Roland (7944) Q4 2025 earnings summary

Executive summary

• FY12/2025 net sales rose 1.5% YoY to JPY 100.95bn, with strong US demand and China recovery, but softer demand in Europe due to competition and bankruptcies.

• Operating profit declined 5.4% YoY to JPY 9.41bn, while net profit dropped 63.7% to JPY 2.17bn due to impairment losses at a subsidiary.

• U.S. tariffs impacted results, but price optimization offset much of the effect.

• FY12/2026 is forecasted to deliver growth in both sales and profit, supported by new product launches and resumed SG&A investments.

• Year-end dividend for FY2025 is JPY 85 per share, with FY2026 dividends expected to remain unchanged at JPY 170 per share.

Financial highlights

• FY12/2025 sales: JPY 100.95bn (+1.5% YoY); operating profit: JPY 9.41bn (-5.4% YoY); net profit: JPY 2.17bn (-63.7% YoY) due to impairment and DTA reversal.

• EBITDA for FY12/2025: JPY 12.4bn (-3.5% YoY); gross profit margin: 42.2% (down from 42.8%).

• Basic EPS decreased to JPY 81.69 from JPY 216.49 YoY.

• Equity ratio declined to 49% at FY12/2025 end.

• Cash and cash equivalents at year-end were JPY 15.88bn, up JPY 1.40bn YoY.

Outlook and guidance

• FY12/2026 sales forecast: JPY 106.4bn (+5.4% YoY); operating profit: JPY 10.0bn (+6.2% YoY); net profit: JPY 7.2bn (+232.1% YoY, rebounding from prior year impairment).

• Annual dividend for FY2026 is projected at JPY 170 per share, unchanged from FY2025.

• Growth expected across all product categories and regions, with emerging markets projected at +11% and developed markets at +5%.

• Both H1 and H2 of FY12/2026 expected to see sales and operating profit growth.