Nikon (7731) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose to ¥163.9 billion, up 3.6% year-over-year, driven by strong Imaging Products, FPD lithography sales, and a weaker yen.

• Operating profit was ¥2.95 billion, down 10.3% year-over-year, as gains in Imaging were offset by higher costs and slow starts in other segments.

• Profit attributable to owners increased to ¥2.76 billion, up 7.0% year-over-year.

• RED.com, LLC was acquired and made a wholly-owned subsidiary, expanding the professional cinema camera business.

Financial highlights

• Gross profit margin improved to 45.7% from 42.0% year-over-year.

• Free cash flow was negative ¥8.0 billion, mainly due to the acquisition of RED.

• Imaging Products revenue rose to ¥83.7 billion, with operating profit at ¥17.8 billion and margin above 20%.

• Cash and cash equivalents decreased by ¥11.0 billion to ¥195.7 billion as of June 30, 2024.

• Q1 operating margin was 1.8%, down from 2.1% year-over-year.

Outlook and guidance

• Full-year revenue forecast raised to ¥750 billion, with operating profit and net profit guidance unchanged at ¥35 billion and ¥30 billion, respectively.

• Imaging Products guidance raised for both revenue and operating profit; Healthcare and Components guidance lowered for 1H due to market delays.

• First-half forecasts revised down for most segments due to postponed sales, but second half expected to recover.

• Exchange rate assumptions: US$ ¥148–145, Euro ¥158–155 for FY2025.

• Annual dividend forecast maintained at ¥55 per share.