Nikon Corporation (7731): FY2025 Results Summary — Operating Loss on Digital Manufacturing Impairment

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

Note on fiscal-year labels: this article follows the site convention of classifying the most recent completed full year as FY2025, while Nikon’s own materials label the year ended March 31, 2026 as “FY2026/3” and the year ending March 31, 2027 as “FY2027/3”, and those labels are kept in the text and tables below.

Nikon Corporation reported revenue of ¥677.1B for the year ended March 31, 2026, down ¥38.1B or -5.3% year on year, and swung to an operating loss of ¥112.4B from operating profit of ¥2.4B a year earlier. Loss attributable to owners of parent was ¥86.0B, against profit of ¥6.1B in the prior year, as one-time profit and losses of -¥105.6B — led by ¥90.6B of fixed-asset impairment losses in the Digital Manufacturing Business — weighed on results. The company describes company total revenue as mostly in line with plan, while operating profit missed plan on unplanned one-time costs including costs related to the sale of MRMC shares in Imaging Products and fixed-asset impairment losses in Precision Equipment. For the year ending March 31, 2027, Nikon forecasts revenue of ¥740.0B and a return to operating profit of ¥10.0B.

Consolidated Results (Full-Year Actual)

Revenue declined mainly due to lower sales in Precision Equipment, while operating profit was down substantially due to one-time costs including impairment losses of fixed assets in Digital Manufacturing and product mix changes in Imaging Products. Against the previous forecast of February 5, revenue came in ¥2.1B higher at ¥677.1B, but operating profit was ¥12.4B below plan. The impact on operating profit in FY2026/3 from tariffs was -¥6.8B. Assumed exchange rates for the year were ¥151 to the US dollar and ¥175 to the euro, versus ¥153 and ¥164 respectively in FY2025/3.

Item	FY2025/3 Actual	FY2026/3 Actual	Change (Amount)	Change (%)
Revenue	¥715.2B	¥677.1B	-¥38.1B	-5.3%
Operating profit	¥2.4B	-¥112.4B	-¥114.8B	–
Operating profit % vs Revenue	0.3%	-16.6%	-16.9P	–
Profit before tax	¥4.5B	-¥106.5B	-¥111.0B	–
Profit attributable to owners of parent	¥6.1B	-¥86.0B	-¥92.1B	–
FCF	-¥21.7B	-¥17.0B	+¥4.7B	–
ROE	0.9%	-14.1%	-15.0P	–
EPS	¥17.86	-¥261.57	-¥279.43	–
Annual Dividends	¥50	¥40	-¥10	–
Exchange Rate: US$	¥153	¥151	–	–
Exchange Rate: EURO	¥164	¥175	–	–

Segment Results

In Imaging Products, revenue was ¥290.0B and operating profit ¥16.7B, down ¥24.6B or -59.5% year on year. Nikon states sales volumes grew, mainly in the volume-zone “Z5II” and “Z50II” and its first digital cinema camera “ZR”, which incorporates technology from RED, but revenue and profit declined on the one-time costs described above, tariff impacts, lower ASPs driven by product mix changes and increased promotional spend in the face of intensifying competition. Precision Equipment revenue fell ¥34.7B to ¥167.2B on lower sales volumes of FPD and ArF dry and immersion lithography systems, and the segment posted an operating loss of ¥4.5B. Healthcare revenue was ¥111.9B with operating profit of ¥1.5B, down ¥5.2B, as Life Science Solutions revenues contracted due to stagnation in the core US market. The Components Business was the one segment to grow profit, with revenue of ¥76.1B and operating profit of ¥9.5B, up ¥2.4B or +33.0%, on increased sales of video measuring systems for electronic components and semiconductor applications and FPD photomask substrates. Digital Manufacturing revenue rose ¥4.7B to ¥28.0B on increased sales of SLM’s large-format metal 3D printers and FX tailwinds, but operating profit dropped ¥91.0B to -¥106.2B due to ¥90.6B in impairment losses and ¥0.6B in restructuring costs.

