Ushio Inc. (6925): FY2025 Results Summary — Operating Profit Up 35.5% on Structural Reforms; OSRAM Lamp Business Acquisition Completed

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Ushio Inc. (6925) announced its financial results for FY2025 (April 1, 2025 through March 31, 2026) on May 14, 2026. Net sales rose to 179.2 billion yen (up 0.9% year on year), operating profit increased to 11.9 billion yen (up 35.5%), and profit attributable to owners of parent came to 7.9 billion yen (up 17.6%), with both revenue and earnings coming in above plan. The company cites structural reform benefits from its business portfolio revamp as the main driver, despite expanded forward investments in DLT and other lithography equipment. Figures in the presentation are rounded down to the nearest ¥0.1 billion.

Consolidated Results (Full-Year Actual)

The operating margin improved to 6.7% from 5.0% a year earlier (+1.7P). Ordinary profit was 13.3 billion yen (up 7.2%), EPS was 94.88 yen, and ROE was 4.0% (adjusted ROE: 4.6%, excluding one-time expenses related to the acquired OSRAM business and the increase in valuation and translation adjustments, etc. within net assets). Extraordinary items included a gain on sale of investment securities of 10.0 billion yen (FY2024: 9.5 billion yen), business restructuring expenses of 6.3 billion yen (FY2024: 5.7 billion yen), and impairment losses of 1.3 billion yen (FY2024: 1.1 billion yen). Against the previous forecast announced on March 19, 2026 (net sales 175.0 billion yen, operating profit 11.5 billion yen), achievement rates were 102.4% for net sales and 104.0% for operating profit.

Item (Billions of yen)	FY2025 Result	FY2024 Result	YoY Change	YoY %
Net Sales	179.2	177.6	+1.5	+0.9%
Operating Profit	11.9	8.8	+3.1	+35.5%
Operating Margin	6.7%	5.0%	+1.7P	–
Ordinary Profit	13.3	12.4	+0.8	+7.2%
Profit Attributable to Owners of Parent	7.9	6.7	+1.1	+17.6%
EPS (yen)	94.88	70.27	+24.61	+35.0%
ROE	4.0%	3.1%	+0.9P	–

Segment Results

In the Industrial Processes (IP) business, net sales declined 2.3% as impacts of past overinvestments lowered sales of steppers, and operating profit fell 32.6%, reflecting expanded forward investments in DLT and other lithography equipment (¥3.4 billion recorded) and one-time valuation losses (¥1.4 billion in valuation losses on lithography equipment, etc.). In the Visual Imaging (VI) business, sales increased on robust demand for visual production in the entertainment area, and operating profit jumped 539.7% on structural reform benefits and a decrease in inventory valuation losses (FY2024: ¥3.2 billion; FY2025: ¥0.6 billion). The Life Sciences (LS) and Photonics Solutions (PHS) businesses both returned to profitability through strategic selection and concentration of projects.

Segment (Billions of yen)	Net Sales FY2025	Net Sales FY2024	Operating Profit FY2025	Operating Profit FY2024
Industrial Processes	77.1	78.9	6.4	9.6
Visual Imaging	83.8	80.8	4.6	0.7
Life Sciences	6.2	6.1	0.1	-1.0
Photonics Solutions	10.5	10.3	0.5	-0.4
Others	1.3	1.3	0.1	0.0
Total	179.2	177.6	11.9	8.8

FY2026 Forecast

For FY2026, Ushio forecasts net sales of 210.0 billion yen (up 30.7 billion yen, or 17.2%, year on year), operating profit of 14.0 billion yen (up 17.1%), and profit attributable to owners of parent of 10.5 billion yen (up 31.3%). The sales increase includes +¥27.0 billion from the acquired OSRAM business (the ams-OSRAM Group’s lamp business), whose operating profit impact is forecast at -¥0.5 billion due to one-time PMI costs and goodwill amortization, with earnings contribution expected from FY2027 onward. Sales of semiconductor-related light sources and lithography equipment are expected to increase in the IP business, while structural reform benefits continue, mainly in the VI business. ROE is forecast at 5.2% (adjusted ROE: 7.0%). Forex assumptions are USD at 150 yen and EUR at 175 yen.

Item (Billions of yen)	FY2026 Forecast	FY2025 Result	Change	%
Net Sales	210.0	179.2	+30.7	+17.2%
Operating Profit	14.0	11.9	+2.0	+17.1%
Ordinary Profit	14.0	13.3	+0.6	+4.9%
Profit Attributable to Owners of Parent	10.5	7.9	+2.5	+31.3%
EPS (yen)	132.27	94.88	+37.38	+39.4%
Annual Dividend (yen)	70	70	–	–

Shareholder Returns

The annual dividend for FY2025 is 70 yen per share, and the FY2026 plan is also 70 yen per share (unchanged year on year). Under the New Growth Strategy, the company has set a dividend floor of ¥70 per share annually for FY2024-FY2026 and a policy of investing a cumulative ¥50.0-60.0 billion in share buybacks over FY2024-2026. Ushio repurchased ¥20.0 billion in shares in FY2025 (including shares repurchased up to April 28, 2026) and has completed ¥50.0 billion in share repurchases under Phase I; FY2026 buybacks are to be conducted flexibly.

Item	FY2024	FY2025	FY2026 (Plan)
Dividends per share (yen)	70	70	70
Share buybacks (Billions of yen)	30.0	20.0	To be conducted flexibly

Medium-Term Plan / Topics

FY2025 was Year 2 of the New Growth Strategy (Phase I: FY2024-2026). The company achieved PBR above 1.0x, and structural reform benefits (fixed cost reductions) reached ¥6.7 billion in FY2025, exceeding the initial assumption of ¥5.7 billion (+¥1.0 billion). Net assets were reduced from ¥236.9 billion as of March 31, 2024 to ¥184.0 billion as of March 31, 2026, and cross-shareholdings were cut from 11 issues to 6 issues over the same period, with a policy of reducing cross-shareholdings to zero by 2030. The Phase I target of ROE of 8% or more is expected to remain unachieved in FY2026 due to the delay in lithography equipment recovery and ramp-up, but the company aims to achieve it as early as possible, along with the ROE target of 12% or more in 2030.

On March 2, 2026, Ushio completed the acquisition of the ams-OSRAM Group’s lamp business for an acquisition price of approximately ¥17.3 billion (including advisory fees of ¥1.2 billion). The acquired business contributed net sales of ¥1.0 billion in FY2025 with limited impact on operating profit; for FY2026, it is forecast to add net sales of ¥27.0 billion with an operating profit impact of -¥0.5 billion, and from FY2027 onward the company expects an ongoing operating margin above 10% including synergy effects. In other portfolio moves, Ushio decided to partially wind down its EUV business for EUV mask inspection, recording a 1.3 billion yen valuation loss on related inventory as an extraordinary loss in FY2025 Q4, with an FY2026 revenue impact of -¥1.5 billion (-40%), and decided to transfer its semiconductor laser device business to Kyocera (scheduled for April 2027).

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.