Terumo (4543) Q2 2026 earnings summary

Executive summary

• Achieved record first-half revenue of JPY 534.9 billion, driven by strong North American and global demand, effective pricing, and favorable business environment.

• Adjusted operating profit and profit for the period reached record highs, outpacing revenue growth due to global pricing, cost control, and operational efficiency.

• Full-year guidance for revenue and adjusted operating profit was revised upward, reflecting robust fundamentals, yen depreciation, and favorable FX assumptions.

• Operating profit guidance was revised downward due to acquisition-related, impairment, and one-time portfolio review expenses.

• Major acquisitions, including OrganOx and the Leverkusen plant, are expected to drive future growth and expand business segments.

Financial highlights

• First-half revenue rose 5.2% year-over-year to JPY 534.9 billion, with 8% local currency growth in North America and all-time highs in revenue and profits.

• Adjusted operating profit reached JPY 114.4 billion, up 10% year-over-year; operating profit was JPY 101.0 billion, up 15.1% year-over-year.

• Gross margin improved to 54.7% for the period.

• Free cash flow for FY25 Q2 YTD was JPY 31.0 billion, up 20% year-over-year.

• Profit growth was driven by pricing, cost management, and strong segment performance, despite negative FX and tariff impacts.

Outlook and guidance

• Full-year revenue guidance revised upward to JPY 1,108.0 billion (+6.9% YoY), and adjusted operating profit to JPY 221.5 billion (+8.9% YoY).

• Operating profit guidance revised downward to JPY 181.5 billion due to M&A and one-time costs.

• Full-year profit for the year now expected at JPY 136.0 billion, a 16% increase year-over-year.

• OrganOx acquisition to contribute JPY 9 billion revenue and JPY 1.3 billion adjusted operating profit over five months.

• Temporary costs from strategic initiatives, accretion, and portfolio optimization included in revised guidance.