | Hydrogenated styrenic block copolymers (HSBC) and vibration-damping grades | Medical, cables, adhesives, automotive, consumer | Styrenic TPE impairment ¥10.6bn (FY2025); multiple price increases 2024–2026 |
| TU-Polymer | Thermoplastic polymer compounds | Moulded goods | Price increases (Feb, Mar, May 2026) |
| Liquid rubber (LIR, incl. bio-based farnesene rubber) | Low-MW polyisoprene/polybutadiene | Tyre compounds (ice grip), adhesives | Pirelli Material Innovation Award (Dec 2025) |
| ISOBAM | Isobutylene–maleic anhydride copolymer | Dispersants, binders | Price revision Mar 2026 |
| GENESTAR PA9T | Heat-resistant polyamide; low water absorption; lead-free soldering compatible; blister-resistant grade (2024); high tracking resistance for 1,000V EVs | Connectors (incl. AI data-centre servers), automotive electricals, coolant control valves | Thai capacity supports global supply (26,000 t/yr cited by trade press); SPE Automotive Award 2025; price increases Sep 2025 (¥200/kg Japan, US$1.50/kg overseas), Mar and Apr 2026 |
| KURARITY acrylic block copolymer | Transparent acrylic TPE | Adhesives, optical | Production ended at Niigata; portion of IP transferred (Nov 2025) |
Functional Materials segment
| Product / brand | Description | Applications | Latest status |
|---|---|---|---|
| PARAPET PMMA; MMA monomer; methacrylic resin sheets | Optical-grade methacrylates | Signage, displays, automotive lighting | MMA capacity reduced from Jul 2025; ¥9.5bn impairment (FY2024); China sheet subsidiary transferred (Dec 2025) |
| Kuraray Noritake Dental — CLEARFIL (adhesives/composites), PANAVIA (resin cements), KATANA (zirconia, multi-layer), Noritake ceramics | Adhesive dentistry and CAD/CAM materials; layered-ceramic technology | Dental clinics and laboratories (strong in Europe/US cosmetic dentistry) | Miyoshi inorganic materials line started operation (Aug 2026); bone-graft substitute exit (Mar 2024) |
| Calgon Carbon activated carbon (virgin and reactivated, granular and powdered) | Coal-, coconut- and wood-based carbons; reactivation services; equipment | Drinking water (incl. PFAS removal), industrial purification, mercury control, food & beverage | US virgin line started 2024; Columbus, Ohio reactivation expansion +12,300 t/yr (start Q1 2028); DOWA Eco-System joint study on reactivation (Mar 2026); Belgium reactivation (2022) |
| UV disinfection and ballast water systems (Calgon Carbon equipment) | UV treatment systems | Municipal water, marine | — |
| KURARAY AQUA membranes (e.g., GL hollow-fibre membrane module) | Water-treatment membranes | Industrial wastewater reuse | Ichimura Prize (2023) |
| Electronics materials (Electronics Materials Promotion Division) | Materials for semiconductors/electronics; Vecstar LCP film (FCCL production ended 2025) | Semiconductor, high-frequency circuits | Moved into Functional Materials from FY2026; SEMICON Taiwan 2025/2026; media briefing on semiconductor/AI data-centre products (6 Oct 2026) |
| SCAPOVA PVA microcarriers (Life Innovation) | PVA hydrogel scaffolds for cell culture; SCAPOVA AS grade | Regenerative medicine, iPS cell culture, alternative-protein (AOF) | Launch of SCAPOVA AS (Nov 2025); two products launched in US (Jan 2026) |
| Surface-modification technology (Nelumbo) | PFAS-free water-repellent, anti-ice, anti-corrosion surface treatments | Fibres, polymers, HVAC heat exchangers | Acquired Apr 2025 |
Fibers and Textiles segment
| Product / brand | Description | Applications | Latest status |
|---|---|---|---|
| CLARINO | Man-made (synthetic suede/leather) incl. recycled-PET grades | Shoes, sports balls (FIVB volleyball), luxury goods, automotive, laptop covers (Lenovo ThinkPad) | Price revisions Mar 2026; 1H FY2026 volume recovery |
| KURALON / KURALON K-II | PVA fibre | Cement/concrete reinforcement, ropes, industrial | Price revisions Apr 2026; weak construction demand |
| VECTRAN | Liquid-crystal polymer (polyarylate) high-strength fibre | Aerospace (airbags for landers), ropes, cables | New Saijo line started 2025 |
| KURAFLEX | Meltblown nonwoven fabrics | Wipes, filters | Dry-laid nonwoven exit; meltblown capacity reduced (Jul 2024); Kuraray Kuraflex merged (2025) |
| MAGIC TAPE / MAGILOCK / FREE MAGIC | Hook-and-loop fasteners incl. RCS-certified recycled grades | Apparel, footwear, medical, automotive | Brand site renewal (Oct 2025) |
| Polyester filament and staple fibre | Commodity fibres | Apparel | Manufacturing of polyester resin and filaments at Saijo to be discontinued in FY2026 |
Trading and Others
| Business | Description |
|---|---|
| Kuraray Trading Co., Ltd. | Fibre and textile products (sportswear, outdoor), resins and processed products (Asia focus) |
| Engineering (Kuraray Engineering) | Plant engineering; over-time revenue recognition |
| Other services | Kurashiki Kokusai Hotel, travel services, plastics processing (Kuraray Plastics) |
Financial Narrative
Sources: Kuraray Report 2026 11-Year Financial Summary (FY2015–FY2025); Kuraray Report 2025/2026 Financial Sections; S&P Global Market Intelligence (via StockAnalysis) for line items not in the 11-year table (gross profit, balance-sheet components). Ratios derived unless stated as company KPI.
