Sharp (6753) Q4 2025 earnings summary

Executive summary

• Returned to profitability in FY2024 after two years of losses, driven by structural reforms, asset sales, and Brand Business growth, despite yen depreciation and lower Device Business sales.

• Operating profit improved to ¥27.3B, reversing a prior year loss, with profit attributable to owners at ¥36.1B versus a ¥149.98B loss.

• Major restructuring included halting panel production, asset sales, and business transfers in Device Business.

• Asset Light Initiatives and a Medium-Term Management Plan focused on Brand Business growth and financial strengthening.

• Net sales declined 7.0% year-over-year to ¥2,160.1B, mainly due to Device Business weakness offsetting Brand Business gains.

Financial highlights

• FY2024 net sales: ¥2,160.1B, down 7.0% YoY; operating profit: ¥27.3B (1.3% margin); ordinary profit: ¥17.6B (0.8% margin); bottom-line profit: ¥36.1B (1.7% margin).

• All profit levels improved from FY2023, which saw a net loss.

• Cash and cash equivalents at year-end: ¥242.7B, up ¥23.6B.

• Quarterly net sales and profits showed sequential improvement, especially in the second half.

• Dividends per share remained at 0 yen.

Outlook and guidance

• FY2025 forecast: net sales ¥1,850.0B (-14.4% YoY), operating profit ¥20.0B (-26.8% YoY), bottom-line profit ¥10.0B (-72.3% YoY).

• Margins expected to decline across all profit levels.

• Focus on Brand Business expansion, business transformation, and financial foundation strengthening.

• Average exchange rate assumptions: USD/JPY 145.00, EUR/JPY 160.00.