HORIBA (6856): FY2025 Results Summary — Record Sales and Operating Profit on Semiconductor Strength; Dividend Raised to 450 Yen

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Note: HORIBA’s fiscal year ends on December 31; the company labels the year ended December 31, 2025 as “2025” and the year ending December 31, 2026 as “2026,” and the text and tables below keep the company’s own labels. For 2025, HORIBA, Ltd. reported consolidated sales of 333.0 billion yen (up 15.7 billion yen from 2024), operating profit of 53.0 billion yen (up 4.7 billion yen), ordinary profit of 54.2 billion yen (up 4.0 billion yen) and net income attributable to HORIBA, Ltd.’s shareholders of 37.0 billion yen (up 3.4 billion yen); sales, operating profit and ordinary profit were marked as record highs. Sales were 1.9 billion yen below the forecast as of Nov. 14 (335.0 billion yen), while operating profit exceeded the forecast of 52.0 billion yen by 1.0 billion yen. For 2026 the company forecasts sales of 345.0 billion yen, operating profit of 56.0 billion yen, ordinary profit of 56.5 billion yen and net income of 40.5 billion yen, all marked as record highs. The 2025 dividend per share was 450 yen (interim 80 yen / year-end 370 yen), and the 2026 forecast is 490 yen (interim 150 yen / year-end 340 yen).

Consolidated Results (Full-Year Actual)

Consolidated sales for 2025 were 333.0 billion yen, compared with 317.3 billion yen in 2024 (up 15.7 billion yen) and against the forecast of 335.0 billion yen as of Nov. 14 (1.9 billion yen short). Operating profit was 53.0 billion yen (48.3 billion yen in 2024; up 4.7 billion yen, and 1.0 billion yen above the 52.0 billion yen forecast), and the operating profit margin was 15.9% (15.2%; up 0.7 points, and 0.4 points above the 15.5% forecast). Ordinary profit was 54.2 billion yen (50.1 billion yen; up 4.0 billion yen, and 2.2 billion yen above the 52.0 billion yen forecast). Net income attributable to HORIBA, Ltd.’s shareholders was 37.0 billion yen (33.5 billion yen; up 3.4 billion yen, and 1.0 billion yen above the 36.0 billion yen forecast). The average exchange rates were 149.61 yen per U.S. dollar (151.69 yen in 2024; forecast 145.00 yen) and 169.19 yen per euro (164.05 yen; forecast 165.00 yen). In the operating profit analysis versus 2024 (Jan.–Dec.), operating profit rose from 48.34 billion yen to 53.04 billion yen (+4.70): gross profit increased by +11.09 billion yen (sales increase +16.76, COGS increase -5.66), the exchange impact was -1.71 billion yen (-1.59 on gross profit and -0.12 on expenses), and expenses increased by -4.68 billion yen (R&D expenses -1.59, other expenses -3.09). The exchange rate impact for 2025 (vs 2024) is shown as a sales decrease of -1.04 billion yen, an increase in cost of goods sales of -0.54, an impact to gross profit of -1.59, an increase in expenses of -0.12 and an impact to operating profit of -1.71 billion yen.

Item (Billions of Yen)	2025 Results	2024 Results	2025 Forecasts (as of Nov. 14)	vs 2024	vs Previous Forecasts
Sales	333.0	317.3	335.0	+15.7	– 1.9
Operating profit	53.0	48.3	52.0	+4.7	+1.0
O.P.%	15.9%	15.2%	15.5%	＋0.7p	+0.4p
Ordinary profit	54.2	50.1	52.0	+4.0	+2.2
Net income attributable to HORIBA, Ltd.’s Shareholders	37.0	33.5	36.0	+3.4	+1.0
USD/JPY	149.61	151.69	145.00	-2.08	+4.61
EUR/JPY	169.19	164.05	165.00	+5.14	+4.19

On the balance sheet, fixed assets increased due to the investment in the new R&D center building and the new factory in Fukuchiyama; as a result, total assets were ¥518.2bn, an increase of ¥36.6bn compared with the previous year end, and the equity ratio was 67.1%. Operating cash flow was a cash inflow of ¥54.3bn due to operating profit, investing cash flow was a cash outflow of ¥24.9bn due to capital investments, giving free cash flow of + ¥29.4bn, and financing cash flow was a cash outflow of ¥11.9bn due to payment of dividends. At the end of 2025, cash was 162.3 billion yen, interest-bearing debt totaled 66.4 billion yen (bonds 30.0, long-term 24.2, short-term 12.1), the current ratio was 299% and the capital ratio was 67%. The company’s recent issuer ratings are R&I “A” (Aug. 2025) and JCR “A+” (Aug. 2025). Capex in 2025 was 27.4 billion yen (19.3 billion yen in 2024; +8.0, and +7.4 versus the previous forecast of 20.0), depreciation and amortization was 13.8 billion yen (13.0; +0.7) and R&D expenses were 24.6 billion yen (22.9; +1.7), or 7.4% of net sales (7.2%). For 2026 the company forecasts capex of 20.0 billion yen (-7.4), depreciation and amortization of 15.5 billion yen (+1.6) and R&D expenses of 27.5 billion yen (+2.8), or 8.0% of net sales (+0.6p).

