Terumo (4543) Q2 2025 earnings summary

Executive summary

• Achieved record-high revenue and profits for the first half, with net sales up 15% year-over-year to ¥508.7 billion, driven by strong global demand and favorable foreign exchange rates.

• Profit growth outpaced sales growth, supported by cost control, pricing measures, and favorable FX.

• All major business segments and regions posted double-digit growth, with especially strong performance in the US and Europe.

• Free cash flow reached a record high, aided by profit increase, working capital management, and reduced capital investment.

• Upward revision of full-year forecast, expecting record sales and profits.

Financial highlights

• Revenue for FY24 Q2 YTD rose 15% year-over-year to ¥508.7 billion; gross profit up 21% to ¥277.0 billion.

• Operating profit increased 32% to ¥87.7 billion; adjusted operating profit up 38% to ¥104.0 billion.

• Profit for the year up 26% to ¥63.2 billion; free cash flow surged 255% to ¥62.1 billion.

• Gross margin improved to 54.5% from 51.4% year-over-year.

• Cash and cash equivalents at period-end were ¥194.9 billion.

Outlook and guidance

• Full-year adjusted operating income forecast revised upward from ¥185 billion to ¥200 billion, reflecting strong first-half performance and favorable FX.

• FY2025 revenue forecast is ¥1,010.0 billion (+9.6% YoY), adjusted operating profit ¥200.0 billion (+27.6%), and EPS ¥84.10.

• Dividend guidance for FY2025 is ¥26.00 per share, reflecting a two-for-one share split.

• ROIC and ROE expected to improve to 7.9% and 9.2%, respectively.

• Continued monitoring of macroeconomic risks, including raw material and transportation costs.