Terumo (4543) Q4 2025 earnings summary

Executive summary

• Sales revenue for fiscal 2024 surpassed JPY 1 trillion for the first time, growing 12–12.4% year-over-year, driven by global demand, especially in the US and Americas, and a weaker yen.

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

• Net income and free cash flow hit record highs, with free cash flow nearly doubling to JPY 128.3 billion.

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

• Strategic focus remains on innovation, global expansion, and strengthening the CDMO business, including a major European acquisition.

Financial highlights

• Sales revenue: JPY 1,036.2 billion, up 12–12.4% year-over-year.

• Operating profit: JPY 157.7 billion; adjusted operating profit: JPY 203.4 billion (+29.8% year-over-year), both record highs.

• Adjusted operating profit margin improved to 19.6% (+2.6 percentage points year-over-year).

• Free cash flow increased by JPY 63.5 billion year-over-year, reaching JPY 128.3 billion.

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

Outlook and guidance

• FY2025/2026 revenue guidance: JPY 1,050.0 billion (+1–7% year-over-year, +7% FX neutral); adjusted operating profit forecast: JPY 214.0 billion (+5.2%).

• Operating profit expected to grow 24–32% due to business expansion and absence of prior one-time expenses.

• Dividend per share to increase from JPY 26 to JPY 31–30, with a payout ratio of 31–33%.

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

• ROIC and ROE projected to rise to 8.8% and 10.1%, respectively.