Canon Marketing Japan (8060): FY2025 Results Summary — Fifth Straight Year of Sales and Profit Growth, Record Profits

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

Canon Marketing Japan Inc. reported higher net sales and income for FY2025 (from January 1 to December 31, 2025), the fifth consecutive fiscal year of increases in both net sales and income. Net sales rose 4% year on year to 679.8 billion yen and operating income rose 10% to 58.2 billion yen, with operating income, ordinary income and net income attributable to owners of the parent all surpassing previous record highs. Alongside the results, announced on January 28, 2026, the company raised the forecast annual dividend per share to 170 yen (payout ratio 45%) and resolved on a two-for-one share split and an acquisition of treasury stock. For FY2026 the Group aims to achieve an increase in net sales and income for the sixth consecutive fiscal year.

Consolidated Results (Full-Year Actual)

Net sales increased 25.9 billion yen, or 4%, to 679.8 billion yen. Gross profit rose 6.8 billion yen (+3%) to 217.7 billion yen, while the gross profit margin edged down 0.2pt to 32.0%. Operating income increased 5.1 billion yen (+10%) to 58.2 billion yen and the operating margin improved 0.4pt to 8.6%. Ordinary income rose 5.4 billion yen (+10%) to 59.8 billion yen and net income attributable to owners of the parent rose 2.1 billion yen (+6%) to 41.5 billion yen.

In the operating income variance analysis, the increase from 53.1 billion yen to 58.2 billion yen comprised +8.3 billion yen from the increase in net sales, -1.5 billion yen from deterioration in the gross profit margin and -1.8 billion yen from an increase in SG&A expenses. The materials explain that the gross profit margin slightly declined as IT Products and System Sales accounted for a higher percentage of total sales, mainly in the Consumer segment, and that the SG&A increase reflected other direct selling expenses (+1.0 billion yen) and amortization of goodwill, etc. (+0.7 billion yen). Total SG&A expenses were 159.5 billion yen versus 157.7 billion yen a year earlier.

On the balance sheet, total assets stood at 564.4 billion yen as of December 31, 2025, up 39.8 billion yen from a year earlier, including cash and deposits of 160.1 billion yen (up 49.3 billion yen). Equity was 413.8 billion yen, up 30.1 billion yen, and the equity ratio was 73%, unchanged.

Item (Billions of yen)	FY2025	FY2024	Change	%
Net sales	679.8	653.9	+25.9	+4%
Gross profit	217.7	210.8	+6.8	+3%
Gross profit margin	32.0%	32.2%	-0.2pt	–
Operating income	58.2	53.1	+5.1	+10%
Operating margin	8.6%	8.1%	+0.4pt	–
Ordinary income	59.8	54.4	+5.4	+10%
Ordinary margin	8.8%	8.3%	+0.5pt	–
Net income attributable to owners of the parent	41.5	39.3	+2.1	+6%
Net income margin	6.1%	6.0%	+0.1pt	–

Segment Results

The Enterprise segment, which serves large, quasi-major and upper medium-sized enterprises, posted net sales of 265.8 billion yen (+15.8 billion yen, +6%) and operating income of 21.1 billion yen (+1.7 billion yen, +9%), with an operating margin of 7.9%. IT Solutions sales in the segment rose 16.0 billion yen (+8%) to 206.3 billion yen while Canon Products & Other were broadly flat at 59.4 billion yen. Canon IT Solutions Inc., the main consolidated company in the segment, recorded net sales of 147.2 billion yen (+6%) and operating income of 15.8 billion yen (+12%); orders received rose 3% for the full year while outstanding orders were down 11%, with outstanding orders excluding the Data Center business surpassing previous record highs.

The Area segment, which covers SMEs nationwide, generated net sales of 240.3 billion yen (+9.0 billion yen, +4%) and operating income of 22.3 billion yen (+4.0 billion yen, +22%), lifting the operating margin 1.4pt to 9.3%. Its IT Solutions sales grew 9.6 billion yen (+13%) to 83.3 billion yen. Canon System & Support Inc. posted net sales of 114.6 billion yen (+6%) and operating income of 10.3 billion yen (+50%).

The Consumers segment recorded net sales of 144.8 billion yen (+0.2 billion yen, +0%) and operating income of 13.0 billion yen (-0.7 billion yen, -5%), with the operating margin down 0.5pt to 9.0%. IT Solutions sales rose 4.1 billion yen (+11%) to 40.6 billion yen while Canon Products & Other fell 3.8 billion yen (-4%) to 104.2 billion yen. On a non-consolidated full-year basis, digital interchangeable lens camera units were down 7%, inkjet printer units down 8% and the IJP cartridge amount down 7% year on year.

