Nikon (7731) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, was ¥512.7B, down 3.1% year-over-year; operating profit fell 76.4% to ¥8.1B, and net profit attributable to owners dropped 74.9% to ¥6.3B, mainly due to weak semiconductor-related sales and one-time costs from HQ relocation and restructuring.

• Imaging Products saw strong sales and profit growth, while Precision Equipment, Components, and Customized Products faced declines due to weak semiconductor and EUV-related markets.

• The company acquired RED.com, LLC, expanding into professional digital cinema cameras.

Financial highlights

• Q1–Q3 operating profit was ¥8.1B, with negative free cash flow due to large investment outflows for acquisitions and headquarters relocation; operating margin dropped to 1.6% from 6.5% year-over-year.

• Full-year operating profit forecast revised down by ¥3B to ¥19B; revenue forecast lowered by ¥5B to ¥720B; profit attributable to owners maintained at ¥16B; annual dividend forecast at ¥55 per share.

• Basic EPS forecast for FY2025 is ¥46.63, down from ¥94.03 prior year.

• Cash and cash equivalents decreased by ¥41.7B to ¥164.9B; inventories rose by ¥47.0B.

• Exchange rate movements (weaker yen) had a positive impact on revenue and operating profit.

Outlook and guidance

• Semiconductor-related businesses expected to recover in the second half of next fiscal year, though order environment remains uncertain; Imaging Products forecast remains strong, with new product launches planned.

• Digital Manufacturing Business aims for SLM Solutions to achieve full-year EBITDA profit and operating profit next fiscal year.

• No further one-time costs for headquarters relocation or restructuring expected next year.

• Profit before tax and net profit guidance unchanged due to improved finance income/costs.