Asahi Intecc (7747) Q4 2025 earnings summary

Executive summary

• Revenue rose 11.6% year-over-year to 120,025 million yen, driven by strong Medical Division performance and global market expansion, surpassing medium-term targets a year early.

• Operating income surged 35.9% year-over-year to 30,079 million yen, with gross profit up 17.6% to 81,235 million yen, despite higher SG&A and R&D expenses.

• Net income declined 19.4% year-over-year to 12,737 million yen due to significant impairment losses and valuation losses on securities.

• Medical Division outperformed, especially in cardiovascular and neurovascular segments, while OEM business declined in the U.S. and China.

• Device Division saw a slight revenue increase in medical components but a decrease in industrial components.

Financial highlights

• Gross margin improved to 67.7% from 64.2% year-over-year, reflecting productivity gains.

• Operating income excluding goodwill amortization rose 31.1% year-over-year to 31,689 million yen.

• EPS dropped 19.4% year-over-year to 46.92 yen.

• Revenue and profit exceeded the revised plan, with net income 12.6% above expectations.

• Cash and cash equivalents at period-end increased 49.2% to 53,200 million yen.

Outlook and guidance

• Fiscal 2026 revenue is forecast at 130,870 million yen (+9.0%), with operating income projected at 32,642 million yen (+8.5%).

• Net income is expected to rebound sharply to 23,811 million yen (+86.9% year-over-year) due to lower impairment losses.

• Medical Division to drive growth in all overseas markets; Device Division to benefit from subsidiary consolidation.

• Gross margin may decrease to 66.3% due to exchange rates and U.S. tariffs, but would rise if excluding tariff impact.

• Higher dividend planned for FY2026.