Ricoh (7752): FY2025 Results Summary — Operating Profit Up 42.1% on Office Services Growth and Cost Controls

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Ricoh Company, Ltd. reported sales of 2,608.3 billion yen and operating profit of 90.7 billion yen for the year ended March 31, 2026, which the company defines as FY2025. Operating profit rose 1.4-fold year over year on Office Services growth, cost controls, and favorable foreign exchange rates. Profit attributable to owners of the parent came to 55.6 billion yen. For FY2026 the company is targeting sales of 2,700.0 billion yen and operating profit of 95.0 billion yen, alongside a higher dividend and a treasury stock repurchase.

Consolidated Results (Full-Year Actual)

Sales increased 3.2% to 2,608.3 billion yen and gross profit rose 2.4% to 889.1 billion yen, while selling, general and administrative expenses declined 0.8% to 798.4 billion yen. Operating profit advanced 42.1% to 90.7 billion yen and the operating margin improved 1.0 point to 3.5%. ROE improved to 5.1% from 4.4% and ROIC to 4.0% from 3.2%. The company states that gains from its Corporate Value Improvement Project exceeded the initial forecast by 37.2 billion yen, bringing the combined total for FY2024 and FY2025 to an aggregate 57.8 billion yen, and that the net earnings impact of higher tariffs, price pass-throughs, and lower demand was around 12 billion yen.

Item (Billions of yen)	FY2025	FY2024	Change
Sales	2,608.3	2,527.8	+80.4 (+3.2%)
Gross profit	889.1	868.6	+20.5 (+2.4%)
Gross margin	34.1 %	34.4 %	–
Selling, general and administrative expenses	798.4	804.7	-6.3 (-0.8%)
SG&A ratio	30.6 %	31.8 %	–
Operating profit	90.7	63.8	+26.8 (+42.1%)
Operating margin	3.5 %	2.5 %	+1.0pt
Profit attributable to owners of the parent	55.6	45.7	+9.9 (+21.8%)
EPS (Yen)	97.80	78.11	+19.69
ROE	5.1%	4.4%	+0.7pt
ROIC	4.0%	3.2%	+0.8pt
Average exchange rate (Yen/US$)	150.79	152.65	-1.86
Average exchange rate (Yen/euro)	174.81	163.86	+10.95
Capital expenditures	48.8	48.9	-0.0
Depreciation	44.9	44.8	+0.1
R&D expenditures	77.4	95.0	-17.5

Net cash provided by operating activities was 158.1 billion yen against 136.8 billion yen a year earlier, and free cash flow rose to 85.5 billion yen from 57.5 billion yen, which the company attributes to higher earnings and proceeds from business and asset divestments. Total assets stood at 2,540.1 billion yen as of March 31, 2026, up 183.0 billion yen from a year earlier, and total equity was 1,187.4 billion yen, up 132.7 billion yen.

Segment Results

RICOH Digital Services sales rose to 1,988.5 billion yen, but segment operating profit declined to 27.9 billion yen as another lackluster Office Printing performance and one-time expenses outweighed higher Office Services revenues. Office services business sales grew 9% to 1,009.3 billion yen (+8% excluding foreign exchange impact), with Japan up 15.1% to 537.1 billion yen, Europe up 6.5% to 273.9 billion yen (-0.2% excluding forex impact), and the Americas down 1.6% to 170.7 billion yen (-0.4% excluding forex impact). RICOH Digital Products lifted operating profit to 31.5 billion yen on ETRIA contributions, structural reinforcements, and cost controls. RICOH Graphic Communications saw sales fall 2.9% to 284.0 billion yen amid cautious customer investment tied to U.S. tariff policies. RICOH Industrial Solutions returned to an operating profit of 2.4 billion yen from a 1.8 billion yen loss.

Segment (Billions of yen)	Metric	FY2025	FY2024
RICOH Digital Services	Sales	1,988.5	1,930.1
RICOH Digital Services	Operating profit	27.9	32.2
RICOH Digital Products	Sales	587.1	584.6
RICOH Digital Products	Operating profit	31.5	28.7
RICOH Graphic Communications	Sales	284.0	292.6
RICOH Graphic Communications	Operating profit	18.6	23.1
RICOH Industrial Solutions	Sales	106.6	113.2
RICOH Industrial Solutions	Operating profit	2.4	-1.8
Other	Sales	61.6	56.2
Other	Operating profit	-3.3	-5.5
Corporate and eliminations	Sales	-419.7	-448.9
Corporate and eliminations	Operating profit	13.4	-12.9
Total	Sales	2,608.3	2,527.8
Total	Operating profit	90.7	63.8

FY2026 Forecast

Ricoh is targeting FY2026 sales of 2,700.0 billion yen (+3.5%) and operating profit of 95.0 billion yen (+4.7%), with profit attributable to owners of the parent of 62.0 billion yen (+11.4%) and EPS of 111.04 yen. Assumed average exchange rates are 150.00 yen to the U.S. dollar and 175.00 yen to the euro. The company says higher Workplace Services recurring earnings should drive profit growth, estimates a 20 billion yen impact from rising semiconductor memory costs, and has set aside a 10 billion yen contingency reserve for other cost increases, including for petroleum-based materials and transportation.

