PHC (6523) Q4 2025 earnings summary

Executive summary

• FY2024 revenue reached JPY 361.6 billion, up 2.2% year-over-year, driven by electronic prescription demand, M&A, Pathology growth, and FX gains, despite BGM market decline and weak capital investment in diagnostics and life sciences.

• Operating profit surged by JPY 21 billion year-on-year to JPY 22.6 billion, reflecting higher revenues, cost reductions, absence of prior-year impairment and restructuring costs, and M&A contributions.

• Profit attributable to owners was JPY 10.5 billion, reversing a prior-year loss, supported by FX gains and lower interest expenses.

• The company exceeded its initial plans and announced a medium-term management plan through 2027, targeting growth and operational strengthening.

• Annual dividend maintained at JPY 42/share.

Financial highlights

• FY2024 revenue: JPY 361.6 billion (+2.2% YoY); operating profit: JPY 22.6 billion (+1,341.9% YoY); profit attributable to owners: JPY 10.5 billion (+JPY 23.4 billion YoY).

• Adjusted EBITDA: JPY 50.1 billion (+0.8% YoY); ROIC improved to 3.8% from 0.3% last year; ROE reached 7.5%.

• Operating cash flow was JPY 41.9 billion; capital investment was JPY 11.6 billion.

• Net debt/EBITDA multiple decreased to 4.3x after debt repayment.

• Basic earnings per share was JPY 83.13.

Outlook and guidance

• FY2025 revenue forecast is JPY 363.1 billion (+0.4% YoY); operating profit expected to decrease to JPY 17.4 billion (-22.9% YoY) due to restructuring costs, inflation, and tariff impacts.

• Profit attributable to owners projected at JPY 7.4 billion (-29.4% YoY); EPS forecasted at JPY 59.

• Adjusted EBITDA is forecast at JPY 45.2 billion, a 9.8% decrease.

• Dividend forecast maintained at JPY 42 per share.

• Tariff impact estimated at JPY 6 billion on operating profit, with mitigation measures expected to absorb most of it.