Segment	Metric	FY2025/3 Actual	FY2026/3 Actual	Change (Amount)	Change (%)
Imaging Products Business	Revenue	¥295.3B	¥290.0B	-¥5.3B	-1.8%
Imaging Products Business	Operating profit	¥41.3B	¥16.7B	-¥24.6B	-59.5%
Precision Equipment Business	Revenue	¥201.9B	¥167.2B	-¥34.7B	-17.2%
Precision Equipment Business	Operating profit	¥1.5B	-¥4.5B	-¥6.0B	–
Healthcare Business	Revenue	¥116.4B	¥111.9B	-¥4.5B	-3.9%
Healthcare Business	Operating profit	¥6.7B	¥1.5B	-¥5.2B	-76.8%
Components Business	Revenue	¥74.1B	¥76.1B	+¥2.0B	+2.8%
Components Business	Operating profit	¥7.1B	¥9.5B	+¥2.4B	+33.0%
Digital Manufacturing Business	Revenue	¥23.3B	¥28.0B	+¥4.7B	+20.3%
Digital Manufacturing Business	Operating profit	-¥15.2B	-¥106.2B	-¥91.0B	–
Others (incl. Corporate expenses, etc.)	Revenue	¥4.0B	¥3.6B	-¥0.4B	-8.7%
Others (incl. Corporate expenses, etc.)	Operating profit	-¥39.1B	-¥29.4B	+¥9.7B	–
Consolidated	Revenue	¥715.2B	¥677.1B	-¥38.1B	-5.3%
Consolidated	Operating profit	¥2.4B	-¥112.4B	-¥114.8B	–

One-Time Profit and Losses

One-time profit and losses in FY2026/3 totalled -¥105.6B on a consolidated basis, versus -¥27.2B of one-time costs in FY2025/3. The largest item was ¥90.6B of impairment losses on fixed assets booked in Digital Manufacturing in Q3, together with ¥0.6B of restructuring costs in Q4, for a segment total of -¥91.3B. Precision Equipment recorded -¥9.2B, including ¥5.7B of fixed-asset impairment losses and ¥5.5B of inventory write-downs in Q4, partly offset by a ¥2.9B gain from a transfer of business in Q2. Imaging Products booked -¥3.2B of costs related to the sale of MRMC shares, Healthcare -¥2.9B, and the Components Business -¥2.0B including ¥1.4B of Avonix fixed-asset impairment losses. Others recorded +¥3.0B, helped by a ¥4.9B capital gain on the sale of idle land in Q4.

FY2027/3 Forecast

For the year ending March 31, 2027, Nikon forecasts revenue of ¥740.0B, up ¥62.9B or +9.3%, expecting revenue growth on semiconductor-related business expansion, including semiconductor ArF dry and immersion lithography systems and EUV related components, a market recovery in Healthcare mainly in the US academia market, sales expansion in Digital Manufacturing, and FX tailwinds. Operating profit is forecast at ¥10.0B, up ¥122.4B, and profit attributable to owners of parent at ¥10.0B, up ¥96.0B, on the disappearance of one-time P&L factors incurred in the previous year, profit growth on increased sales of ArF dry and immersion lithography systems in Precision Equipment, and lower amortization costs of intangible assets and restructuring benefits in Digital Manufacturing. Assumed exchange rates are ¥155 to the US dollar and ¥180 to the euro.

Item	FY2026/3 Actual	FY2027/3 Forecast	Change
Revenue	¥677.1B	¥740.0B	+¥62.9B (+9.3%)
Operating profit	-¥112.4B	¥10.0B	+¥122.4B
Operating profit % vs Revenue	-16.6%	1.4%	+18.0P
Profit before tax	-¥106.5B	¥14.0B	+¥120.5B
Profit attributable to owners of parent	-¥86.0B	¥10.0B	+¥96.0B
ROE	-14.1%	1.7%	+15.8P
EPS	-¥261.57	¥30.36	+¥291.93
Annual Dividends	¥40	¥20	-¥20
Exchange Rate: US$	¥151	¥155	–
Exchange Rate: EURO	¥175	¥180	–

