EIZO (6737): FY2025 Results Summary — Net Income Up 76.5% on Securities Sales Despite Lower Operating Profit

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

EIZO Corporation (TSE Prime, 6737) announced its consolidated financial results for Fiscal Year 2025 (ended March 31, 2026) on May 12, 2026. Net sales rose to JPY 81.3 billion (up JPY 0.8 billion year on year) as Healthcare sales recovered in Europe, North America, and China, while operating profit declined to JPY 2.3 billion (down JPY 1.3 billion) amid a challenging European economic landscape. Net income increased to JPY 7.3 billion (up JPY 3.1 billion), lifted by a gain on the sale of investment securities. Note: in the presentation materials, “25F” means Fiscal Year 2025, that is the fiscal year ended March 31, 2026, and “26F” refers to the following fiscal year.

Consolidated Results (Full-Year Actual)

Net sales were JPY 81,308 million (YoY 101.0%). Healthcare (HC) sales recovered in Europe, North America, and China, resulting in higher net sales year on year, while Business & Plus (B&P) and Creative Work (CW) sales remained slow due to the economic landscape in Europe, a key region. Operating profit was JPY 2,365 million (YoY 63.8%): an inventory write-down of approximately JPY 400 million was recorded for excess inventory of legacy B&P products, and SG&A expenses increased due to wage increases, expenses related to the new Technology Hub, and the expansion of sales activities in India and the Middle East. Profit attributable to owners of parent was JPY 7,323 million (YoY 176.5%), reflecting extraordinary income of JPY 7,999 million from the sale of investment securities, including partial sales of strategic cross-shareholdings and shares held for investment. On the other hand, EIZO incurred JPY 441 million in expenses for restructuring and optimizing European operations and recognized an impairment loss on fixed assets of JPY 490 million at a company based in Europe with development and manufacturing capabilities.

Item (JPY Million)	24F	25F	YoY
Net Sales	80,493	81,308	101.0%
Gross Profit	26,199	25,901	98.9%
Gross Profit / Net Sales	32.5%	31.9%	(0.7pt)
Selling, General and Administrative Expenses	22,493	23,535	104.6%
Operating Profit	3,706	2,365	63.8%
Operating Profit / Net Sales	4.6%	2.9%	(1.7pt)
Ordinary Profit	4,555	3,772	82.8%
Profit Attributable to Owners of Parent	4,148	7,323	176.5%
Exchange Rate (Yearly Ave.): USD	JPY152.62	JPY150.67	(JPY1.95)
Exchange Rate (Yearly Ave.): EUR	JPY163.88	JPY174.64	JPY10.76

On the balance sheet, total assets grew to JPY 177,482 million (up JPY 19,722 million from a year earlier), with the rise in the market value of held shares increasing investment securities, deferred tax liabilities, and valuation difference on available-for-sale securities. Shareholders’ equity stood at JPY 136,930 million. Buildings and structures increased due to construction of the new Technology Hub (completed April 2025; total investment approx. JPY 5.2 billion).

Sales by Market

By market group, Healthcare accounted for 45.0% of net sales in 25F (42.4% in 24F). Healthcare sales rose to JPY 36.5 billion (YoY 107.2%): Diagnostics grew on a recovery in Europe and North America along with increased sales in India and the Middle East, and Endoscopy remained solid in Europe and China with a recovery in North America. B&P sales fell to JPY 14.3 billion (YoY 90.8%), as monitor sales in Europe — particularly Germany, EIZO’s largest market — continued to be affected by market conditions, while sales in Japan remained firm. Creative Work was JPY 5.3 billion (YoY 96.7%), with growth in Media & Entertainment in North America and Japan but only a gradual demand recovery in Europe. V&S was JPY 12.5 billion (YoY 99.6%): Air Traffic Control revenue fell due to the postponement of the realization of several projects despite strong sales in Europe and China, while Maritime sustained solid growth supported by new shipbuilding demand and Security & Surveillance sales increased on solid overseas demand. Amusement declined to JPY 5.4 billion (YoY 89.4%) as the overall industry shrinks due to a decline in the number of players and a reduction in the number of halls.

