Ono Pharmaceutical (4528) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of 515.8 JPY bn (+5.9% YoY) and core operating profit of 137.1 JPY bn (+21.7% YoY) in FY2025, driven by strong overseas product growth and cost efficiency.

• Core profit attributable to owners reached 103.5 JPY bn (+14.5% YoY), the highest since core indicators were introduced.

• Domestic product sales declined 3.5% due to competition and generics, while overseas sales surged 56.5% and royalty income increased 10.9%.

• Major R&D progress included approvals and filings for Opdivo, Braftovi, Velexbru, QINLOCK, and ROMVIMZA, as well as new licensing agreements and pipeline advancements.

• FY2026 outlook projects lower revenue (455.0 JPY bn, -11.8% YoY) and profit due to the end of the Forxiga co-promotion agreement, with continued high R&D investment.

Financial highlights

• FY2025 revenue rose by 28.9 JPY bn YoY, with goods and products up 11.8 JPY bn (+3.6%) and royalty/others up 17.1 JPY bn (+10.9%).

• IFRS-based operating profit increased 54.4% YoY to 92.2 JPY bn; profit before tax rose 56.2% to 92.7 JPY bn.

• Basic earnings per share grew to 148.49 JPY from 106.55; return on equity improved to 8.5%.

• Total assets reached 1,106.5 JPY bn, equity attributable to owners was 850.7 JPY bn, and cash and cash equivalents at year-end were 237.0 JPY bn.

• Cash flows from operating activities were 136.8 JPY bn, with investing activities at -39.9 JPY bn and financing at -65.5 JPY bn.

Outlook and guidance

• FY2026 revenue forecast at 455.0 JPY bn (-11.8% YoY), core operating profit at 124.0 JPY bn (-9.6% YoY), and core profit for the year at 93.0 JPY bn (-10.1% YoY).

• The drop is mainly due to the end of the Forxiga co-promotion agreement, though royalty income is expected to rise.

• R&D investment to remain around 30% of net sales, focusing on global clinical trials and pipeline expansion.

• Dividend policy targets a 40% payout ratio, with an annual dividend of 80 JPY/share planned for FY2026.