Terumo (4543) Q2 2027 earnings summary

Executive summary

• H1 revenue reached a record ¥624.5B, up 16.7% reported and 8.0% excluding FX; adjusted operating profit rose 28.8% to a record ¥147.3B.

• Reported operating profit fell 29.9% to ¥70.8B and net profit fell 29.0% to ¥54.6B, mainly due to impairment and related costs following the CSL Plasma supply-agreement termination.

Financial highlights

• H1 gross profit rose 18.0% to ¥345.0B; gross margin increased to 55.2% from 54.7%.

• Adjusted operating margin increased to 23.6% from 21.4%; reported operating margin declined to 11.3% from 18.9%.

• Profit before tax was ¥69.5B; diluted EPS was ¥37.02 versus ¥52.12 a year earlier.

• H1 free cash flow was ¥122.6B, up ¥91.6B YoY.

Outlook and guidance

• Full-year revenue guidance is ¥1,219.5B (+7.7% YoY); adjusted operating profit is ¥271.5B (+23.8%), with a 22.3% margin.

• Operating profit guidance was reduced to ¥119.0B (-32.5% YoY) and parent-attributable profit to ¥87.5B (-35.6% YoY).

• Revised guidance reflects the Aortic recall, related asset-value risks and temporary Neuro supply constraints; assumptions include ¥155/$ and ¥180/€.

• Organ Technologies retained its 20% full-year profit margin target, with second-half growth expected from sales expansion.