Shimadzu (7701) Q4 2025 earnings summary

Executive summary

• Net sales reached a record high of ¥539.0B, up 5% YoY, driven by growth in Japan, North America, and Asia, but operating profit declined 1% to ¥71.7B due to higher material costs and increased investments in R&D and human resources.

• Profit attributable to owners of parent decreased 5.7% to ¥53.8B; comprehensive income dropped 42.4% to ¥49.2B due to negative FX and valuation differences.

• Q4 saw record sales and profit, with sales up 6% and operating profit up 12% YoY.

• Strategic initiatives included new product launches, expansion in recurring business, and overseas R&D and manufacturing investments.

• AMI, IM, and AE segments posted record sales, with profit growth in IM and AE; MED saw flat sales and a profit decline.

Financial highlights

• Full-year net sales: ¥539.0B (+5% YoY); operating income: ¥71.7B (−1% YoY); net profit: ¥53.8B (−6% YoY); gross profit: ¥234.4B; ordinary profit: ¥72.0B (−6%).

• Operating margin: 13.3% (down 0.9 pts YoY); ROE: 10.9% (down 1.6 pts YoY); ROIC: 10.0% (down 1.0 pt YoY); EPS: ¥183.55 (down from ¥193.54).

• R&D expenses: ¥28.9B (+¥7.4B YoY); CAPEX: ¥22.9B; depreciation and amortization: ¥19.9B.

• Q4 net sales: ¥154.8B (+6% YoY); operating income: ¥24.7B (+12% YoY); operating margin: 15.9% (+0.9 pts YoY).

• Cash and cash equivalents at year-end: ¥137.2B (down ¥22.0B YoY); operating cash flow: ¥52.0B (+¥21.9B YoY).

Outlook and guidance

• FY2025 forecast: net sales ¥515.0B (−4.5% YoY), operating profit ¥58.0B (−19% YoY), net profit ¥45.0B (−16% YoY), EPS ¥155.75.

• Guidance assumes worst-case scenario with U.S. tariffs and yen appreciation; excluding these, underlying sales and profit would increase YoY.

• Annual dividend forecast maintained at ¥66 per share, including commemorative portion for 150th anniversary.

• Over 10 new product launches planned; focus on value-added pricing, cost control, and dynamic market expansion.

• Management aims to mitigate risks through local production and pricing strategies.