Terumo (4543) Q4 2025 earnings summary

Executive summary

• Sales revenue for fiscal 2024 surpassed JPY 1 trillion for the first time, rising 12.4% year-over-year to JPY 1,036.2 billion, driven by strong global demand, especially in the US and Americas.

• Operating profit reached a record high for the fourth consecutive year, despite one-time expenses of JPY 24.2 billion related to portfolio optimization, restructuring, and impairment charges.

• Net income and free cash flow also hit record highs, with profit attributable to owners of the parent at JPY 116.98 billion and free cash flow at JPY 128.3 billion.

• Strategic focus remains on innovation, plasma business expansion, global CDMO growth, and transitioning from devices to comprehensive healthcare solutions, including a major acquisition in Europe.

• All business segments and regions posted double-digit growth, even excluding foreign exchange effects.

Financial highlights

• Revenue: JPY 1,036.2 billion, up 12.4% year-over-year; operating profit: JPY 157.7 billion (+13%); adjusted operating profit: JPY 203.4 billion (+29.8%).

• Adjusted operating profit margin improved to 19.6% from 17.0% year-over-year.

• Free cash flow increased to JPY 128.3 billion, nearly doubling year-over-year.

• Gross margin improved to 54.1% from 52.0% year-over-year.

• Cash flows from operating activities rose to JPY 210.8 billion, up JPY 64.5 billion.

Outlook and guidance

• Fiscal 2025/2026 revenue expected at JPY 1,050.0 billion (+1.3%), with adjusted operating profit forecast at JPY 214.0 billion (+5.2%) and profit attributable to owners at JPY 143.0 billion (+22.2%).

• Operating profit projected to rise 24% (+32% FX neutral) to JPY 194.0 billion, with margin improvement targeted at 18.5%.

• Dividend per share to increase from JPY 26 to JPY 31, with a payout ratio of 31–33%.

• U.S./China reciprocal tariffs could impact profit by up to JPY 17 billion, not yet factored into guidance.

• Continued investment in production capacity and productivity improvements in Europe and the US.