Japan Lifeline (7575) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales, operating profit and net profit reached records of ¥56.61B, ¥12.326B and ¥9.317B, up 10.2%, 13.2% and 24.0% YoY, respectively.

• Growth was led by core EP/Ablation products and expansion in new therapeutic areas, despite reimbursement price reductions.

• FY 2028 medium-term targets were raised, with structural heart, PFA development and international expansion among the growth priorities.

Financial highlights

• Gross margin was 60.4% (+10 bps YoY), operating margin 21.8% (+60 bps), and basic EPS ¥131.43, up from ¥98.73.

• Core products added ¥2.24B to operating-profit growth; neurovascular and GI added ¥645M, while selling-price declines reduced profit by ¥748M.

• Net profit benefited from ¥351M of deferred tax assets; SG&A included a one-time ¥188M doubtful-account allowance.

• Year-end cash and cash equivalents were ¥11.014B, down ¥1.654B, mainly due to inventory build-up and treasury share repurchases.

Outlook and guidance

• FY 2026 guidance: net sales ¥59.3B (+4.8%), operating profit ¥12.9B (+4.7%), net profit ¥9.35B (+0.3%) and EPS ¥133.30 (+1.4%).

• New therapeutic areas are forecast to grow 30% in aggregate; AF procedures are expected to increase by more than 10% YoY.

• Gross margin is forecast at 59.7% (-70 bps), with operating margin at 21.8%.

• FY 2028 targets: net sales ¥70B, new therapeutic-area sales ¥11B, EPS ¥145 and ROIC 13%; operating-margin target remains 20%.