Margins and growth (derived)
Revenue CAGR: FY2021–FY2025 (4 years) 6.5%; FY2020–FY2025 (5 years, from ¥541.8bn) 8.3% (derived). Much of the FY2021–FY2022 growth was price- and FX-driven (USD/JPY average 110 → 132).
Below-the-line items (FY2023–FY2025). Extraordinary losses: FY2023 ¥13.4bn (incl. ¥7.8bn US fire litigation settlement, ¥2.4bn Vecstar impairment); FY2024 ¥29.8bn (¥16.8bn impairments incl. ¥9.5bn methacrylate; ¥4.5bn loss on business liquidation; ¥5.3bn asset disposals; ¥1.9bn contingent-liability loss); FY2025 ¥38.0bn (¥29.6bn impairments—¥15.0bn Isoprene Chemicals at Kamisu/Tainai/Thailand and ¥10.6bn styrenic TPE at Kamisu/US/Thailand; ¥4.6bn suspension costs). The effective tax rate rose to ≈75% in FY2025 as losses in some entities were not tax-effected.
Balance sheet
At 30 June 2026: total assets ¥1,350.8bn; net assets ¥768.4bn; equity ratio 55.9%; total debt ≈¥318.7bn; net debt ≈¥191.4bn (S&P data).
Cash flow
1H FY2026: OCF ¥59.0bn (vs ¥42.2bn), investing CF ex-M&A/fund management ¥(56.0)bn, FCF ¥3.0bn, capex (acceptance basis) ¥53.8bn. FY2026 plan: capex ¥117.0bn (acceptance) / ¥78.0bn (decision); D&A ¥85.0bn.
Returns, leverage and efficiency
Interest coverage on reported P&L interest expense: FY2024 31.1x (¥85.1bn / ¥2.74bn); FY2025 21.0x (¥58.9bn / ¥2.81bn).
Commentary on trends, inflections and drivers
Revenue. Sales rose 49% from the FY2020 COVID trough (¥541.8bn) to a FY2024 peak (¥826.9bn), but volume contributed little: the step-ups in FY2021–FY2022 came from aggressive price pass-through of naphtha and gas inflation and from yen depreciation (USD/JPY 107 → 152 average over FY2020–FY2024), because ≈80% of sales are overseas. FY2025 marked the first decline (-2.2%) as European and US demand softened and price competition rose. FY2026 guidance (¥880bn, +8.9%) is again largely price and FX: the August 2026 bridge shows selling price/mix +¥19.7bn offsetting raw materials/fuel/FX -¥10.7bn, with volume essentially flat (+¥0.3bn).
Margins. EBITDA margin has drifted from ≈21% to 17.8% and is guided at 18% for FY2026, well below the original PASSION 2026 aspiration of 23%. Three structural factors explain this: (i) rising depreciation from heavy 2018–2024 capex (D&A up 44% FY2021–FY2025) on assets that have not yet filled—Thailand isoprene, US activated carbon, Poland film; (ii) SG&A growth (¥131.9bn → ¥187.6bn, +42%) outpacing sales (+28%), including higher freight, salaries and R&D; (iii) erosion of PVB and PVOH spreads from Asian competitors.
Net income inflection. Net income has fallen four years running (¥54.3bn → ¥7.5bn) with a widening gap between operating and net income due to recurring "extraordinary" restructuring losses (¥13.4bn, ¥29.8bn, ¥38.0bn in FY2023–FY2025). Management frames these as portfolio pruning; investors increasingly treat them as recurring. FY2026 guidance of ¥40bn assumes no material further write-downs.
Balance sheet and cash. Leverage is moderate (net debt/EBITDA 1.2x; equity ratio 57%) and JCR rates the company AA-. However, FCF collapsed to near zero in FY2025 as capex (¥94bn cash) rose while OCF fell, and the company funded ¥47bn of shareholder returns largely with incremental debt (net borrowing +¥39bn). The cash conversion cycle lengthening to >215 days, chiefly from inventory days rising to 174, is a red flag for a business with commodity-like exposure in parts of the portfolio; the stock of finished goods and merchandise rose to ¥178bn.
Capital efficiency. ROE has declined from 9.0% to 1.0%, below cost of equity under any reasonable assumption. ROIC at 5.1% versus a company target of 8–9% is the KPI management has explicitly acknowledged will be missed in FY2026 (Kuraray Report 2026: KPIs "fall short of the targets").
