Seiko Epson (6724): FY2025 Results Summary — Revenue Up on Printing Solutions, Business Profit Down on U.S. Tariffs; Fiery Impairment Cuts Net Profit, FY2026 Dividend Raised to ¥80

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Seiko Epson Corporation (6724) announced its Fourth Quarter Financial Results for Fiscal Year 2025 (ending March 2026) on May 1, 2026. For the full year, revenue rose 3.7% year on year to ¥1,413.3 billion, driven mainly by Printing Solutions, while business profit declined 6.5% to ¥83.8 billion due to lower revenue in Visual Communications and the effects of U.S. tariffs. Profit for the year attributable to owners of the parent company fell 67.0% to ¥18.2 billion, reflecting an impairment loss of ¥25.9 billion on a portion of the goodwill from the Fiery acquisition. Both revenue and business profit exceeded the February 3 outlook of ¥1,390.0 billion and ¥75.0 billion. For FY2026, the first year of Phase 1 of the new mid-term business plan, the company forecasts revenue of ¥1,450.0 billion and business profit of ¥90.0 billion, and plans to raise the annual dividend by ¥6 to ¥80 per share.

Consolidated Results (Full-Year Actual)

Revenue increased mainly in printing solutions. Business profit declined due to a decline in revenue in visual communications and the effects of U.S. tariffs, although the yen’s depreciation beyond assumptions provided a positive exchange effect of ¥9.9 billion on revenue and ¥11.4 billion on business profit. Profits at each level below profit from operating activities were reduced by impairment losses recorded related to Fiery, etc. The average exchange rates for the year were ¥150.69 to the U.S. dollar and ¥174.74 to the euro (FY2024: ¥152.47 and ¥163.64).

Item (Billion JPY)	FY2024 Actual	FY2025 2/3 Outlook	FY2025 Actual	YoY	vs 2/3 Outlook
Revenue	1,362.9	1,390.0	1,413.3	+50.3 (+3.7%)	+23.3 (+1.7%)
Business profit	89.6	75.0	83.8	-5.8 (-6.5%)	+8.8 (+11.7%)
Profit from operating activities	75.1	67.0	49.6	-25.5 (-34.0%)	-17.4 (-26.0%)
Profit before tax	78.4	68.0	50.0	-28.4 (-36.2%)	-18.0 (-26.4%)
Profit for the year attributable to owners of the parent company	55.2	41.0	18.2	-37.0 (-67.0%)	-22.8 (-55.6%)
EPS (JPY)	168.75	127.95	56.81	–	–

In the company’s cause analysis of the change in business profit from FY2024 (¥89.6 billion) to FY2025 (¥83.8 billion), unit sales contributed +¥9.8 billion (Fiery’s business profit is entirely accounted for as a change in unit sales), price changes -¥1.9 billion, parts and transportation costs +¥1.5 billion, other changes -¥4.6 billion (including the effects of inventory changes), the exchange rate impact +¥11.4 billion, and the U.S. tariff impact -¥22.0 billion. Compared with the previous outlook, sales of products such as office and home inkjet printers and printheads exceeded expectations, yen depreciation exceeded assumptions, and the U.S. tariff impact decreased due to changes in tariff rates, while precious metals, electronic parts and other raw materials costs rose sharply and reduced inventory negatively impacted profit.

Fiery Impairment Loss

An impairment loss of ¥25.9 billion was recognized on a portion of the goodwill recorded with the Fiery acquisition. Following the imposition of U.S. tariffs in April 2025, enterprises became more cautious about investment, resulting in a weaker than expected market for Fiery’s commercial and industrial printing businesses. In the cut-sheet segment, which is primarily focused on commercial printing and accounts for the majority of revenue, performance fell below the assumptions made at the time of acquisition in line with a slowdown in the overall market, resulting in an approximately 10% year-on-year decline in revenue in FY2025. Given the changes in the operating environment and future uncertainty, the business plan and future earnings outlook were revised on the assumption that sales would not rapidly recover, and the goodwill impairment loss was recognized after the recoverable amount fell below the carrying value. The company states that Fiery’s presence and earnings structure in existing businesses remain intact, that progress is being made in creating synergies, and that the Fiery business is still expected to serve as a mid-term growth driver.

Segment Results

Printing Solutions revenue rose 5.0% to ¥1,029.5 billion, with segment profit of ¥120.6 billion, down 3.4%. Within this, Office & Home Printing revenue increased 2.2% to ¥695.2 billion (business profit ¥59.5 billion, down 6.9%), and Commercial & Industrial Printing revenue increased 11.6% to ¥334.4 billion (business profit ¥61.1 billion, up 0.3%). Visual Communications revenue fell 11.0% to ¥181.4 billion and segment profit fell 57.8% to ¥12.3 billion as projector demand remained stagnant and U.S. tariffs and inventory reductions weighed on profit. Manufacturing-related & Wearables revenue grew 13.6% to ¥206.1 billion, with segment profit of ¥10.8 billion compared with a loss of ¥3.2 billion in FY2024, helped by higher sales of crystal devices and cost reductions. Every segment’s revenue exceeded the February 3 outlook.

