Taiheiyo Cement Corporation
Review of the 26 Mid-Term Management Plan and Future Policies
The management targets for fiscal 2026 include net sales exceeding 1 trillion yen, operating income over 100 billion yen, and ROE above 10%. Considering the impairment loss on the Philippines business and the slowdown in the U.S. market in fiscal 2025, measures will be implemented from fiscal 2026 onward to achieve an early realization of ROE at 10%.
Key Figures
- Net Sales: 906 billion yen (fiscal 2025 actual forecast)
- Operating Income: 70 billion yen (fiscal 2025 actual forecast)
- Capital Expenditures and Investments: 460 billion yen (26 Mid-Term Plan period)
AI要約
Progress of the 26 Mid-Term Management Plan
The fiscal 2026 management targets are net sales exceeding 1 trillion yen, operating income over 100 billion yen, and ROE above 10%. However, actual and forecast results for fiscal 2024 and 2025 have not reached these targets. In particular, ROE is projected to decline significantly to 2.6% in fiscal 2025. In the domestic business, we are addressing demand reduction and price corrections, while in the global businesses in the U.S. and the Philippines, we are responding to changing market conditions by promoting blended cement and implementing CCUS, contributing to carbon neutrality.
Future Policies and Measures
Although an impairment loss was recorded on the Philippines business and the U.S. market slowed in fiscal 2025, from fiscal 2026 onward, we aim for early achievement of 10% ROE by expanding earnings, improving capital efficiency, and fostering market expectations. Capital expenditures and investments totaling around 460 billion yen will continue growth investments in the U.S. market. Shareholder returns will be set with a minimum annual dividend of 100 yen per share, alongside flexible share buybacks. ESG initiatives will be enhanced through overcoming challenges in CCUS implementation and accumulating quality design technology for blended cement.
