Tamron (7740) Q4 2024 earnings summary

Executive summary

• Net sales reached ¥88.5B (up 24% YoY), operating income ¥19.2B (up 41% YoY), and net income ¥14.5B (up 34% YoY), surpassing medium-term targets.

• All business segments posted double-digit sales and profit growth, with strong performance in mirrorless cameras, automotive, and surveillance markets.

• Major shareholder returns included a ¥2B treasury share repurchase, 2-for-1 stock split, and annual dividend raised to ¥140 (up 1.6x YoY).

• Comprehensive income increased 40.8% YoY to ¥17,913M; strong cash flow from operating activities at ¥17,644M.

• Opened second Vietnam plant, entered Canon RF mount market, and completed significant ESG and governance reforms.

Financial highlights

• Net sales: ¥88,475M (+24% YoY); operating income: ¥19,201M (+41% YoY); net income: ¥14,526M (+34% YoY).

• Operating margin rose to 21.7% (+2.6pt YoY); net margin at 16.4%.

• Free cash flow: ¥10.9B; cash & equivalents at period end: ¥38.4B.

• R&D expenses: ¥7.1B (8.6% of sales); capital investment: ¥3.2B.

• Net income per share (basic) was ¥351.60 after a 2-for-1 stock split; net assets per share at ¥1,690.78.

Outlook and guidance

• FY2025 forecast: net sales ¥92B (+4%), operating income ¥20B (+4%), net income ¥14.8B (+2%).

• Net income per share for FY2025 forecasted at ¥89.77 after a planned 4-for-1 stock split.

• 2026 targets revised upward: net sales ¥95B, operating income >¥20B, ROE >16%.

• Photographic Products: sales to grow 4% to ¥67.4B, op. income up 9% to ¥19.8B.

• Surveillance & FA Lenses: sales up 2% to ¥12.6B, op. income down 11% to ¥1.4B due to higher R&D and FX headwinds.