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Segment net sales (JPY Bn)
| Segment net sales (JPY Bn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Vinyl Acetate | 406.8 | 414.9 | 404.5 |
Isoprene | 65.7 | 76.4 | 80.4 |
Functional Materials | 189.8 | 208.0 | 206.9 |
Fibers and Textiles | 61.9 | 62.7 | 60.7 |
Trading | 61.6 | 67.6 | 68.8 |
Others | 45.7 | 50.9 | 40.8 |
Elimination and Corporate | -50.4 | -53.5 | -53.7 |
Total consolidated | 780.9 | 826.9 | 808.4 |
Segment operating income (JPY Bn)
| Segment operating income (JPY Bn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Vinyl Acetate | 86.3 | 87.6 | 62.5 |
Isoprene | -10.9 | -9.5 | -4.9 |
Functional Materials | 10.3 | 12.9 | 10.8 |
Fibers and Textiles | 1.8 | 1.2 | 2.6 |
Trading | 5.2 | 5.9 | 6.0 |
Others | 0.5 | 2.3 | 1.8 |
Elimination and Corporate | -17.8 | -15.4 | -20.1 |
Total consolidated | 75.5 | 85.1 | 58.9 |
Segment operating margin (%)
| Segment operating margin (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Vinyl Acetate | 21.2 | 21.1 | 15.5 |
Isoprene | -16.6 | -12.4 | -6.1 |
Functional Materials | 5.4 | 6.2 | 5.2 |
Fibers and Textiles | 2.9 | 1.9 | 4.3 |
Trading | 8.4 | 8.7 | 8.7 |
Others | 1.1 | 4.5 | 4.4 |
Group | 9.7 | 10.3 | 7.3 |
Segment sales YoY growth (%)
| Segment sales YoY growth (%) | FY2024 | FY2025 |
|---|---|---|
Vinyl Acetate | 2.0 | -2.5 |
Isoprene | 16.3 | 5.3 |
Functional Materials | 9.6 | -0.5 |
Fibers and Textiles | 1.3 | -3.1 |
Trading | 9.8 | 1.7 |
Others | 11.4 | -19.8 |
Segment share of consolidated sales, pre-elimination (%)
| Segment share of consolidated sales, pre-elimination (%) | FY2023 | FY2024 |
|---|---|---|
Vinyl Acetate | 52.1 | 50.2 |
Isoprene | 8.4 | 9.2 |
Functional Materials | 24.3 | 25.2 |
Fibers and Textiles | 7.9 | 7.6 |
Trading | 7.9 | 8.2 |
Others | 5.9 | 6.2 |
Revenue by Segment
| Segment (JPY Bn) | 1H FY2025 sales | 1H FY2026 sales | 1H FY2025 OI | 1H FY2026 OI | FY2026F sales (Aug) | FY2026F OI (Aug) |
|---|---|---|---|---|---|---|
Vinyl Acetate | 202.9 | 217.1 | 29.9 | 25.4 | 431.0 | 63.0 |
Isoprene | 39.9 | 45.9 | -1.3 | 1.8 | 96.0 | 2.5 |
Functional Materials | 98.6 | 110.3 | 1.7 | 4.9 | 234.0 | 13.5 |
Fibers and Textiles | 29.8 | 31.9 | -0.1 | 4.2 | 66.0 | 5.5 |
Trading | 33.9 | 37.3 | 3.0 | 3.7 | 74.0 | 7.0 |
Others | 21.7 | 15.8 | 1.9 | 0.8 | 40.0 | 1.5 |
Elimination & Corporate | -26.8 | -27.3 | -8.9 | -11.9 | -61.0 | -23.0 |
Total | 400.0 | 431.0 | 26.3 | 28.8 | 880.0 | 70.0 |
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View Subscription PlansIncome Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (JPY Bn) | 629.4 | 756.4 | 780.9 | 826.9 | 808.4 |
Gross profit (JPY Bn) | 204.1 | 241.7 | 240.0 | 267.5 | 246.5 |
Operating income (JPY Bn) | 72.3 | 87.1 | 75.5 | 85.1 | 58.9 |
EBITDA = OI + D&A (JPY Bn, company KPI) | 131.3 | 152.6 | 152.6 | 170.3 | 143.6 |
Ordinary income (JPY Bn) | 68.8 | 84.1 | 69.0 | 81.5 | 51.5 |
Income before income taxes (JPY Bn) | 58.7 | 78.0 | 61.3 | 53.2 | 19.8 |
Net income attributable to owners (JPY Bn) | 37.3 | 54.3 | 42.4 | 31.7 | 7.5 |
EPS basic (JPY) | 108.32 | 161.13 | 126.80 | 96.33 | 23.62 |
Dividend per share (JPY) | 40 | 44 | 50 | 54 | 54 |
R&D expenditure (JPY Bn) | 20.8 | 22.7 | 24.4 | 25.7 | 28.4 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 32.4 | 32.0 | 30.7 | 32.4 | 30.5 |
Operating margin (%) | 11.5 | 11.5 | 9.7 | 10.3 | 7.3 |
EBITDA margin (%) | 20.9 | 20.2 | 19.5 | 20.6 | 17.8 |
Net margin (%) | 5.9 | 7.2 | 5.4 | 3.8 | 0.9 |
