Yamaha (7951) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2025.3 increased 2.6% year-over-year to ¥350.7 billion, but net profit declined 31% to ¥14.3 billion due to weak musical instrument sales, especially in China, despite strong B2B audio equipment and digital piano recovery.

• Core operating profit rose 14.9% to ¥31.9 billion, driven by audio equipment gains, foreign exchange benefits, and SG&A cost reductions.

• Major restructuring in piano production includes consolidating manufacturing to Japan and China, with impairment losses and special retirement expenses for Indonesian facilities.

• Comprehensive income dropped sharply to ¥15.8 billion from ¥45.7 billion in the prior year period.

Financial highlights

• Nine-month revenue: ¥350.7 billion (+2.6% YoY); core operating profit: ¥31.9 billion (+14.9% YoY); net profit: ¥14.3 billion (-31% YoY), with gross profit at ¥138.1 billion.

• Q3 revenue was flat at ¥122.6 billion (+0.3% YoY); core operating profit fell 7.8% to ¥11.5 billion; net profit rose 56.3% to ¥9.0 billion.

• Cash and cash equivalents increased to ¥114.8 billion, while total assets decreased to ¥634.1 billion.

• Equity ratio attributable to owners improved to 77.9% from 76.6% at the previous fiscal year-end.

Outlook and guidance

• Full-year revenue forecast maintained at ¥460.0 billion; core operating profit revised down to ¥33.0 billion due to one-time restructuring costs.

• Net profit forecast cut to ¥13.5 billion, with basic EPS guidance at ¥27.66 (post-split).

• Dividend forecast for FY2025.3 is ¥13.00 per share (post-split), reflecting the stock split.

• Musical instrument sales in China are expected to bottom out, with digital piano recovery projected; audio equipment B2B sales remain robust.