Market	25F Net Sales (JPY Million)	Share	YoY
B&P (Business & Plus)	14,325	17.6%	90.8%
Healthcare	36,578	45.0%	107.2%
Creative Work	5,342	6.6%	96.7%
V&S (Vertical & Specific)	12,552	15.4%	99.6%
Amusement	5,414	6.7%	89.4%
Other	7,094	8.7%	–
Total	81,308	100.0%	101.0%

26F Plan (Fiscal Year Ending March 31, 2027)

For 26F, EIZO plans net sales of JPY 85,000 million (104.5% of 25F), operating profit of JPY 3,300 million (139.5%), ordinary profit of JPY 4,600 million (121.9%), and profit attributable to owners of parent of JPY 6,500 million (88.8%), based on assumed exchange rates of JPY 160.00 to the USD and JPY 175.00 to the EUR. The company expects continued European stagnation, leading to stable B&P and CW sales, anticipates strong V&S sales growth with strong ATC order intakes in North America, and will strengthen overseas Healthcare business development as sales have been recovering. It will focus on strategic growth while controlling fixed costs through sales organization restructuring in Europe and manufacturing site reorganization, and expects to record approximately JPY 4,400 million as gain on sales of investment securities. By market, the 26F net sales targets are B&P JPY 14,900 million (104.0% of 25F), Healthcare JPY 37,300 million (102.0%), Creative Work JPY 5,800 million (108.6%), V&S JPY 15,200 million (121.1%), Amusement JPY 6,100 million (112.7%), and Other JPY 5,700 million (80.3%).

Item (JPY Million)	25F	26F Plan	25F vs. 26F Plan
Net Sales	81,308	85,000	104.5%
Gross Profit	25,901	27,700	106.9%
Selling, General and Administrative Expenses	23,535	24,400	103.7%
Operating Profit	2,365	3,300	139.5%
Ordinary Profit	3,772	4,600	121.9%
Profit Attributable to Owners of Parent	7,323	6,500	88.8%
Exchange Rate (Yearly Ave.): USD	JPY150.67	JPY160.00	JPY9.33
Exchange Rate (Yearly Ave.): EUR	JPY174.64	JPY175.00	JPY0.36

Shareholder Returns

EIZO sets the target level for shareholder returns (total return ratio) at 70% or more of consolidated net income for the fiscal year, with the annual dividend per share set at a minimum of JPY 105 (fiscal year ending March 2025). The annual dividend per share for 26F is expected to be JPY 115 (interim JPY 57.5, year-end JPY 57.5), an increase of JPY 5 compared to 25F (annual JPY 110), marking the 14th consecutive year of dividend increases. The company has also resolved a share buyback of up to 1,500,000 shares (3.79% of the total number of issued shares, excluding treasury shares) or up to JPY 4.0 billion, with an acquisition period from May 25, 2026 to April 30, 2027. In addition, EIZO plans to accelerate the reduction of strategic cross-shareholdings, with total divestment of approximately JPY 10 billion planned over the next three years (through the fiscal year ending March 2029). The shareholder return ratio is 109.5% for 25F (including a share buyback amount of JPY 3.5 billion) and 129.5% for the 26F plan (including a share buyback amount of JPY 4.0 billion).

Item	25F	26F Plan
Interim Dividend (JPY/Share)	55	57.5
Year-end Dividend (JPY/Share)	55	57.5
Annual Dividend (JPY/Share)	110	115
Dividend Payout Ratio	60.9%	68.6%
Shareholder Return Ratio	109.5%	129.5%

Medium-Term Plan / Topics

EIZO is implementing financial strategies to control net assets and enhance asset efficiency, including continued strengthening of shareholder returns, acceleration of the reduction of strategic cross-shareholdings, and the introduction of ROE-linked executive compensation in 26F. In the 9th Mid-Term Business Plan, to be announced in 2026, the company will present an integrated roadmap of business and financial strategies for improving capital profitability. Topics for the period include EIZO’s participation in “MEGURI2040,” a Nippon Foundation-led unmanned vessel project that achieved the world’s first successful commercial operation of a Level 4 equivalent autonomous container vessel; the launch of the CuratOR EX3245H, EIZO’s first medical monitor to feature a Mini LED backlight for endoscopy, microsurgery, and robot-assisted procedures; a partnership with Obayashi on remote construction machinery with 3D imaging at a Noto Peninsula disaster recovery site; and the official adoption of EIZO’s rugged monitor “Talon RGD2802” for the U.S. Navy’s next-generation shipboard ATC system.

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.