Ricoh Company (7752) Q2 2026 earnings summary

Executive summary

• Revenues and earnings increased, driven by Office Services and cost controls, despite U.S. tariff impacts and sluggish overseas economies.

• Corporate Value Improvement Project delivered ¥18.2 billion in gains, with business divestitures and discontinuations supporting focus.

• Tariff policies had a direct negative impact of ¥4.4 billion on earnings.

• Sales for the half year ended September 30, 2025 increased 1.7% year-over-year to ¥1,222.4 billion, with domestic sales up 12.5% and overseas sales down 4.6%.

• Operating profit surged 420.6% to ¥35.4 billion, driven by cost reductions and improved profitability in key segments.

Financial highlights

• Sales rose 1.7% year-over-year to ¥1,222.4 billion for H1 FY2025.

• Operating profit surged 420.6% year-over-year to ¥35.4 billion, with margin up to 2.9%.

• Profit attributable to owners increased 165.2% to ¥24.5 billion; EPS up to ¥43.18.

• Free cash flow turned negative at -¥6.3 billion due to higher inventories and project expenses.

• Gross profit decreased 0.8% year-over-year to ¥419.7 billion, with a gross margin of 34.3%.

Outlook and guidance

• FY2025 full-year forecasts unchanged: sales ¥2,560.0 billion, operating profit ¥80.0 billion, EPS ¥98.39.

• Operating margin expected to rise to 3.1%; ROE to 5.4%.

• Maintaining 50% total return ratio, with planned dividend of ¥40 per share.

• The company expects to absorb increased U.S. tariff-related expenses through positive results and pricing strategies.

• Assumed exchange rates for the full year are ¥143.04/USD and ¥161.57/EUR.