Olympus (7733) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached ¥997.3 billion, up 8% year-over-year, driven by strong North America performance and yen depreciation, despite supply chain disruptions and a CEO transition.

• Adjusted operating profit was ¥188.5 billion (+25% YoY), with an adjusted margin of 18.9%, both exceeding forecasts.

• Profit attributable to owners was ¥117.9 billion; EPS was ¥103, down from the prior year due to the absence of extraordinary gains.

• Bob White appointed as new CEO effective June 1, 2025, bringing extensive medtech leadership experience.

• Major organizational restructuring and segment changes are set for FY2026, including the divestiture of the Orthopedic Business.

Financial highlights

• FY2025 consolidated revenue rose 8% year-over-year to ¥997.3 billion, a record high, with double-digit growth in North America.

• Adjusted operating profit increased 25% year-over-year to ¥188.5 billion; operating profit surged 216% to ¥162.5 billion.

• Gross profit was ¥683.7 billion (68.6% of revenue), up 11% YoY; gross margin improved due to lower recall and correction costs.

• Free cash flow was ¥125 billion; adjusted free cash flow (excluding extraordinary factors) was ¥9.4 billion; cash and cash equivalents at year-end were ¥252.5 billion.

• Year-end dividend for FY2025 set at ¥20 per share, up ¥2 YoY.

Outlook and guidance

• FY2026 revenue expected to grow 4% after FX adjustment to ¥999.0 billion; adjusted operating profit forecasted at ¥175.0 billion with a margin of 17.5%.

• Profit attributable to owners projected at ¥105.0 billion; EPS at ¥94.44.

• Annual dividend for FY2026 planned at ¥30 per share, up ¥10; share buyback of ¥50 billion announced.

• U.S. tariff impacts (estimated gross ¥20 billion) are not included in forecasts due to uncertainty; mitigation measures are being developed.

• New segment structure (Gastrointestinal and Surgical & Interventional Solutions) will be implemented.