The Professional segment lifted net sales 4.0 billion yen (+9%) to 48.8 billion yen and operating income 1.0 billion yen (+22%) to 5.5 billion yen, with the operating margin up 1.2pt to 11.4%. Within the segment, industrial equipment rose 2.1 billion yen (+11%) to 20.3 billion yen and the healthcare business rose 2.4 billion yen (+14%) to 19.2 billion yen, while production printing declined 0.5 billion yen (-5%) to 9.4 billion yen. Other, which is not a reportable segment and includes the shared service business and the elimination of intersegment transactions, was -19.8 billion yen in net sales and -3.8 billion yen in operating income.

Viewed by product and service category, Group IT Solutions sales rose 9% to 343.4 billion yen while Canon Products & Other slipped 1% to 336.4 billion yen. Within IT Solutions, IT Products and System Sales grew 14% to 151.3 billion yen, SI Services rose 4% to 104.4 billion yen and Maintenance and Operation Service/Outsourcing rose 9% to 87.7 billion yen.

Segment (Billions of yen)	Net sales FY2025	Net sales FY2024	Op. income FY2025	Op. income FY2024
Consumers	144.8	144.6	13.0	13.8
Enterprise	265.8	249.9	21.1	19.4
Area	240.3	231.3	22.3	18.3
Professional	48.8	44.8	5.5	4.6
Other	-19.8	-16.7	-3.8	-2.9
Total	679.8	653.9	58.2	53.1

FY2026 Forecast

For FY2026 (from January 1 to December 31, 2026) the company forecasts net sales of 685.0 billion yen (+5.2 billion yen, +1%), operating income of 60.0 billion yen (+1.8 billion yen, +3%) for an operating margin of 8.8%, ordinary income of 60.7 billion yen (+0.9 billion yen, +1%) and net income attributable to owners of the parent of 42.0 billion yen (+0.5 billion yen, +1%).

By segment, Enterprise is expected to lead with net sales of 275.4 billion yen (+4%) and operating income of 22.4 billion yen (+1.3 billion yen), following steady sales of IT Solutions. Area net sales are forecast to fall 2% to 235.5 billion yen as it is likely there will be a downturn in IT Solutions sales following the increase in PC sales in the previous fiscal year, with operating income unchanged at 22.3 billion yen. Consumers net sales are forecast at 142.6 billion yen (-2%) with operating income flat at 13.0 billion yen, reflecting a decrease in sales of IT Products and IJP cartridges despite an increase in digital interchangeable lens cameras. Professional net sales are forecast at 49.0 billion yen (+0%) with operating income down 0.5 billion yen (-10%) to 5.0 billion yen, reflecting lower sales of industrial equipment.

Item (Billions of yen)	FY2026 Forecast	FY2025 Actual	Change
Net sales	685.0	679.8	+5.2 (+1%)
Operating income	60.0	58.2	+1.8 (+3%)
Ordinary income	60.7	59.8	+0.9 (+1%)
Net income attributable to owners of the parent	42.0	41.5	+0.5 (+1%)
Enterprise net sales	275.4	265.8	+9.6 (+4%)
Area net sales	235.5	240.3	-4.8 (-2%)
Consumers net sales	142.6	144.8	-2.2 (-2%)
Professional net sales	49.0	48.8	+0.2 (+0%)

Shareholder Returns

The basic policy shown in the materials is a consolidated payout ratio of around 40% or above, having previously been a consolidated payout ratio of at least 30%. The forecast annual dividend per share has been increased to 170 yen for FY2025, a payout ratio of 45%, against 140 yen and a payout ratio of 44% for FY2024. For FY2026 the materials show a dividend per share of 180 yen and a payout ratio of 46% on a basis prior to giving effect to the share split; after giving effect to the share split, the FY2026 forecast annual dividend per share would be 90.00 yen.

At the meeting of the Board of Directors held on January 28, 2026, the company resolved to conduct a share split in the proportion of two shares for one share, with a record date of March 31, 2026 and an effective date of April 1, 2026. The Board also resolved on an acquisition of treasury stock of up to 30 billion yen in total value and up to 5,000,000 shares, equal to 4.66% of the total number of shares outstanding (excluding treasury stock), over an acquisition period from February 2, 2026 to October 30, 2026 by repurchase on the stock exchange.

Item (Yen)	FY2024	FY2025	FY2026 Forecast
Dividend per share	140	170	180
EPS	320	381	392
Payout ratio	44%	45%	46%

Topics and Group Changes

Starting from FY2025, Primagest, Inc., which was previously included in Other, was transferred to the Enterprise segment, and some of the system development and operation organizations in the Enterprise segment were transferred to Other; the segment information for FY2024 has been recalculated accordingly. In the Enterprise segment, TCS Inc. was merged into Canon IT Solutions Inc. in July 2025, and the results of Canon IT Solutions Inc. from July to December 2024 have been recalculated accordingly. As of December 31, 2025, Canon Inc. held 50.15% of Canon Marketing Japan Inc.

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.