Results by Field

Beginning in 2025, HORIBA changed its disclosure segments to three fields; the company notes that, due to the change, past highest ratings by field are not shown. Energy & Environment sales were 134.4 billion yen (127.4 billion yen in 2024; +6.9, and -2.5 versus the 137.0 billion yen forecast as of Nov. 14) with operating profit of 9.4 billion yen (4.2; +5.1, and +1.4 versus the 8.0 billion yen forecast). Bio & Healthcare sales were 42.1 billion yen (40.1; +2.0, and -1.8 versus the 44.0 billion yen forecast) with an operating loss of -0.8 billion yen (-0.8; -0.0, and +0.1 versus the -1.0 billion yen forecast). Materials & Semiconductor sales were 156.5 billion yen (149.7; +6.7, and +2.5 versus the 154.0 billion yen forecast) with operating profit of 44.5 billion yen (44.9; -0.4, and -0.4 versus the 45.0 billion yen forecast). In its review of MLMAP2028 progress by field, the company cites steady growth with the ICE investment recovery as an achievement in Energy & Environment, while sales and profit declined in the Energy business due to operational issues and market weakness; in Bio & Healthcare, development of life-science products and applications is accelerating, while Medical business profits are deteriorating in certain regions; and in Materials & Semiconductor, domains were expanded through M&A and R&D in metrology applications was accelerated, with new factory investment to strengthen supply capacity and prepare for future demand growth as the challenge.

Field (Billions of Yen)	Sales 2025	Sales 2024	Sales vs 2024	Operating profit 2025	Operating profit 2024	Operating profit vs 2024
Energy & Environment	134.4	127.4	+6.9	9.4	4.2	+5.1
Bio & Healthcare	42.1	40.1	+2.0	-0.8	-0.8	-0.0
Materials & Semiconductor	156.5	149.7	+6.7	44.5	44.9	-0.4
Total	333.0	317.3	+15.7	53.0	48.3	+4.7

2026 Forecast

For 2026 the company forecasts sales of 345.0 billion yen (+11.9 billion yen versus 2025), operating profit of 56.0 billion yen (+2.9), an operating profit margin of 16.2% (+0.3p), ordinary profit of 56.5 billion yen (+2.2) and net income attributable to HORIBA, Ltd.’s shareholders of 40.5 billion yen (+3.4); sales, operating profit, ordinary profit and net income are all marked as record highs. The assumed exchange rates are 145.00 yen per U.S. dollar (-4.61 versus 2025) and 175.00 yen per euro (+5.81). The company shows the 1 yen impact (weak yen) on the 2026 forecasts as +766 million yen on sales and +372 million yen on operating profit for the U.S. dollar, and +354 million yen on sales and +7 million yen on operating profit for the euro. By field, Energy & Environment sales are forecast at 134.0 billion yen (-0.4) with operating profit of 10.0 billion yen (+0.5); Bio & Healthcare sales at 43.0 billion yen (+0.8) with operating profit of – (breakeven; +0.8); and Materials & Semiconductor sales at 168.0 billion yen (+11.4) with operating profit of 46.0 billion yen (+1.4). Among its assumptions regarding the market environment, the company notes that development of hybrid vehicles and ICEs using next-generation fuels is reaccelerating due to the moderated EV shifts in several countries, that while investment in automotive fuel cells is slowing, expectations for hydrogen utilization remain strong, that IVD analyzer and reagent markets are growing steadily in Japan and India while competition in the IVD market is intensified in Europe, the U.S. and China, and that growth in AI-driven investment in advanced logic and DRAM is increasing demand for semiconductor production equipment.

Item (Billions of Yen)	2026 Forecasts	2025 Results	2024 Results	vs 2025
Sales	345.0	333.0	317.3	+11.9
Operating Profit	56.0	53.0	48.3	+2.9
O.P.%	16.2%	15.9%	15.2%	＋0.3p
Ordinary Profit	56.5	54.2	50.1	+2.2
Net income attributable to HORIBA, Ltd.’s Shareholders	40.5	37.0	33.5	+3.4
USD/JPY	145.00	149.61	151.69	-4.61
EUR/JPY	175.00	169.19	164.05	+5.81

