Japan Lifeline (7575) Q4 2025 earnings summary

Executive summary

• FY2025 net sales, operating profit and net income reached records, up 10.2%, 13.2% and 24.0%, respectively.

• Growth was driven by core EP/Ablation and newer therapeutic areas, partly offset by reimbursement price reductions.

• FY2025 results exceeded the original medium-term plan; FY2028 sales, EPS and ROIC targets were raised.

Financial highlights

• FY2025 net sales were ¥56,610 million, operating profit ¥12,326 million and net income ¥9,317 million.

• Gross margin was 60.4% (+10 bps), operating margin 21.8% (+60 bps), and EPS ¥131.43 (+33.1%).

• Operating profit rose ¥1.43bn YoY: sales and gross profit added ¥3.20bn, partly offset by a ¥1.76bn SG&A increase.

• Year-end cash and cash equivalents were ¥11,014 million, down ¥1,654 million YoY, mainly due to inventory build-up and treasury share repurchases.

Outlook and guidance

• FY2026 guidance: net sales ¥59,300 million (+4.8%), operating profit ¥12,900 million (+4.7%), net income ¥9,350 million (+0.3%) and EPS ¥133.30.

• FY2026 operating margin is expected to hold at 21.8%; gross margin is forecast at 59.7% (-70 bps), with new therapeutic areas projected to grow 30%.

• FY2028 targets were raised to sales ¥70bn, new therapeutic-area sales ¥11bn, operating margin 20%, EPS ¥145 and ROIC 13%.

• FY2026 dividend forecast is ¥54 per share, with a 40.5% payout ratio.