Hamamatsu Photonics (6965) investor relations material

Executive summary

• Sales increased year-over-year by 4.9% to ¥155.4B, but operating profit declined 51.4% to ¥12.2B due to higher expenses and lower margins.

• Net profit dropped 52.9% year-over-year to ¥9.6B, and comprehensive income decreased 59.6%.

• The business environment remains uncertain due to global economic risks, including US tariffs and trade policy.

• Industrial and analytical segments performed steadily, while medical-bio faced a challenging environment and underperformed expectations.

• M&A activity contributed to sales growth but increased SG&A and R&D expenses.

Financial highlights

• Gross profit margin decreased from 50.8% to 48.3% year-over-year as cost of sales rose faster than net sales.

• Operating profit margin fell from 16.8% to 7.9% year-over-year.

• Ordinary profit declined 49.9% to JPY 13,983 million.

• Earnings per share for the nine months was JPY 31.96, down from JPY 65.90 year-over-year.

• Comprehensive income for the period was JPY 11,925 million, down from JPY 29,484 million year-over-year.

Outlook and guidance

• Full-year net sales forecast revised down to JPY 212,800 million, with operating profit expected at JPY 18,000 million.

• Profit attributable to owners of parent forecast at JPY 14,000 million.

• Earnings per share for the full year projected at JPY 46.86.

• Market uncertainty expected to persist due to tariffs and weak medical-bio demand.

• Forecasts were revised downward from previous guidance due to market and operational conditions.