Sharp (6753) Q3 2025 earnings summary

Executive summary

• Sales increased in all Brand Business segments year-over-year in Q3, with operating profit up across these segments despite yen depreciation.

• Device Business sales declined, but operating loss narrowed significantly due to structural reforms in the display business.

• Net sales for the nine months ended December 31, 2024, were ¥1,657,960 million, down 6.0% year-over-year.

• Operating profit rose to ¥20,397 million from a loss of ¥3,591 million in the prior year period.

• Ordinary and bottom-line profit declined due to foreign exchange losses and extraordinary losses from impairment and restructuring.

Financial highlights

• Q3 FY2024 net sales: ¥561.5B, down 7.4% year-over-year; operating profit: ¥19.9B, up 777.2% year-over-year.

• Cumulative Q1–Q3 FY2024 net sales: ¥1,657.9B, down 6.0% year-over-year; operating profit: ¥20.3B, up from ¥-3.5B.

• Ordinary profit fell to ¥831 million, down 87.4% from ¥6,580 million year-over-year.

• Extraordinary losses rose to ¥36,196 million, including ¥24,188 million in impairment losses and ¥11,167 million in business restructuring expenses.

• Cash and cash equivalents at period end increased to ¥235,246 million from ¥203,830 million year-over-year.

Outlook and guidance

• FY2024 forecast: net sales ¥2,130.0B, operating profit ¥20.0B, ordinary profit ¥1.0B, with bottom-line profit expected to turn positive for the first time since FY2021.

• Full-year net sales forecast revised to ¥2,130,000 million, down 8.3% from the previous year.

• Profit attributable to owners of parent not disclosed due to estimation difficulties.

• Dividend for the year ending March 31, 2025, remains undecided.