Konica Minolta (4902) Q1 2026 earnings summary

Executive summary

• Revenue declined 8% year-over-year in Q1 FY2025 to ¥251.2 billion, mainly due to FOREX, business selection, and concentration initiatives.

• Operating profit increased to ¥10.1 billion from a prior-year loss, driven by cost reductions, structural reforms, and absence of one-time costs.

• Profit attributable to owners improved to ¥7.3 billion, aided by valuation gains, sale of Tempus AI shares, and discontinued operations.

• The Precision Medicine Business was classified as discontinued, contributing ¥2.9 billion profit in the quarter.

• Business contribution profit rose 411% year-over-year, reflecting improved gross profit ratio and lower SG&A expenses.

Financial highlights

• Revenue: ¥251.2 billion, down 8% year-over-year.

• Gross profit: ¥110.3 billion, down 7% year-over-year; gross profit ratio improved by 0.6pt to 43.9%.

• SG&A expenses: ¥101.1 billion, down 13% year-over-year.

• Business contribution profit: ¥9.2 billion, up 411% year-over-year.

• EPS: ¥14.74 (vs. -¥6.98 prior year); FCF: -¥18.8 billion.

Outlook and guidance

• FY2025 revenue forecast unchanged at ¥1,050.0 billion, operating profit at ¥48.0 billion, and profit attributable to owners at ¥24.0 billion.

• Dividend forecast at ¥10/share; basic EPS for the year projected at ¥48.56.

• U.S. reciprocal tariffs impact revised to ¥14.0 billion, with mitigation through price adjustments and cost reductions.

• Forecasts assume a yen/euro rate of 160 after Q2.

• Segment FCF revised downward due to tariff impact.