Shionogi & Co (4507) Q4 2026 earnings summary

Executive summary

• Revenue and all profit categories reached record highs for the fourth consecutive year, driven by growth in key businesses, successful M&A activities, and strong royalty income.

• Major developments included the completion of the ViiV Healthcare equity acquisition, the transfer and integration of the Edaravone (Radicava) business, and the establishment of a new U.S. company for RADICAVA.

• Major acquisitions included Torii Pharmaceutical and the JT pharmaceutical business, strengthening the domestic and global portfolio.

• Integration of new businesses and product launches contributed to growth, despite increased SG&A and R&D expenses.

• Strong performance in the HIV franchise, expansion in overseas markets, and robust domestic sales of new products contributed to growth.

Financial highlights

• FY2025 revenue was ¥499.7B, up 14% year-over-year; operating profit was ¥166.7B, up 6.5%; EBITDA reached ¥187.7B, up 4.7% year-over-year.

• Profit before tax rose 19% to ¥238.9B; profit attributable to owners of parent increased 20.4% to ¥205.2B.

• Basic EPS was ¥241.11 (up from ¥200.36); comprehensive income was ¥379.7B, up 121.7% year-over-year.

• Cash and cash equivalents at year-end were ¥711.4B, up ¥336.6B year-over-year.

• Revenue growth was driven by royalty income, prescription drugs, and overseas subsidiaries/export.

Outlook and guidance

• FY2026 revenue is forecast at ¥700B, a 40% increase year-over-year, with operating profit expected at ¥220B.

• Profit attributable to owners of parent is projected to reach ¥210B, marking a third consecutive record year.

• Growth will be supported by M&A, new product launches, and continued expansion in the HIV and rare disease businesses.

• Anticipates increased SG&A and R&D costs, but revenue growth to offset expenses.