Item (Billions of yen)	FY2026 Forecast	FY2025 (Actual)	Change
Sales	2,700.0	2,608.3	+3.5%
Gross profit	920.0	889.1	+3.5%
Selling, general and administrative expenses	825.0	798.4	+3.3%
Operating profit	95.0	90.7	+4.7%
Operating margin	3.5%	3.5 %	+0.0pt
Profit attributable to owners of the parent	62.0	55.6	+11.4%
EPS (Yen)	111.04	97.80	+13.24
ROE	5.4%	5.1%	+0.3pt
ROIC	4.4%	4.0%	+0.4pt
Average exchange rate (Yen/US$)	150.00	150.79	-0.79
Average exchange rate (Yen/euro)	175.00	174.81	+0.19
Capital expenditures	60.0	48.8	+11.1
Depreciation	45.0	44.9	+0.0
R&D expenditures	80.0	77.4	+2.5

Ricoh revamped its segments in line with Mid-Term Strategy ’26: Office Printing (sales) was transferred to Digital Products, Office Services was renamed Workplace Services, and inkjet printing technologies were consolidated and transferred to Graphic Communications. The FY2026 forecast below is presented on the new segment basis, together with restated FY2025 figures.

New segment (Billions of yen)	Metric	FY2026 Forecast	FY2025 (restated)
Workplace Services	Sales	1,130.0	1,106.7
Workplace Services	Operating profit	50.0	23.6
Digital Products	Sales	1,105.0	1,073.9
Digital Products	Operating profit	57.0	77.4
Graphic Communications	Sales	310.0	284.0
Graphic Communications	Operating profit	-5.5	-8.8
Industrial Solutions	Sales	115.0	106.6
Industrial Solutions	Operating profit	4.5	3.3
Other (Camera, New business)	Sales	63.8	61.7
Other (Camera, New business)	Operating profit	-0.6	-5.8
Eliminations and corporate	Sales	-23.8	-24.7
Eliminations and corporate	Operating profit	-10.4	1.0
Total	Sales	2,700.0	2,608.3
Total	Operating profit	95.0	90.7

Shareholder Returns

Ricoh maintains a 50% total return target and says it will lift earnings per share by boosting dividends and repurchasing shares. The FY2025 dividend was raised to 40 yen per share (20 yen interim and 20 yen year-end) for a payout ratio of 40.9%, and the FY2026 dividend is to be lifted to 44 yen per share (22 yen interim and 22 yen year-end) for a payout ratio of 39.6%. The company will also establish a treasury stock repurchase of 25 billion yen as additional shareholder returns, bringing the FY2026 total shareholder return ratio to 79.9%.

Item	FY2024	FY2025	FY2026 (Forecast)
Dividends per share (yen)	38.0	40.0	44.0
Payout ratio	48.6%	40.9%	39.6%
Total return ratio	163.4%	40.9%	79.9%
Share repurchases (billions of yen)	52.5	–	25.0

Mid-Term Plan / Topics

Against FY2025 key performance indicators for priority measures, the Office services recurring revenue growth rate came in at +4% versus a +10% target, the proprietary applications sales growth rate at +11% versus +25%, the domestic IT services sales growth rate at +10% in line with its +10% target, and the Japan Scrum series sales growth rate at +21% versus a +0% target. Companywide R&D expenditures were 77.4 billion yen against a target of below 83 billion yen. Scrum series sales totaled 223.6 billion yen (+21%), comprising Scrum Packages of 80.3 billion yen (+7%) and Scrum Assets of 143.2 billion yen (+30%), with Scrum Packages unit sales of 100,822 (+11%).

Among FY2025 initiatives, the company lifted recurring revenues in Japan by 15% by adding service and support contracts tied to PC replacements and expanding application services, divested its U.S. Managed IT Services business, and acquired a Workplace Experiences provider in the Asia-Pacific region, its fourth such purchase after those in Latin America and North America. Oki Electric joined ETRIA in October 2025. For FY2026, Ricoh says demand for Commercial Printing hardware and inkjet heads should recover from the second half, while non-hardware demand continues to grow.

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.