TenCate Advanced Composites
Executive Summary
TenCate Advanced Composites is an organization engaged in the production of composite materials for aerospace, automotive, defense, and industrial sectors. The company has now merged with Toray Group. Therefore, the financial data of Toray Group has been used for the analysis.
By 2025, there has been a positive change in revenue, and it has stabilized. The report summarizes strong market presence, innovation, and long-term growth. Overall, the company is recommended as Hold / Expand with Caution.
2. Company Overview
TenCate Advanced Composites initially began as a US composite manufacturer, established in 1972 by Scott Unger. Afterward, it joined Royal TenCate and broadened its business in advanced materials across the world. This company dealt with manufacturing high-end composite materials applied in aerospace, defense, automotive, and industrial industries. It operates in the US, the UK, and the Netherlands. In 2018, it merged with Toray Industries. Thus, any financial information after 2018 cannot be made public.
Industry Overview
TenCate Advanced Composites produces high-performance materials that are used in aerospace, defense, automotive, and industrial sectors. The industry specializes in lightweight and robust materials. This industry enhances strength, efficiency, and performance.
After forming Toray Advanced Composites in 2018, the industry entered into carbon fibre and composite materials market.
Year | Revenue (JPY Million) |
2023 | ¥2,489,330 Million |
2024 | ¥2,464,596 Million |
2025 | ¥2,563,280 Million |
Financial Performance Analysis
Key Financial YoY Analysis
Year | 2024 | 2025 |
Revenue / Net Sales (JPY Million) | 2,464,596 | 2,563,280 |
Gross Profit (JPY Million) | 443,523 | 505,895 |
EBITDA | 207,844 | 265,289 |
Revenue Trend Over 3–5 Years
Interpretation
- Revenue increased in 2025 due to strong demand for advanced materials and composite applications.
- Gross profit improved because of strong performance and demand.
- EBITDA increased in 2025, and as a result, profitability and efficiency have improved
Key Financial Ratios
Ratio Category | Formula | FY 2025 | Interpretation |
Current Ratio | Current Assets / Current Liabilities | 1.7 | The company has good short-term liquidity and can cover current obligations comfortably. |
Gross Margin % | Gross Profit / Revenue × 100 | 19.74% | The company retains around 19.74% of revenue after covering production costs. |
Net Profit Margin % | Net Profit / Revenue × 100 | 3.10% | The company earns a moderate profit from total sales revenue. |
Return on Equity (ROE) | Net Profit / Shareholders’ Equity × 100 | 4.65% | The company generated a modest return for shareholders |
Debt-to-Equity Ratio | Total Debt / Shareholders’ Equity | 0.49 | The company uses moderate debt financing and maintains balanced leverage. |
Interest Coverage Ratio | EBIT / Interest Expense | 4.93 | The company can comfortably pay interest obligations from operating earnings. |
Asset Turnover | Revenue / Total Assets | 0.79 | The company generates moderate revenue from its asset base. |
6. SWOT Analysis
Strengths | Weaknesses |
Strong revenue base with revenue above 2.5 billion | Net profit margin is relatively low |
Healthy liquidity position with Current Ratio of 1.70 | Operating income declined compared to previous year |
Moderate debt level and stable financial structure | High operating and administrative expenses |
Opportunities | Threats |
Growing demand for advanced composite and industrial materials | Rising raw material and energy costs |
Expansion into global and high-tech markets | Intense competition in textile and material industry |
Increasing focus on sustainable and innovative products | Economic slowdown and currency fluctuations |
Conclusion and Recommendation
The company showed stable performance in 2025. Revenue and efficiency improved. Liquidity is stable. The company strengthens its market presence through innovation and advanced composite solutions. Overall, the company is recommended as Hold / Expand with Caution due to its stable growth and long-term business potential.
References and Sources
- Toray Group Annual Report 2025
- Toray Industries Official Website
- Yahoo Finance
- Wikipedia - TenCate Advanced Composites / Toray Group
- Company Financial Statements and Investor Reports