Segment (Billion JPY)	Metric	FY2024 Actual	FY2025 2/3 Outlook	FY2025 Actual	YoY
Printing Solutions	Revenue	980.1	1,014.0	1,029.5	+5.0%
Printing Solutions	Segment profit	124.8	112.0	120.6	-3.4%
Office & Home Printing	Revenue	680.5	686.0	695.2	+2.2%
Office & Home Printing	Business profit	63.9	55.0	59.5	-6.9%
Commercial & Industrial Printing	Revenue	299.8	328.0	334.4	+11.6%
Commercial & Industrial Printing	Business profit	60.9	57.0	61.1	+0.3%
Visual Communications	Revenue	203.8	179.0	181.4	-11.0%
Visual Communications	Segment profit	29.0	13.0	12.3	-57.8%
Manufacturing-related & Wearables	Revenue	181.5	200.0	206.1	+13.6%
Manufacturing-related & Wearables	Segment profit	-3.2	11.0	10.8	–
Consolidated Total	Revenue	1,362.9	1,390.0	1,413.3	+3.7%
Consolidated Total	Business profit	89.6	75.0	83.8	-6.5%

FY2026 Forecast

For FY2026, Epson forecasts revenue of ¥1,450.0 billion (up ¥36.7 billion, or 2.6%) and business profit of ¥90.0 billion (up ¥6.2 billion, or 7.4%), with revenue growth forecast for each segment and profit growth forecast primarily for Precision Innovation. Profit from operating activities is forecast at ¥86.0 billion, profit before tax at ¥84.0 billion and profit for the year attributable to owners of the parent company at ¥59.0 billion (up 224.1%), as no extraordinary expenses are expected. EPS is forecast at ¥184.13. The exchange rate assumptions are ¥151.00 to the U.S. dollar and ¥175.00 to the euro. In the cause analysis of the change in business profit, unit sales are expected to add ¥20.0 billion and price changes ¥8.0 billion, while parts and transportation costs (including rising transportation costs and prices for precious metals, memory and oil-derived products) are expected to reduce profit by ¥25.0 billion; other changes contribute +¥4.0 billion and the exchange rate impact -¥1.0 billion. Changes in U.S. tariff rates are expected to have a positive effect, while refunds of reciprocal tariffs ruled unconstitutional have not been factored in because the timing is uncertain.

Item (Billion JPY)	FY2025 Actual	FY2026 Outlook	YoY
Revenue	1,413.3	1,450.0	+36.7 (+2.6%)
Business profit	83.8	90.0	+6.2 (+7.4%)
Profit from operating activities	49.6	86.0	+36.4 (+73.5%)
Profit before tax	50.0	84.0	+34.0 (+67.9%)
Profit for the year attributable to owners of the parent company	18.2	59.0	+40.8 (+224.1%)
EPS (JPY)	56.81	184.13	–
Exchange rate USD (JPY)	150.69	151.00	–
Exchange rate EUR (JPY)	174.74	175.00	–

From FY2026, Epson is changing its business segments to Precision Innovation (inkjet solutions, microdevices, Epson Atmix), Industrial & Robotics (commercial and industrial printing, robotics), Office & Home Printing, and Visual & Lifestyle (visual products, wearable products, PCs). The FY2026 outlook and FY2025 actual figures by segment below are on the new segment basis. In Precision Innovation, the company plans to invest in production capacity to meet growing demand for inkjet solutions, microdevices (data center, AI and automotive markets) and metal powders at Epson Atmix. In Office & Home Printing, it aims to sell 17.2 million office and home inkjet printers while increasing efficiency in production and sales. In Visual & Lifestyle, it aims for annual projector sales of 1.3 million units and expects PC demand to decline from last year, when demand was driven by the end of OS support.

Segment (new basis, Billion JPY)	Metric	FY2025 Actual	FY2026 Outlook	YoY
Precision Innovation	Revenue	167.5	182.0	+8.6%
Precision Innovation	Segment profit	44.0	50.0	+13.6%
Industrial & Robotics	Revenue	297.8	310.0	+4.1%
Industrial & Robotics	Segment profit	20.2	24.0	+18.8%
Office & Home Printing	Revenue	692.5	698.0	+0.8%
Office & Home Printing	Segment profit	61.2	56.0	-8.5%
Visual & Lifestyle	Revenue	250.9	252.0	+0.4%
Visual & Lifestyle	Segment profit	16.9	20.0	+18.2%
Consolidated Total	Revenue	1,413.3	1,450.0	+2.6%
Consolidated Total	Business profit	83.8	90.0	+7.4%

Shareholder Returns

Epson’s basic policy is to actively pursue shareholder returns after making investments based on its growth strategy: provide stable dividends with a minimum DOE (total dividends / equity attributable to owners of the parent company) of 3%, and agilely repurchase shares depending on the share price, capital situation and other factors. The annual dividend for FY2025 is ¥74 per share (outlook), unchanged from FY2024, with a consolidated dividend payout ratio of 40%. For FY2026, the company plans to increase the annual dividend by ¥6 to ¥80 per share (interim ¥40, year-end ¥40), equivalent to a DOE of 3%.

Mid-Term Business Plan and Management Indices

Under its long-term corporate vision ENGINEERED FUTURE 2035, Epson has set a mid-term business plan framework in three phases: Phase 1 (2026-2028) “Transform from the ground up to achieve growth,” Phase 2 (2029-2031) “Transition to a growth model,” and Phase 3 (2032-2035) “Create a business structure to generate continuous growth.” In Phase 1, the company will transform its earnings base and strengthen competitiveness while steadily allocating resources toward future growth, with a FY2028 ROIC target of 8%. The FY2028 mid-term targets shown in the materials are revenue of ¥1,500.0 billion, ROS of 8.0%, ROE of 10.0% and ROIC of 8.0%, compared with FY2026 outlook figures of ROS 6.2%, ROA 5.9%, ROE 7.0% and ROIC 5.9%. For FY2026, the company plans research and development costs of ¥46.0 billion, capital expenditure of ¥85.0 billion, depreciation and amortization of ¥78.0 billion, cash flows from operating activities of ¥120.0 billion and free cash flows of ¥50.0 billion (FY2025 actual: ¥46.8 billion, ¥74.5 billion, ¥77.5 billion, ¥112.4 billion and ¥46.8 billion, respectively).

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.