Net sales growth YoY (%) | 16.2 | 20.2 | 3.2 | 5.9 | -2.2 |
Balance Sheet and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (JPY Bn) | 1,091.0 | 1,221.5 | 1,254.5 | 1,291.2 | 1,303.5 |
Cash and short-term investments (JPY Bn) | 155.8 | 128.6 | 134.6 | 121.7 | 108.3 |
Short-term debt incl. current LTD, CP and current bonds (JPY Bn) | 89.5 | 84.9 | 64.7 | 52.0 | 88.7 |
Long-term debt incl. bonds (JPY Bn) | 217.9 | 239.5 | 217.3 | 192.3 | 196.2 |
Total interest-bearing debt (JPY Bn, company) | 307.4 | 324.4 | 282.0 | 244.3 | 284.9 |
Net debt (JPY Bn) | 151.6 | 195.8 | 147.4 | 122.6 | 176.6 |
Total net assets (JPY Bn) | 579.6 | 668.5 | 736.2 | 781.8 | 755.2 |
Shareholders' equity excl. NCI (JPY Bn) | 560.4 | 647.1 | 714.6 | 764.3 | 742.8 |
Goodwill (JPY Bn) | 52.6 | 56.1 | 55.4 | 53.6 | 52.2 |
Other intangibles (JPY Bn) | 61.4 | 65.4 | 65.1 | 62.3 | 58.4 |
Working capital (JPY Bn) | 250.7 | 312.6 | 351.2 | 367.0 | 350.2 |
Book value per share (JPY) | 1,627.84 | 1,932.37 | 2,133.75 | 2,359.03 | 2,418.65 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (JPY Bn) | 78.2 | 51.7 | 129.3 | 138.3 | 98.6 |
Capex, cash purchases of PP&E and intangibles (JPY Bn) | 68.4 | 71.6 | 59.0 | 71.4 | 94.2 |
Capex, company basis (JPY Bn) | 65.9 | 72.6 | 67.3 | 84.3 | 106.8 |
Free cash flow = OCF − cash capex (JPY Bn) | 9.8 | -19.9 | 70.3 | 66.9 | 4.4 |
Free cash flow, company definition OCF + investing CF (JPY Bn) | 12.6 | -16.9 | 66.1 | 62.3 | 0.5 |
Depreciation and amortisation (JPY Bn) | 59.0 | 65.5 | 77.2 | 85.3 | 84.7 |
Dividends paid (JPY Bn) | 13.4 | 13.9 | 16.1 | 17.3 | 17.4 |
Share buybacks (JPY Bn) | 0.0 | 10.0 | 0.0 | 20.0 | 30.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%, company) | 7.0 | 9.0 | 6.2 | 4.3 | 1.0 |
ROA = OI / avg total assets (%, company) | 6.7 | 7.5 | 6.1 | 6.7 | 4.5 |
ROIC = NOPAT / (debt + equity) (%, company) | 6.1 | 7.0 | 6.2 | 7.3 | 5.1 |
Equity ratio (%, company) | 51.3 | 52.9 | 56.9 | 59.2 | 57.0 |
Current ratio (x) | 2.14 | 2.41 | 2.75 | 2.85 | 2.53 |
Debt to equity (x, company) | 0.55 | 0.50 | 0.39 | 0.32 | 0.38 |
Net debt to EBITDA (x) | 1.15 | 1.28 | 0.97 | 0.72 | 1.23 |
Interest coverage = OI / cash interest paid (x) | 47.0 | 73.4 | 33.4 | 40.7 | 32.4 |
Asset turnover = sales / avg assets (x) | 0.59 | 0.65 | 0.63 | 0.65 | 0.62 |
Days sales outstanding (days) | 78.5 | 75.5 | 75.3 | 73.1 | 80.1 |
Days inventory outstanding (days) | 135.0 | 159.6 | 153.8 | 167.6 | 174.4 |
Days payables outstanding (days) | 42.6 | 37.4 | 33.1 | 38.9 | 38.0 |
Cash conversion cycle (days) | 170.9 | 197.7 | 196.0 | 201.8 | 216.5 |
Payout ratio (%, company) | 36.9 | 27.3 | 39.4 | 56.1 | 228.7 |
Total return ratio (%, company) | 36.9 | 45.5 | 39.4 | 118.7 | 628.1 |
Net sales by region (JPY Bn)
| Net sales by region (JPY Bn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Japan | 166.8 | 172.1 | 161.8 |
United States | 171.3 | 183.5 | 188.1 |
Europe | 204.9 | 206.5 | 203.7 |
China | 105.2 | 123.6 | 119.7 |
Asia excluding China | 84.2 | 87.6 | 84.2 |
Other regions | 48.5 | 53.5 | 51.0 |
Total | 780.9 | 826.9 | 808.4 |
Regional share of sales (%)
| Regional share of sales (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Japan | 21.4 | 20.8 | 20.0 |
United States | 21.9 | 22.2 | 23.3 |
Europe | 26.2 | 25.0 | 25.2 |
China | 13.5 | 14.9 | 14.8 |
Asia excluding China | 10.8 | 10.6 | 10.4 |
Other regions | 6.2 | 6.5 | 6.3 |
Regional sales growth YoY (%)
| Regional sales growth YoY (%) | FY2024 | FY2025 |
|---|---|---|
Japan | 3.2 | -6.0 |
