Nikon (7731) Q4 2025 earnings summary

Executive summary

• FY2025 revenue was ¥715.2–715.3 billion, with operating profit at ¥2.4 billion and net profit at ¥6.1 billion, sharply down due to lower semiconductor sales and ¥27.2 billion in one-time costs.

• Imaging Products saw revenue growth but lower profit due to RED's operating loss and impairments; Precision Equipment and Components faced significant profit declines.

• Major acquisition: RED.com, LLC became a wholly owned subsidiary, strengthening the digital cinema camera strategy.

• Operating cash flow grew to ¥48.2–48.3 billion for the second consecutive year.

• Dividend maintained at ¥50 per share; ¥30 billion share buyback completed and shares canceled.

Financial highlights

• Operating profit margin fell to 0.3% from 5.5% year-over-year; EPS dropped to ¥17.86 from ¥94.03.

• Free cash flow was ¥21.7 billion, affected by acquisition and HQ relocation outlays; FCF was negative overall.

• ROE declined to 0.9% from 5.0% year-over-year; equity ratio at 57.4%.

• Gross margin improved to 43.6% from 43.2% year-over-year.

• Cash and cash equivalents decreased by ¥43.1 billion to ¥163.6 billion.

Outlook and guidance

• FY2026 revenue is projected at ¥710 billion, operating profit at ¥36 billion, and net profit at ¥30 billion.

• Profit growth expected from the absence of one-time costs, asset sales, and restructuring benefits.

• Dividend for FY2026 will remain at ¥50 per share; payout ratio target set at 50% or more.

• U.S. tariffs could negatively impact operating profit by ¥10 billion, not yet included in the forecast.

• Digital camera market expected to remain solid; semiconductor market recovery anticipated in the second half of FY2026.