Ushio (6925) Q4 2025 earnings summary

Executive summary

• FY2024 net sales decreased 1.0% year-over-year to ¥177.6 billion, with operating profit down 32.0% to ¥8.8 billion and profit attributable to owners falling 37.0% to ¥6.7 billion, but results surpassed internal forecasts due to improved efficiency and strategic business selection.

• Comprehensive income turned negative at ¥(2,764) million, compared to ¥28,246 million in the prior year.

• Profitability was impacted by investment deferrals in the semiconductor market, valuation losses from a business portfolio revamp, and inventory write-downs.

• Inventory reduction and enhanced balance sheet management led to improved free cash flow.

• The global economy remained uncertain, with mixed demand trends and ongoing geopolitical risks.

Financial highlights

• FY2024 net sales: ¥177.6 billion, down 1.0% year-over-year; operating profit: ¥8.8 billion, down 32.0%; profit attributable to owners: ¥6.7 billion, down 37.0%.

• Operating margin fell to 5.0% from 7.2% year-over-year; EPS decreased to ¥70.27 from ¥97.22; ROE dropped to 3.1% from 4.5%.

• Gross profit declined to ¥62,215 million from ¥64,916 million; ordinary profit dropped 22.6% to ¥12,451 million.

• Extraordinary income included a ¥9.5 billion gain on sale of investment securities; extraordinary losses included ¥5.7 billion in restructuring expenses.

• Net assets decreased to ¥200,509 million, with an equity ratio of 67.4%.

Outlook and guidance

• FY2025 net sales forecast: ¥170.0 billion (down 4.3% YoY); operating profit: ¥10.0 billion (up 13.3% YoY); profit attributable to owners: ¥7.0 billion (up 3.0% YoY).

• Operating margin expected to rise to 5.9%; EPS forecast at ¥79.45; ROE at 3.5%.

• Dividend floor set at ¥70 per share through FY2026; planned share buybacks of ¥20–30 billion for FY2025–FY2026.

• Industrial Processes and Visual Imaging revenues are expected to decline, while earnings in Visual Imaging and Life Sciences are projected to improve.

• Exchange rate assumptions are ¥140/USD and ¥155/EUR.