Shimadzu (7701) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 net sales reached ¥133.0B, up 6% YoY, marking a record high for the fifth consecutive period; 9M net sales rose 5.1% YoY to ¥384.3B, driven by Healthcare, Green, Material, and Industry domains.

• Operating income declined 8% YoY in Q3 to ¥16.8B and 7.3% YoY for 9M to ¥47.0B due to increased R&D and growth investments.

• Profit attributable to owners rose 19% YoY in Q3 to ¥14.8B, but fell 7.5% YoY for 9M to ¥36.1B.

• Organizational restructuring enhanced customer solutions and boosted domestic sales by 10.8%.

• Sales growth was led by Analytical & Measuring Instruments and Aircraft Equipment, while Medical Systems saw declines.

Financial highlights

• Q3 net sales: ¥133.0B (+6% YoY); operating income: ¥16.8B (-8% YoY); 9M net sales: ¥384.3B (+5% YoY); operating income: ¥47.0B (-7% YoY).

• Ordinary income: Q3 ¥20.8B (+22% YoY); 9M ¥49.2B (-7.1% YoY); profit attributable to owners: Q3 ¥14.8B (+19% YoY), 9M ¥36.1B (-7.5% YoY).

• R&D expenses rose 37% YoY in Q3 and 34% YoY for 9M; CAPEX up 40% YoY in Q3 and 4.6% YoY for 9M.

• FX impact: Q3 net sales +¥2.2B, operating income +¥1.5B; 9M net sales +¥13.1B, operating income +¥5.2B.

• Basic earnings per share for 9M was ¥122.94, down from ¥132.52 YoY.

Outlook and guidance

• Full-year FY2024 sales target maintained at ¥540.0B (+5% YoY); FY2025 forecast at ¥540.0B (+5.5% YoY); operating income forecast revised to ¥73.0B (flat YoY).

• Ordinary profit forecast for FY2025 is ¥75.0B (down 2.5% YoY); profit attributable to owners forecast at ¥58.0B (up 1.7% YoY).

• Segment outlook: AMI to expand in pharma, clinical, and green sectors; MED to offset Japan/China weakness with North America/Asia; IM and AE to see strong growth.

• Expect Q4 recovery in China and increased production to drive higher sales and income.

• Earnings forecast revised reflecting 9M progress and other factors.