Toshiba Tec (6588): FY2025 Results Summary — Tariff Headwinds Dent Profit, Recovery Planned for FY2026

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Toshiba Tec Corporation (6588) announced its FY2025 consolidated business results on May 11, 2026. Net sales were 569.3 billion yen, a decrease of 7.8 billion yen from FY2024, and operating profit was 14.3 billion yen, a decrease of 5.9 billion yen year-on-year. Despite the impact of US tariffs amounting to △11.4 billion yen, profitability improved quarter by quarter as tariff measures progressed, and operating profit for the fourth quarter of FY2025 (Jan-Mar) reached 11.8 billion yen. Net profit for the year resulted in a loss due to a loss on valuation of investment securities and other factors, but year-end dividends of 20 yen will be paid as planned. For FY2026, the company forecasts operating profit of 20.0 billion yen, an increase of 5.7 billion yen year-on-year.

Consolidated Results (Full-Year Actual)

Net sales of 569.3 billion yen came in △0.7 billion yen below the forecast announced on Feb 9 (570.0 billion yen), while operating profit of 14.3 billion yen exceeded that forecast by +2.3 billion yen. Ordinary profit was 10.6 billion yen (△7.7 billion yen year-on-year), and the loss attributable to owners of parent was △2.3 billion yen, compared with a profit of 29.9 billion yen in FY2024 (△32.2 billion yen). The average exchange rates for the year were 150.22 yen to the US dollar and 173.77 yen to the euro. Figures in the tables below are in billions of yen unless otherwise noted.

Item	FY2025 Actual	FY2025 Forecast (announced on Feb 9)	FY2024 Actual	vs FY2024
Net Sales	569.3	570.0	577.0	△7.8
Operating Profit	14.3	12.0	20.3	△5.9
Ordinary Profit	10.6	8.0	18.3	△7.7
Profit/Loss Attributable to Owners of Parent	△2.3	0.0	29.9	△32.2
Dividends	20Yen	20Yen	45Yen	△25Yen

Segment Results

The business related to MFP for the domestic market, which was included in the Workplace Solutions Business Group until FY2024, has been transferred to the Retail Solutions Business Group from FY2025; FY2024 actual results are shown after segment reclassification. In the Retail Solutions Business Group, net sales were 347.6 billion yen (+0.9 billion yen year-on-year) and operating profit was 7.6 billion yen (△0.3 billion yen), with domestic operating profit of 11.5 billion yen against an overseas operating loss of △3.9 billion yen. Operating profit of the domestic retail business reached 11.5 billion yen (+40% year-on-year), while the overseas retail business and the workplace business deteriorated due to the impact of tariffs. In the Workplace Solutions Business Group, net sales were 227.8 billion yen (△9.6 billion yen) and operating profit was 6.7 billion yen (△5.6 billion yen).

Segment	Metric	FY2025 Actual	FY2024 Actual (after reclassification)
Retail Solutions Business Group	Net Sales	347.6	346.7
Retail Solutions Business Group	Operating Profit	7.6	7.9
Retail Solutions Business Group	Operating Profit (Domestic / Overseas)	11.5 / △3.9	8.2 / △0.3
Workplace Solutions Business Group	Net Sales	227.8	237.4
Workplace Solutions Business Group	Operating Profit	6.7	12.3

FY2026 Forecast

For FY2026, Toshiba Tec forecasts net sales of 590.0 billion yen (+20.7 billion yen), operating profit of 20.0 billion yen (+5.7 billion yen), ordinary profit of 16.0 billion yen (+5.4 billion yen), and profit attributable to owners of parent of 7.0 billion yen (+9.3 billion yen). The operating profit analysis for FY2026 versus FY2025 consists of recovery from the impact of tariffs (+11.4 billion yen) and an increase in sales / mix, etc. (+4.8 billion yen), offset by fixed expenses (▲6.5 billion yen) and risks such as the impact of rising prices of semiconductors, oil, etc. (▲4.0 billion yen). In the domestic retail business, introduction of major contracts is expected to enter a full-scale phase; in the overseas retail business, demand is gradually recovering; and in the workplace business, the effect of price revisions becomes evident. Temporary expenses are planned to be recorded as an extraordinary loss in order to improve the management foundation. The assumed exchange rates are 150.00 yen to the US dollar and 175.00 yen to the euro.

Item	FY2026 Forecast	FY2025 Actual	Difference vs FY2025
Net Sales	590.0	569.3	+20.7
Operating Profit	20.0	14.3	+5.7
Ordinary Profit	16.0	10.6	+5.4
Profit/Loss Attributable to Owners of Parent	7.0	△2.3	+9.3
Dividends	40Yen	20Yen	+20Yen

Segment	Metric	FY2026 Forecast	FY2025 Actual
Retail Solutions Business Group	Net Sales	372.0	347.6
Retail Solutions Business Group	Net Sales (Domestic / Overseas)	218.0 / 154.0	205.0 / 142.7
Retail Solutions Business Group	Operating Profit	13.0	7.6
Retail Solutions Business Group	Operating Profit (Domestic / Overseas)	12.5 / 0.5	11.5 / △3.9
Workplace Solutions Business Group	Net Sales	227.0	227.8
Workplace Solutions Business Group	Operating Profit	7.0	6.7

Shareholder Returns

Dividends for FY2025 were 20 yen, a decrease of 25 yen from 45 yen in FY2024. Although net profit for the year resulted in a loss, the planned recovery from the impact of tariffs progressed in the second half, leading to an improvement in operating profit; accordingly, year-end dividends of 20 yen will be paid as planned. For FY2026, the company forecasts dividends of 40 yen, an increase of 20 yen from FY2025.

Growth Business Initiatives

The company is transitioning from a hardware-centric business model to a recurring solutions business focused on addressing customer challenges. In the domestic retail business, ELERA domestic sales has expanded by approx. 230 companies and 1,600 stores since last year, reaching 640 contracted companies and 7,900 stores in FY2025 (FY2024: 410 companies and 6,300 stores). The recurring sales ratio, excluding major contracts, rose from 25% in FY2024 to 28% in FY2025, against an FY2030 target of 50%. In the overseas retail business, ELERA sales for FY2025 were $45M, and ELERA is deployed by 13 of the world top retailers in more than 30 countries; among the top 10 U.S. retailers, 7 are the company’s customers and 4 have implemented ELERA. ELERA received the VIP award in the “Best Multi-Vendor Commerce Platform” category at NRF 2026. In the workplace business, solutions sales increased by 4% year-on-year on a local currency basis, with DMS, cloud-linked solutions, and Auto-ID solutions serving as key growth drivers.

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.