United States | 7.1 | 2.5 |
Europe | 0.8 | -1.4 |
China | 17.5 | -3.2 |
Asia excluding China | 4.0 | -3.9 |
Other regions | 10.3 | -4.7 |
Region Overview
| Region | Group companies | Production bases |
|---|---|---|
Japan | 17 | 9 |
United States | 11 | 20 |
Europe | 26 | 12 |
China | 10 | 5 |
Asia (ex-China) | 15 | 5 |
Other regions | 10 | 1 |
Share Price
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Approx. year-end share price (JPY, derived) | 997 | 1,063 | 1,420 | 2,283 | 1,587 |
PER at year-end (x, company) | 9.2 | 6.6 | 11.2 | 23.7 | 67.2 |
PBR at year-end (x, company) | 0.6 | 0.5 | 0.7 | 1.0 | 0.7 |
Horizon | Return (price only, approximate) | — | — | — | — |
Latest close | ¥1,805.5 (25 Sep 2026) | — | — | — | — |
YTD 2026 | ≈+14% (vs derived end-2025 ¥1,587) | — | — | — | — |
1-year | +3.4% (52 weeks to 28 Aug 2026, S&P data) | — | — | — | — |
≈3-year (from end-2023) | ≈+27% | — | — | — | — |
≈5-year (from end-2021) | ≈+81% | — | — | — | — |
52-week range | ¥1,490.5 – ¥2,088.0 | — | — | — | — |
Beta (5Y) | 0.05 (S&P data) | — | — | — | — |
Valuation Multiples
| Multiple | Kuraray | Comment |
|---|---|---|
Market cap | ¥544.0bn | 301.3m shares |
Enterprise value | ≈¥748bn (derived: market cap + net debt ¥191.4bn + NCI ¥12.7bn) | — |
P/E trailing | ≈72x | Depressed by impairments |
P/E forward (company FY2026 EPS ¥132.76) | ≈13.6x | Consensus forward ≈14.8x (S&P) |
EV/EBITDA TTM | ≈5.1x | EBITDA ¥146.9bn |
EV/Sales TTM | ≈0.89x | Sales ¥839.5bn |
P/B | ≈0.72x | BPS ¥2,508 (Jun 2026) |
Dividend yield | 3.0% (ordinary ¥54); 3.5% (FY2026 plan ¥64 incl. commemorative) | — |
Capital Markets
| Item | Value | Source |
|---|---|---|
Consensus rating | Hold (8–9 analysts) | S&P data via StockAnalysis (Aug–Sep 2026) |
Average price target | ¥1,745–¥1,750 (≈3% downside) | Same |
FY2026 revenue consensus | ¥873.8bn (earlier in 2026) | Simply Wall St |
3-year revenue growth forecast | ≈4.7–5.2% p.a. | S&P / Simply Wall St |
Notable rating action | Goldman Sachs double downgrade Buy → Sell, PT ¥1,540 (c. Nov 2025) | TheFly via StockAnalysis |
Dividend per share (JPY)
| Dividend per share (JPY) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Ordinary DPS | 40 | 44 | 50 | 54 | 54 |
Credit Ratings
| Agency | Rating | Outlook | Last action |
|---|---|---|---|
Japan Credit Rating Agency (JCR) | AA- (long-term issuer) | Stable | Affirmed (rating date 27 Apr 2026; published 1 May 2026); downgraded from AA in May 2021 |
Moody's / S&P / Fitch | No public rating identified | — | — |
Debt Maturity Profile
| Maturity bucket (JPY Bn) | Within 1 yr | 1–2 yrs | 2–3 yrs | 3–4 yrs | 4–5 yrs | Over 5 yrs |
|---|---|---|---|---|---|---|
Bonds | 0.0 | 10.0 | 10.0 | 0.0 | 20.0 | 10.0 |
Long-term borrowings | 32.6 | 17.6 | 23.6 | 30.0 | 10.0 | 65.0 |
Lease obligations and liabilities | 6.7 | 5.9 | 4.8 | 3.9 | 3.3 | 24.9 |
Total | 39.3 | 33.5 | 38.4 | 33.9 | 33.3 | 99.9 |
Analyst Conclusions
Management guidance and consensus
Management guides FY2026 to net sales ¥880bn (+8.9%), operating income ¥70bn (+18.9%) and net income ¥40bn, implying a second half of ¥41.2bn operating income versus ¥28.8bn in 1H—a demanding 43% half-on-half step-up reliant on Vinyl Acetate (2H ¥37.6bn vs 1H ¥25.4bn), favourable inventory-valuation swings (+¥6.0bn modelled in 2H) and lower maintenance costs. Consensus (≈¥874bn revenue) broadly accepts the top line; the "Hold" rating and sub-market price target signal scepticism on profit delivery and on the post-2026 strategy.