By segment, Precision Equipment is expected to return to an operating profit of ¥12.0B on revenue of ¥188.0B, as a decline in FPD lithography system sales volumes is offset by an increase in semiconductor ArF dry and immersion lithography system sales volumes; the digital lithography system “DSP-100” has secured its first order and the first unit of the new ArF dry lithography system “NSR-S333F” was shipped. Digital Manufacturing operating losses are expected to narrow to ¥4.0B, and Nikon states that SLM is to turn profitable in FY2027/3 and the total segment in FY2028/3. Imaging Products operating profit is guided slightly lower at ¥16.0B as soaring memory prices and other factors weigh, despite FX tailwinds and the disappearance of one-time costs booked in the previous year. Note that from FY2027/3 the Components Business was renamed the Industry Business, and Nikon Vision Co., Ltd. was transferred from the Industry Business to the Imaging Products Business, with FY2026/3 figures in the forecast table restated to reflect the segment change.

Segment	Metric	FY2026/3 Actual (restated)	FY2027/3 Forecast	Change (Amount)	Change (%)
Imaging Products Business	Revenue	¥290.1B	¥303.0B	+¥12.9B	+4.4%
Imaging Products Business	Operating profit	¥17.2B	¥16.0B	-¥1.2B	-7.1%
Precision Equipment Business	Revenue	¥167.2B	¥188.0B	+¥20.8B	+12.4%
Precision Equipment Business	Operating profit	-¥4.5B	¥12.0B	+¥16.5B	–
Healthcare Business	Revenue	¥111.9B	¥127.0B	+¥15.1B	+13.5%
Healthcare Business	Operating profit	¥1.5B	¥6.0B	+¥4.5B	+284.3%
Industry Business (formerly Components Business)	Revenue	¥76.1B	¥84.0B	+¥7.9B	+10.4%
Industry Business (formerly Components Business)	Operating profit	¥9.0B	¥12.0B	+¥3.0B	+33.3%
Digital Manufacturing Business	Revenue	¥28.0B	¥34.0B	+¥6.0B	+21.0%
Digital Manufacturing Business	Operating profit	-¥106.2B	-¥4.0B	+¥102.2B	–
Others (incl. Corporate expenses, etc.)	Revenue	¥3.6B	¥4.0B	+¥0.4B	+9.2%
Others (incl. Corporate expenses, etc.)	Operating profit	-¥29.3B	-¥32.0B	-¥2.7B	–
Consolidated	Revenue	¥677.1B	¥740.0B	+¥62.9B	+9.3%
Consolidated	Operating profit	-¥112.4B	¥10.0B	+¥122.4B	–

Shareholder Returns

For FY2026/3 Nikon paid a year-end dividend of ¥15, giving an annual dividend of ¥40, down ¥10 year on year from ¥50. For FY2027/3 the planned annual dividend is ¥20, consisting of an interim dividend of ¥10 and a year-end dividend of ¥10, with a planned dividend payout ratio of 65.9%.

Financial Position and Other Data

Total assets stood at ¥1,075.0B as of March 31, 2026, against ¥1,110.5B a year earlier, and the equity ratio was 54.6% versus 57.4% at the end of FY2025/3. Total equity was ¥588.1B and interest-bearing debt ¥239.8B, while inventories rose to ¥332.8B from ¥307.5B. R&D expenditures were ¥77.1B in FY2026/3, equivalent to 11.4% of revenue, and are planned at ¥73.5B, or 9.9% of revenue, in FY2027/3. Capital expenditures are forecast at ¥75.0B for FY2027/3 against ¥59.8B in FY2026/3. Free cash flow was -¥17.0B in FY2026/3, compared with -¥21.7B in the prior year. By region, FY2026/3 revenue was split ¥100.3B in Japan (15%), ¥166.3B in the United States (25%), ¥121.3B in Europe (18%), ¥170.4B in China (25%) and ¥118.7B in other regions (18%). For FY2027/3, Nikon estimates that a ¥1 move in the US dollar affects revenue by approximately ¥2.3B and operating profit by approximately ¥0.5B, while a ¥1 move in the euro affects revenue by approximately ¥0.7B and operating profit by approximately ¥0.3B.

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.