Hamamatsu Photonics (6965) Q4 2025 earnings summary

Executive summary

• FY25 sales rose 4.0% year-over-year to ¥212.0 billion, driven by strong demand in the semiconductor and analytical instrument sectors, while medical-bio instrument sales declined; however, operating profit dropped 49.7% to ¥16.1 billion and net profit fell 43.5% to ¥14.2 billion due to increased expenses from M&A and business expansion.

• Growth in net sales was offset by significant declines in profitability across all major profit lines.

• FY26 sales are projected to grow 4.7% to ¥222.0 billion, with operating profit expected to rise 6.4% to ¥17.2 billion as sales growth offsets higher SG&A and R&D expenses.

• The mid-term plan targets sales of ¥262.0 billion by FY28, focusing on semiconductor, quantum, and security markets.

Financial highlights

• FY25 gross profit margin declined to 47.8% from 50.9% in FY24; operating profit margin decreased to 7.6% from 15.7%.

• EBITDA fell 22.8% year-over-year to ¥38.5 billion.

• Net profit decreased 43.5% year-over-year to ¥14.2 billion; earnings per share fell to ¥47.32 from ¥81.19.

• FY26 forecasts: gross profit of ¥106.2 billion (47.8% margin), EBITDA of ¥39.9 billion, net profit of ¥14.3 billion.

• Return on equity dropped to 4.4% from 7.7% year-over-year.

Outlook and guidance

• FY26 expects continued sales growth in the semiconductor industry and a recovery in medical-bio instruments; guidance projects net sales of ¥222.0 billion (+4.7%), operating profit of ¥17.2 billion (+6.4%), and net profit of ¥14.3 billion (+0.7%).

• Mid-term plan (FY28) aims for a 3-year CAGR of 7.3% in sales, with operating profit margin improving to 12.8%.

• Depreciation expenses are expected to peak in FY27.

• Annual dividend forecast maintained at ¥38 per share.