Bull case
-
Earnings normalisation from a trough. FY2025 net income (¥7.5bn) was depressed by ¥38.0bn of extraordinary losses; with Isoprene depreciation reset and exits largely booked, FY2026 EPS of ¥132.76 puts the stock at ≈13.6x forward and ≈0.72x book—cheap for an AA- rated niche leader.
-
Structural growth vectors are funded. PFAS-driven activated carbon (Columbus expansion), EVOH (Singapore/US), optical film (Saijo), dental (Miyoshi) and AI-server connector materials (GENESTAR) address demand with multi-year visibility.
-
Capital return discipline and PBR pressure. ¥60bn of buybacks in three years, a 3.5% FY2026 yield and outside directors explicitly tracking PBR create a credible path to a successor plan with harder ROIC/ROE commitments and further share-count reduction.
Bear case
-
The core is eroding. Vinyl Acetate margins fell from 21% to 15.5% and fell again in 1H FY2026 (OI −15%) despite price increases, with PVB competition and patent rulings threatening interlayers.
-
Restructuring has become recurring. Impairments in FY2023, FY2024 and FY2025, plus an unfilled capex wave (FCF ≈¥4bn in FY2025; CCC 216 days), suggest capital is still being allocated to sub-cost-of-capital assets; ROIC is guided at only 6% for FY2026.
-
Guidance quality is weak and FX-dependent. FY2025 guidance began at ¥90bn OI and ended at ¥58.9bn; the FY2026 plan is back-half loaded and assumes a ¥159/USD yen—an appreciation would cut translated profits and the price/mix tailwind.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| ≈13 Nov 2026 | Q3 FY2026 results — test of 2H Vinyl Acetate recovery and FY2026 OI ¥70bn |
| Feb 2027 (expected) | FY2026 results and expected unveiling of post-PASSION 2026 medium-term plan: ROIC/ROE targets, portfolio exits (Isoprene, methacrylate), capital policy |
| 2,027 | Start-up of Singapore EVAL plant and Saijo optical film line; utilisation ramp |
| Ongoing | Appeals/outcomes in Sekisui PVB patent cases (Germany, Korea) |
| Ongoing | US PFAS regulatory timetable and municipal procurement pace |
| Ongoing | Naphtha and gas prices post-Middle East disruption; durability of 2026 price increases |
| Ongoing | USD/JPY and EUR/JPY |
| Ongoing | Isoprene profitability after impairments; any further write-downs (goodwill ¥52bn) |
| Mar 2027 | AGM votes on directors (ISS stance given ROE <5%) |
Analyst verdict
Kuraray enters its second century as a company with better franchises than financial results. The vinyl-acetate chain—PVOH, optical PVA film, EVAL, SentryGlas and MonoSol—remains a genuinely advantaged, globally integrated platform that still earns mid-teens margins in a poor year, and the balance sheet (equity ratio 57%, net debt/EBITDA 1.2x, JCR AA-) gives management room to act. The problem is everything around that core. Over five years, the group has spent heavily—capex rising to ¥107bn in FY2025 and the legacy Calgon acquisition still carrying ≈¥52bn of goodwill—yet ROIC has slipped to 5.1%, ROE to 1.0%, free cash flow to near zero and inventory days to 174. Successive impairments in methacrylate, isoprene chemicals and styrenic elastomers confirm that the pruning is real, but they also show that a decade of diversification created assets that do not earn their cost of capital.
FY2026 should mark the earnings trough's exit: net income guided at ¥40bn, a centenary dividend and continued buybacks support a ≈3.5% yield and an equity valued at ≈0.72x book and ≈5x EV/EBITDA. That valuation already discounts much of the bear case. What it does not yet price is credible evidence that management will (i) stabilise Vinyl Acetate margins against Asian PVB and PVOH competition and adverse patent rulings, and (ii) commit, in the successor plan expected in early 2027, to quantified ROIC hurdles, faster exits and cash-conversion targets.
On balance, we view Kuraray as a value-with-a-catalyst situation rather than a quality compounder: neutral-to-positive on a 12-month view, with the February 2027 strategy reset as the decisive event. A plan that explicitly sacrifices top-line ambition for capital efficiency could re-rate the shares toward 1.0x book; another sales-led plan would likely leave the stock range-bound beneath book value.
