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Financial results presentation6753Sharp CorporationElectrical Equipment and Precision Instruments

FY2025 Financial Results

In FY2025, revenue declined, while operating income and ordinary income increased due to cost reductions and an improved model mix, among other factors. For FY2026, revenue, ordinary income and net income are expected to decline, while operating income is planned to increase slightly to ¥49.0 billion.

Worth reading
55In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
21.2
¥ billion (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFY2025 full year8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,892.8 billion-12.4%
Operating profit¥48.5 billion+77.6%
Ordinary income¥57.9 billion+228.3%
Net income¥47.4 billion+31.4%
Operating profit margin2.6%, up 1.3 percentage points year on year (from 1.3% to 2.6%)
Results for the three months of the current quarter
Net Sales
¥475.1 billion-5.4%
Operating profit
¥7.5 billion+9.1%
Ordinary income
¥10.2 billion-39.2%
Net income
¥-20 billion
Full-year earnings forecast
Net Sales
¥1,770 billion
Operating profit
¥49 billion
Ordinary income
¥39 billion
Net income
¥42 billion
Operating profit margin
2.8 %
Ordinary income margin
2.2 %
Net profit margin
2.4 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue, operating income and ordinary income exceeded the published forecasts, while net income fell short of the published forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Cost reductions and model mix¥24.2 billion
  • Expenses¥11 billion
  • Foreign Exchange Effects¥6.4 billion
  • Brand business¥6.9 billion
  • Display Devices¥-0.4 billion
  • Selling price¥-4.8 billion
  • Sales impact¥-24 billion
  • Other¥10.7 billion
  • Tariff impact¥-2.5 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Dollar-yen
¥156
EUR/JPY
¥183
New initiatives
  • Strengthen growth initiatives in FY2026
  • Discontinue the Other Businesses
  • Refinance the syndicated loan agreement
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio19.6 %
    Year on year against the same period last yearUp from 10.5% year on year
  • Net DER0.9 times
    Year on year against the same period last yearDown from 1.9x year on year
  • Inventory-to-monthly-sales ratio1.59 months
    Year on year against the same period last yearUp from 1.34 months year on year
Segment results
  • Smart Life
    Net Sales¥597.9 billion (YoY -7.1%)
    Operating profit¥28.4 billion (YoY +29.5%)
  • Smart Workplace
    Net Sales¥833.8 billion (YoY -0.3%)
    Operating profit¥57.5 billion (YoY -3.5%)
  • Brand business
    Net Sales¥1,431.8 billion (YoY -3.3%)
    Operating profit¥86 billion (YoY +5.4%)
  • Display Devices
    Net Sales¥423.5 billion (YoY -6.4%)
    Operating profit¥-18.2 billion
  • Other
    Net Sales¥47 billion (YoY -81.7%)
    Operating profit¥0.6 billion
Capital expenditures
¥30.7 billion
Annual Dividend
Annual dividend amount¥0 per share
Interim¥0 per share
End of period¥0 per share
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2025 full year
Net Sales¥1,892.8 billion (YoY -12.4%)
Operating profit¥48.5 billion (YoY +77.6%)
Ordinary income¥57.9 billion (YoY +228.3%)
Net income¥47.4 billion (YoY +31.4%)
Operating profit margin2.6%, up 1.3 percentage points year on year (from 1.3% to 2.6%)
Results for the three months of the current quarterNet Sales ¥475.1 billion (YoY -5.4%) / Operating profit ¥7.5 billion (YoY +9.1%) / Ordinary income ¥10.2 billion (YoY -39.2%) / Net income ¥-20 billion
Full-year earnings forecastNet Sales ¥1,770 billion / Operating profit ¥49 billion / Ordinary income ¥39 billion / Net income ¥42 billion / Operating profit margin 2.8 % / Ordinary income margin 2.2 % / Net profit margin 2.4 %
Self-assessment against the planRevenue, operating income and ordinary income exceeded the published forecasts, while net income fell short of the published forecast
Segment resultsSegment Smart Life / Net Sales ¥597.9 billion (YoY -7.1%) / Operating profit ¥28.4 billion (YoY +29.5%), Segment Smart Workplace / Net Sales ¥833.8 billion (YoY -0.3%) / Operating profit ¥57.5 billion (YoY -3.5%), Segment Brand business / Net Sales ¥1,431.8 billion (YoY -3.3%) / Operating profit ¥86 billion (YoY +5.4%), Segment Display Devices / Net Sales ¥423.5 billion (YoY -6.4%) / Operating profit ¥-18.2 billion, Segment Other / Net Sales ¥47 billion (YoY -81.7%) / Operating profit ¥0.6 billion
Breakdown of Factors Affecting the ChangeFactors Cost reductions and model mix / Amount ¥24.2 billion, Factors Expenses / Amount ¥11 billion, Factors Foreign Exchange Effects / Amount ¥6.4 billion, Factors Brand business / Amount ¥6.9 billion, Factors Display Devices / Amount ¥-0.4 billion, Factors Selling price / Amount ¥-4.8 billion, Factors Sales impact / Amount ¥-24 billion, Factors Other / Amount ¥10.7 billion, Factors Tariff impact / Amount ¥-2.5 billion
Key KPIsIndicator name Equity ratio / Value 19.6 % / Year on year against the same period last year Up from 10.5% year on year, Indicator name Net DER / Value 0.9 times / Year on year against the same period last year Down from 1.9x year on year, Indicator name Inventory-to-monthly-sales ratio / Value 1.59 months / Year on year against the same period last year Up from 1.34 months year on year
Assumptions Underlying the Business OutlookDollar-yen ¥156 / EUR/JPY ¥183
Annual DividendAnnual dividend amount ¥0 per share / Interim ¥0 per share / End of period ¥0 per share
Capital expenditures¥30.7 billion
New initiativesStrengthen growth initiatives in FY2026, Discontinue the Other Businesses, Refinance the syndicated loan agreement
Items this document does not state (14)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, intensified competition, sluggish demand and lower sales reduced revenue, while cost reductions, the model mix, the shift toward higher value-added products, lower expenses and foreign-exchange effects increased operating income. In Display Devices, the phase-out of products for smartphones reduced revenue.

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FY2025 Financial Results | Sharp Corporation (6753) timely disclosure | Komori