Nihon Kohden Corporation (6849) Q4 2025 earnings summary

Executive summary

• FY2024 consolidated sales rose 1.5% year-over-year to ¥225.4 billion, with operating income up 5.7% to ¥20.7 billion, while ordinary income fell 20.4% to ¥20.4 billion due to foreign exchange losses and extraordinary items.

• Net income attributable to owners of parent declined 17.2% to ¥14.1 billion, impacted by foreign exchange losses and investment security devaluation.

• Domestic sales increased 2.0%, while overseas sales grew 0.7% (down 2% on a local currency basis), with North America showing double-digit growth in patient monitors and ventilators.

• Record high sales were supported by yen depreciation and improved product mix, despite overseas sales missing forecasts in some regions.

• The company advanced its BEACON 2030 Phase II plan, focusing on product competitiveness, North America growth, and profit structure reform.

Financial highlights

• Gross profit margin improved by 1.8 percentage points due to lower inventory devaluation, higher selling prices, and favorable product mix.

• Operating income margin rose to 9.2% from 8.8% year-over-year.

• Net assets per share increased to ¥1,101.11, but equity ratio declined to 69.5% from 77.6% due to increased liabilities and consolidation of Ad-Tech.

• Free cash flow turned negative at -¥9.85 billion, mainly due to increased investing activities and M&A.

• Cash and cash equivalents at year-end decreased by ¥6,816 million to ¥43,061 million.

Outlook and guidance

• FY2025 sales forecast at ¥240.0 billion (+6.5%), with operating income projected at ¥24.0 billion (+15.9%) and net income at ¥15.0 billion (+6.4%).

• Overseas sales expected to rise 12.5%, with North America leading at +13.4% and Asia & Other up 15.0%.

• Gross profit margin forecast at 52.5% (53.5% excluding tariff impact); operating margin target of 10.0%.

• Tariffs on U.S. imports to increase COGS by ¥2.5 billion, with mitigation measures underway.

• SG&A expenses will rise due to wage increases.