Yamaha (7951) Q4 2025 earnings summary

Executive summary

• FY2025.3 revenue was nearly flat at ¥462.1 billion, as strong B2B audio sales and FX gains offset weak musical instrument sales, especially in China.

• Core operating profit rose 9.1% to ¥36.7 billion, supported by FX, B2B audio growth, and cost controls.

• Net income declined 55% to ¥13.4 billion due to ¥14.3 billion in structural reform expenses, including impairment losses on piano manufacturing.

• The new medium-term plan targets business foundation rebuilding, product evolution, and sustainable growth.

• The business faced challenges from weak post-pandemic demand, Chinese market stagnation, rising costs, and FX volatility.

Financial highlights

• FY2025.3 revenue: ¥462.1 billion (down 0.2% YoY); core operating profit: ¥36.7 billion (7.9% margin); net profit: ¥13.4 billion (-55% YoY).

• FX provided a ¥8 billion positive impact; cost increases and lower sales volume were negative factors.

• Inventory at March 2025: ¥150.5 billion, down ¥13.7 billion YoY.

• Non-current assets and total equity decreased due to shareholding sales and market value declines.

• Cash and cash equivalents at year-end: ¥99.8 billion.

Outlook and guidance

• FY2026.3 forecast: revenue ¥455.0 billion, core operating profit ¥40.0 billion (8.8% margin), net profit ¥28.5 billion (+113.5% YoY).

• Revenue growth expected from global recovery in musical instruments except China; audio equipment revenue to decline due to B2B lull and China auto slowdown.

• U.S. tariffs pose significant risk; estimated -¥14 billion impact not included in guidance.

• ROE forecast to improve to 6.3% in FY2026.3, still below cost of equity.

• Dividend per share forecast: ¥26 post-split (¥78 pre-split basis); 3-for-1 stock split effective October 2024.