Sharp (6753) Q4 2025 earnings summary

Executive summary

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

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

• Operating profit improved to ¥27.3B, reversing a ¥20.3B loss last year; profit attributable to owners was ¥36.1B versus a ¥149.9B loss.

• Major restructuring included halting panel production, asset and business transfers in Device Business, and termination of energy solutions in Europe.

• Announced a Medium-Term Management Plan focused on Brand Business expansion and financial strengthening.

Financial highlights

• Net sales: ¥2,160.1B, down 7.0% year-over-year.

• Operating profit: ¥27.3B (1.3% margin), up from a ¥20.3B loss last year.

• Ordinary profit: ¥17.6B (0.8% margin), up from a ¥7.0B loss.

• Bottom-line profit: ¥36.1B (1.7% margin), up from a ¥149.9B loss.

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

Outlook and guidance

• FY2025 forecast: Net sales ¥1,850.0B (-14.4%), operating profit ¥20.0B (-26.8%), ordinary profit ¥5.0B (-71.7%), bottom-line profit ¥10.0B (-72.3%).

• Margins expected to decline slightly; exchange rates assumed at USD/JPY 145.00 and EUR/JPY 160.00.

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