Olympus (7733) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2025 rose 9% year-on-year to ¥725.2 billion, driven by strong North American growth, yen depreciation, and robust performance in Endoscopic and Therapeutic Solutions.

• Adjusted operating profit increased 16% to ¥128.2 billion, with margin at 17.7%.

• Full-year forecasts revised downward due to China market headwinds, with revenue now expected at ¥997.5 billion and profit at ¥105 billion.

• Business reorganization will realign divisions to GIS and SIS, effective April 2025.

• The Orthopedic Business was divested in July 2024 and is now classified as a discontinued operation.

Financial highlights

• Operating profit surged 186% year-on-year to ¥108.8 billion, reflecting lower losses, improved cost-to-sales ratio, and FX gains.

• Adjusted free cash flow for nine months was ¥63.4 billion; cash and cash equivalents at period end were ¥220.3 billion.

• Equity ratio improved to 52.2% at end-December 2024.

• Gross profit for nine months reached ¥490.9 billion (67.7% of revenue), up 10% year-on-year.

• Net cash provided by operating activities was ¥126.3 billion, while net cash used in investing and financing activities totaled ¥42.6 billion and ¥206.6 billion, respectively.

Outlook and guidance

• Full-year revenue forecast revised to ¥997.5 billion, with adjusted operating profit at ¥174.5 billion (margin 17.5%) and profit at ¥105 billion.

• Basic EPS forecast for the year is ¥91.76; year-end dividend planned at ¥20 per share.

• Guidance reflects China headwinds, exclusion of Orthopedic Business, and updated FX assumptions.

• Management targets a return to 20%+ operating margin in the medium term, despite short-term challenges.