Field (Billions of Yen)	Sales 2026 Forecasts	Sales 2025 Results	Sales vs 2025	Operating profit 2026 Forecasts	Operating profit 2025 Results	Operating profit vs 2025
Energy & Environment	134.0	134.4	-0.4	10.0	9.4	+0.5
Bio & Healthcare	43.0	42.1	+0.8	–	-0.8	+0.8
Materials & Semiconductor	168.0	156.5	+11.4	46.0	44.5	+1.4
Total	345.0	333.0	+11.9	56.0	53.0	+2.9

Shareholder Returns

HORIBA’s basic policy targets dividend payments equal to 30% of consolidated net income attributable to HORIBA, Ltd.’s shareholders, and to execute special dividends and share buybacks timely and properly, considering investment opportunities and the cash flow situation. The dividend per share for 2025 was 450 yen (interim 80 yen / year-end 370 yen), up from the 2025 forecast of 290 yen (interim 80 yen / year-end 210 yen) and the 2024 result of 270 yen (interim 80 yen / year-end 190 yen). The 2025 dividend comprised a regular dividend of 290 yen and a special dividend of 160 yen, and the total payout ratio was 50.9% (48.6% in 2024, when the regular dividend was 245 yen and the special dividend 25 yen). For 2026 the company forecasts a dividend of 490 yen (interim 150 yen / year-end 340 yen), consisting of a regular dividend of 300 yen and a special dividend of 190 yen, with a total payout ratio of 50.8%.

Item	2026 Forecasts	2025 Results	2025 Forecasts	2024 Results
Dividend per share (yen)	490	450	290	270
— Interim (yen)	150	80	80	80
— Year-end (yen)	340	370	210	190
Regular Dividend (yen)	300	290	－	245
Special Dividend (yen)	190	160	－	25
Total Payout Ratio (%)	50.8%	50.9%	－	48.6%

Medium-Term Plan and Topics

On the progress of its medium-long term management plan MLMAP2028 “MAXIMIZE VALUE,” the company shows sales of 317.3 billion yen in 2024, 333.0 billion yen in 2025, a 2026 forecast of 345.0 billion yen and a 2028 plan of 450.0 billion yen, with operating profit of 48.3, 53.0, 56.0 and 80.0 billion yen, respectively. The 2028 plan by field is sales of 158.0 billion yen and operating profit of 15.8 billion yen for Energy & Environment, 57.0 billion yen and 5.7 billion yen for Bio & Healthcare, and 235.0 billion yen and 58.5 billion yen for Materials & Semiconductor. The company states that MLMAP2028 is currently under review, to be announced in August 2026; AI-led semiconductor growth and reaccelerating ICE development are driving growth, while shifting market conditions require strategic reviews in some businesses. Accelerated field operations are said to have created more opportunities and sped up development of new products and applications with customers.

In responding to business challenges, in Energy & Environment the company says project profitability in the Energy business (hydrogen) improved thanks to project management capability, and in response to lower order intake, restructuring is being implemented to temporarily scale down the business, including scaling down the operation of HORIBA FuelCon GmbH; in the Mobility business it maintains a strong backlog supported by the recovery of investment in ICEs by customers, while the Mechatronics business carries out restructuring, including downsizing the operation of HORIBA Europe GmbH (Germany) and closure of the Czech factory. In Bio & Healthcare, the Medical business is enhancing product differentiation and sales capabilities in the Japanese and Indian markets, has initiated structural reforms in regions where profitability has declined due to intensifying competition, and signed an MoU toward a potential alliance with Medconn, a China IVD company, promoting structural reform of the China Medical business including a closure of the factory; in the Life-science business, sales increased through expanded sales of new products, with continuous investment to develop products preparing for growth after 2027. In Materials & Semiconductor, the company expects demand for DRAM and advanced logic to continue expanding due to accelerating AI investment, and with completion of the Fukuchiyama Factory (full-scale operation in spring 2026), domestic production capacity for mass flow controllers will be strengthened to up to three times, with production volume expanded step-by-step in line with semiconductor market conditions. The Fukuchiyama Technology Center’s new building began full-scale operation, and the company acquired Pristine Deeptech, an Indian company engaged in broad research on synthetic diamonds.

As a topic, the HORIBA Group will build a “New Global Headquarters” on the Kyoto / Kisshoin headquarters site, with total investment of approx. 37.0 billion yen (plan), including demolition of existing facilities and renovation of certain buildings; completion is scheduled for January 2028, with a structure of 1 basement floor + 10 above-ground floors. On sustainability, Scope 1 and 2 (global) emissions were 59,225 t-CO₂e in 2024 (57,742 in 2023), Scope 3 (domestic) 825,487 (836,346) and Scope 3 (global) 2,141,171; the GHG reduction target is a reduction of 42% or more by 2033 (vs 2023) and carbon neutrality by 2050. The total number of international exchanges was 172 in 2025 (166 in 2024), which the company describes as a record high, up 4% compared with 2024.

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.