Data limitations: Segment-by-geography matrices, patent counts, individual executive compensation, MSCI/CDP ratings, independent market-size data, the verbatim Yuho risk section and exact Yuho filing dates were not obtained and are marked accordingly. Regional sales mapping is inferred from report layout and reconciled to totals.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Joined / tenure | Prior roles and notes | Age |
|---|---|---|---|---|
Masaaki Ito | Chairman and Director (chairs Board) | Joined 1980; Director 11 years 9 months; Chairman since Jan 2021 | President & CEO 2015–2020; Outside Director, Hitachi Construction Machinery; Chairperson, Saijo Central Hospital | 68 (GlobalData) |
Hitoshi Kawahara | President and Representative Director (CEO) | Joined Apr 1984; President since Jan 2021; Director 7 years | Previously President, Vinyl Acetate Resin Company; Managing Executive Officer | 63 (Simply Wall St) |
Keiji Taga | Representative Director, Senior Managing Executive Officer | Joined Apr 1984; Rep. Director since Jan 2024 | Responsible for Corporate Sustainability, HR, Purchasing and Logistics | — |
Matthias Gutweiler | Director, Managing Executive Officer | Joined Kuraray Specialities Europe Dec 2001; Director since Mar 2020 | President, Kuraray Europe GmbH; foreign national | — |
Nobuhiko Takai | Director, Managing Executive Officer | Joined Apr 1984; Director since Mar 2020 | President, Functional Materials Company | — |
Tomoyuki Watanabe | Director, Managing Executive Officer | Joined Apr 1988; Director since Mar 2024 | President, Vinyl Acetate Resin Company and Vinyl Acetate Film Company | — |
Yoji Ikemori | Director, Managing Executive Officer | Joined Apr 1986; Director since Mar 2025 | President, Isoprene Company | — |
Keiko Murata | Outside Director (Independent) | Since Mar 2020 | Ex-Economic Planning Agency (1986); Professor, Rissho University; Outside Director (A&S Committee), Tohoku Electric Power | — |
Satoshi Tanaka | Outside Director (Independent) | Since Mar 2020 | Ex-Mitsui & Co. (1981); Representative Director, EVP, Sekisui House; Independent Director, IHH Healthcare | — |
Naoko Mikami | Outside Director (Independent) | Since Mar 2024 | Ex-Ajinomoto (1983; electronic materials, plant management); Outside Director, Showa Sangyo, Earth Corp., Kirin Holdings | — |
Toshifumi Mikayama | Outside Director (Independent) | Since Mar 2025 | Ex-Kirin (1983; biopharmaceutical research); Outside Director, Central Glass; Chairman, Kato Memorial Bioscience Foundation | — |
“—” = not publicly disclosed.
Board of Directors — Hiroaya Hayase
| Name | Role | Since | Background |
|---|---|---|---|
Hiroaya Hayase | Full-time Member | Mar 2024 | Kuraray (joined 1980) |
Hideo Ohi | Full-time Member | Mar 2025 | Kuraray (joined 1982) |
Kenji Komatsu | Outside Member (Independent) | Mar 2026 (new) | Ex-Fuji Bank/Mizuho (1982); Representative Director & Chairperson, Yasuda Logistics |
Nobuyuki Fujii | Outside Member (Independent) | Mar 2019 | Ex-Mitsubishi Corp. (1978); Chairman, Longreach Business Partners; Outside Director, Nippon Aqua |
Tomomi Yatsu | Outside Member (Independent) | Mar 2019 | CPA and attorney (Yatsu Law & Accounting); Outside Director (Audit Committee), NEC |
Executive Leadership Team
| Name | Responsibility |
|---|---|
Akira Omura | Technology Division; Plants in Japan; Environmental & Industrial Safety |
Toshihiro Omatsu | Innovation Networking Center; R&D Division; IP Management Center |
Kazushige Sakamoto | President, Fibers and Textiles Company; Osaka Office |
Junichi Fujiwara | Corporate Management Planning Office; Accounting and Finance (de facto CFO) |
Stanley Fukuyama | DX-IT Division; Confidential Information Management |
Stephen Cox | GM, Advanced Interlayer Solutions Division |
Stevan R. Schott | GM, Environmental Solutions Division; President, Calgon Carbon |
Christian Herrmanns | GM, MonoSol Division; President, MonoSol |
Satoshi Yamaguchi | GM, Medical Division and Life Innovation Development; President, Kuraray Noritake Dental |
Fumio Uegaki | GM, Genestar Division |
Kazunari Matsumoto | GM, Poval Resin Division |
Fuyuo Ueyama | GM, Poval Film Division |
Yoshinobu Nakamura | GM, Methacrylate Division |
Akiko Ide | GM, Corporate Sustainability Division |
Tomohiro Ono | GM, HR Division |
Koichi Takano | GM, Purchasing and Logistics |
Koichi Daifuku | Vice President, Functional Materials Company |
Nobuyoshi Takai | GM, Fibers and Industrial Materials |
Noriaki Namba | GM, Corporate Auditing |
Plant GMs | Takaharu Kawahara (Kashima), Toshiji Kashiwagi (Tsurumi), Motohiro Fukuda (Niigata) |
Directors' Remuneration
| Attribute | Status |
