Tokai Carbon raises 2026 outlook on stronger automotive, tire demand

Tokyo – Tokai Carbon has raised its full-year 2026 outlook after first-half results exceeded its previous forecasts, with the group expecting demand to recover in the automotive and tire industries over the next six months.

The Japanese carbon-materials producer now expects full-year net sales of Yen386 billion (€2 billion), up 4.3% from its previous forecast of Yen370.0 billion and 19.5% above 2025 sales of Yen323.0 billion.

Operating income is forecast at Yen35.0 billion, up 25% from the previous forecast of Yen28.0 billion and 35.4% above Yen25.85 billion in 2025, Tokai announced 5 Aug.

The group said the revised outlook reflects expectations that “demand is expected to recover in the automobile and tire industries, which are the main target markets for the Carbon Black segment”.

For the six months ended 30 June, Tokai’s Carbon Black unit increased sales 10.5% year-on-year to Yen83.5 billion, compared with Yen75.57 billion a year earlier.

Operating income fell 11% to Yen7.24 billion, due to increased depreciation associated with the start-up of its new carbon black plant in Thailand.

In terms of EBITDA, however, earnings at the Japanese carbon black producer increased to 9.7% year-on-year to Yen14.35 billion.

Carbon black sales increased despite lower sales volumes, Tokai Carbon explaining that the dip reflected a “production adjustment among tire manufacturers.”

The rise in sales by value was linked to the acquisitiontion of Bridgestone’s subsidiary in Thailand – consolidated in the second half of 2025 – as well as efforts to develop new customers and secure spot orders.