HOYA (7741) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2024 rose 13.4% year-over-year to ¥220.8 billion, with profit before tax up 31.3% to ¥65.2 billion, driven by strong Information Technology business performance.

• Net income attributable to owners increased 30.6% to ¥50.5 billion; basic EPS was ¥145.35, up from ¥110.26 year-over-year.

• Operating profit increased significantly despite a decline in the Life Care business, supported by robust IT segment growth.

• For the nine months ended December 31, 2024, revenue grew 14.8% to ¥649.3 billion and profit before tax rose 16.9% to ¥192.3 billion.

• Pretax profit rose sharply, aided by FX gains and higher operating profit, despite a ¥4.8bn impairment loss.

Financial highlights

• Revenue: ¥220.8bn, up 13% year-over-year (constant currency +11%).

• Operating profit: ¥66.1bn, up 17% year-over-year (constant currency +13%).

• Pretax profit: ¥65.2bn, up 31% year-over-year (constant currency +28%).

• Cash and cash equivalents at period end increased to ¥579.3 billion from ¥450.5 billion year-over-year.

• Free cash flow for Q3 was ¥46.6 billion, up from ¥35.1 billion year-over-year.

Outlook and guidance

• Full-year FY2024 revenue is projected at ¥869.2 billion (+14.0%), with profit before tax at ¥256.1 billion (+8.3%) and EPS at ¥570.12 (+10.6%).

• Record-high sales and profit expected for the full year, with FY24 revenue guidance at ¥869.2bn (+14%) and net profit at ¥198.3bn (+9%).

• Q4 profits expected to decrease year-over-year due to absence of FX gains and seasonal decline in IT business revenue.

• Q4 revenue is expected to be flat sequentially, with a slight decrease in profit before tax and EPS compared to Q3.

• FX assumptions: USD/JPY 154, EUR/JPY 167.