|---|---|
Board size | 11 directors |
Independent outside directors | 4 of 11 (36%) — meets TSE Prime "one-third" expectation |
Gender | 2 women of 11 (18%) |
Nationality | 1 foreign national (Gutweiler) |
Chair/CEO separation | Yes — Chairman Ito (former CEO, non-CEO) / President Kawahara; chair is not independent |
Committees | Audit & Supervisory Board (3 of 5 outside); Corporate Advisory Committee chaired by an outside director (nomination and remuneration advice) |
Remuneration | Includes restricted stock compensation (adopted 2021) and legacy stock options; individual amounts not publicly disclosed in sources reviewed (Japanese rules require disclosure only above ¥100m) |
Board & Management Changes
| Date | Change |
|---|---|
Nov 2023 (effective Jan 2024) | Keiji Taga appointed Representative Director & Senior Managing Executive Officer |
Mar 2024 | Tomoyuki Watanabe joins board; Naoko Mikami appointed Outside Director |
Nov 2024 (effective Jan 2025) | Executive personnel and organisational changes announced |
Mar 2025 | Yoji Ikemori joins board; Toshifumi Mikayama appointed Outside Director; Hideo Ohi joins A&SB |
Nov 2025 (effective Jan 2026) | Executive personnel changes; Electronics Materials Promotion Division moved to Functional Materials |
Mar 2026 | Kenji Komatsu appointed Outside A&SB Member |
Jun 2026 | Resignation of an A&SB member |
Major Shareholders
| Shareholder | Shares (thousands) | % of outstanding |
|---|---|---|
The Master Trust Bank of Japan (Trust Account) | 55,421 | 18.05 |
Custody Bank of Japan (Trust Account) | 21,004 | 6.84 |
National Mutual Insurance Federation of Agricultural Cooperatives | 10,882 | 3.54 |
Nippon Life Insurance Company | 10,848 | 3.53 |
Kuraray Employee Stock Ownership Plan | 6,067 | 1.98 |
BNYMSANV as Agent/Clients Lux UCITS Non Treaty 1 | 6,032 | 1.96 |
JPMorgan Securities Japan Co., Ltd. | 5,864 | 1.91 |
Meiji Yasuda Life Insurance Company | 5,372 | 1.75 |
The Bank of New York Mellon 140042 | 5,322 | 1.73 |
Kuraray Business Partner Stock Ownership Plan | 4,719 | 1.54 |
Competitive Landscape
Competitors by Segment
| Kuraray business | Principal competitors (named) | Kuraray relative position |
|---|---|---|
PVOH resin | — | Company-claimed global leader with four-region production; Chinese capacity pressures commodity grades |
Optical-use PVA film | Mitsubishi Chemical (ex-Nippon Gohsei), emerging Chinese producers | Dominant supplier for large-panel polariser base film (share not disclosed) |
Water-soluble film | Aicello (Mitsui Chemicals group), Sekisui Chemical, Chinese film makers | Leader via MonoSol (P&G relationship) |
PVB / ionoplast interlayers | Eastman (Saflex, Vanceva), Sekisui Chemical (S-LEC), Chang Chun, Chinese producers (e.g., Dongguan Qunan for ionoplast copies) | Strong in architectural (SentryGlas unique); under pressure in PVB, litigation with Sekisui |
EVOH | Mitsubishi Chemical (Soarnol), Chang Chun (EVASIN) | Market leader (EVAL) with capacity additions in US, Belgium, Singapore |
HSBC elastomers / isoprene chemicals | Kraton (DL Chemical), TSRC, Asahi Kasei, Zeon, Chinese/Asian producers | Sub-scale; loss-making; impaired |
High-temperature polyamide | Syensqo (Amodel), Envalior (Stanyl/ForTii), Celanese (Zytel HTN), Mitsui Chemicals (ARLEN), EMS-Chemie | Niche PA9T leader in connectors |
Methacrylates | Mitsubishi Chemical (Lucite), Röhm, Sumitomo Chemical, Trinseo/Altuglas, Chinese MMA | Retrenching |
Activated carbon | Norit (ex-Cabot), Jacobi (Osaka Gas Chemicals), Haycarb, Arq (ex-ADA Carbon Solutions), Ingevity, Chinese coal-based producers | Top-tier in US municipal water; reactivation network a differentiator |
Dental materials | Dentsply Sirona, Solventum (ex-3M Oral Care), Ivoclar, GC Corporation, Tokuyama Dental, Shofu | Premium niche in adhesives/zirconia |
Man-made leather | Toray (Ultrasuede), Teijin, Chinese PU leather makers | Niche (CLARINO) |
Hook & loop | Velcro, YKK | Niche (MAGIC TAPE) |
Peer Comparison FY2025
| Metric | Kuraray (FY Dec-2025) | Sekisui Chemical (FY Mar-2026) | Eastman Chemical (FY Dec-2025) | Mitsubishi Chemical Group (FY Mar-2026) |
|---|---|---|---|---|
Overlap | — | PVB interlayers, PVOH/water-soluble film | PVB interlayers (Saflex) | PVOH, EVOH, MMA, optical PVA film |
Revenue | ¥808.4bn | ¥1,309.3bn | US$8,752m | — |
Revenue growth | -2.2% | +0.9% | -6.7% | — |
Operating margin | 7.3% (OI) | 8.1% (OI ¥106.5bn) | 8.9% (EBIT US$776m); adj. 10.6% | Core OI ¥225bn (≈6% on forecast revenue) |
Net income | ¥7.5bn | ¥75.2bn | — | — |
R&D intensity | 3.5% | — | — | — |
P/B (third-party) | ≈0.72x | ≈1.3x | — | — |
EV/EBITDA (third-party) | ≈5.1x | ≈7.1x | — | — |
