Terumo (4543) Q3 2025 earnings summary

Executive summary

• Achieved record-high revenue and profit for Q3 and the cumulative period, with 13.1% year-over-year revenue growth to ¥772.2 billion, driven by strong global demand, especially in the US, and favorable foreign exchange effects.

• Profit growth outpaced sales growth due to effective pricing, profitability improvements, and operational measures.

• Adjusted operating profit increased 33.0% to ¥159.3 billion, with net profit attributable to owners up 23.4% to ¥98.6 billion.

• One-time restructuring and impairment costs were recorded, but underlying business momentum remains strong.

Financial highlights

• Cumulative Q3 revenue reached ¥772.2 billion, with operating income at ¥133.5 billion and adjusted operating income at ¥159.3 billion.

• Gross profit margin improved to 54.7% for Q3 YTD (from 52.0%), with Q3 margin at 55.1%.

• Free cash flow for Q3 YTD was ¥93.9 billion, up ¥55.8 billion year-over-year.

• Basic earnings per share was ¥66.53, up from ¥53.66, reflecting a two-for-one share split effective April 1, 2024.

• Cash and cash equivalents at period end: ¥212.6 billion.

Outlook and guidance

• Full-year and FY2025 guidance remain unchanged, with revenue guidance at ¥1,010 billion and adjusted operating profit at ¥200 billion.

• Management will focus on high value-added products, cost improvements, and SG&A efficiency amid industry and FX uncertainties.

• Restructuring and extraordinary costs are expected to be one-off and not to recur in the next fiscal year.

• FY24 guidance for CAPEX at ¥93 billion and R&D expenses at ¥71.5 billion.

• Management continues to monitor macro risks such as raw material prices and U.S. tariff policies.