Olympus (7733) Q2 2025 earnings summary

Executive summary

• Fiscal 2023 and the first half of FY2025 saw record-high revenue and double-digit growth in core medical segments, with strong North American performance and yen depreciation as key drivers.

• Adjusted operating margin reached 20% in fiscal 2023 and 2Q FY2025, with operating profit rising 28% year-over-year.

• The company completed its portfolio transformation, divested the Orthopedic Business, and focused on medical technology, patient safety, innovation, and productivity.

• The Elevate remediation and quality transformation program is progressing, with most FDA commitments fulfilled.

• Profit attributable to owners declined due to the absence of prior year one-time gains from discontinued operations.

Financial highlights

• Consolidated revenue for fiscal 2023 was JPY 881.9 billion; 6M FY2025 revenue was JPY 474.0 billion, up 10% year-over-year.

• Adjusted operating profit rose 28% to JPY 85.1 billion for 6M FY2025; operating margin improved to 20% in 2Q.

• Gross profit reached JPY 596.8 billion in fiscal 2023, with gross margin rising to 68.1% for 6M FY2025.

• Equity ratio improved to 51.4% at September-end 2024.

• Year-end dividend of JPY 16 per share in fiscal 2023, increasing to JPY 20 per share in FY2025.

Outlook and guidance

• FY2025 revenue forecast is JPY 1,009.0 billion, with adjusted operating profit target of JPY 197.5 billion.

• EPS projected at JPY 273 for fiscal 2024, and basic EPS forecast at JPY 105.72 for FY2025.

• Dividend to increase to JPY 20 per share, with share buybacks of approximately JPY 100 billion planned.

• Both ESD and TSD divisions are expected to achieve record-high combined revenue.

• No change in FX assumptions for the full year; yen depreciation expected to remain a tailwind.