Terumo (4543): FY2025 Results Summary — Record Revenue and Profit Despite Tariffs and One-Time Costs, FY26 Targets Sixth Straight Record Year

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

Terumo Corporation reported record revenue and profit for the fiscal year ended March 31, 2026 (FY2025). Full-year revenue reached a record 1.1 trillion yen (11,319, 100M JPY), up 9% year on year (+9% excluding FX impact) — the fifth consecutive year of record sales — led by strong demand growth in North America. Operating profit also hit a record 176.3 billion yen (1,763, 100M JPY, +12% YoY), even after absorbing U.S. tariff impacts and roughly 48.8 billion yen of one-time expenses tied to acquisitions and business portfolio optimization. For FY2026, Terumo guides for a sixth consecutive year of record revenue, operating profit and profit for the year, supported by continued organic growth and a full-year contribution from Terumo Organ Technologies (formerly OrganOx), consolidated since October 2025.

Consolidated Results (Full-Year Actual)

Revenue growth was driven mainly by Terumo Interventional Systems (TIS) and Global Blood Solutions (GBS), particularly in North America. Gross profit rose 6% YoY to 594.7 billion yen (5,947, 100M JPY), while SG&A expenses increased 8% to 333.1 billion yen (3,331, 100M JPY) in line with business expansion, and R&D expenses rose 4% to 76.9 billion yen (769, 100M JPY). Adjusted operating profit reached a record 219.4 billion yen (2,194, 100M JPY), up 8% YoY. Profit before tax rose 15% YoY to 1,783 (100M JPY), and profit for the year rose 16% YoY to 1,359 (100M JPY). Full-year free cash flow was 1,132 (100M JPY), versus 1,283 (100M JPY) in FY2024.

FY2025 included one-time expenses of approximately 48.8 billion yen (488, 100M JPY), mainly related to acquisition costs and business portfolio optimization, versus 42.9 billion yen (429, 100M JPY) assumed in the Q3 forecast — an increase of about 6.0 billion yen driven by litigation-related costs recognized in Q4. These litigation-related costs relate to specific matters in the United States and were recorded to mitigate uncertainty from prolonged litigation; the company states this does not represent an admission of legal liability and does not affect its mid- to long-term strategy. The absence of these one-time items is expected to contribute more than 10 billion yen to FY2026 profit growth.

Item	FY2025	FY2024	Change
Revenue (100M JPY)	11,319	10,362	+9% YoY (+9% excl. FX)
Gross Profit (100M JPY)	5,947	5,607	+6% YoY (+6% excl. FX)
SG&A Expenses (100M JPY)	3,331	3,074	+8% YoY (+8% excl. FX)
R&D Expenses (100M JPY)	769	742	+4% YoY (+4% excl. FX)
Other Income and Expenses (100M JPY)	-84	-214	–
Operating Profit (100M JPY) / OP margin	1,763 (15.6%)	1,577 (15.2%)	+12% YoY (+12% excl. FX)
Adjusted Operating Profit (100M JPY) / Adj. OP margin	2,194 (19.4%)	2,034 (19.6%)	+8% YoY (+8% excl. FX)
Profit before Tax (100M JPY)	1,783	1,546	+15% YoY
Profit for the Year (100M JPY)	1,359	1,170	+16% YoY
Free Cash Flow (100M JPY)	1,132	1,283	–

Segment Results

C&V (Cardiac and Vascular): revenue grew, led by double-digit U.S. growth in TIS (excluding FX impact) on volume increases and pricing measures, plus continued growth in the Neuro business in China and Japan. FY2025 profit margin was 24%; Q4 margin temporarily declined to 19%, mainly due to impairment losses tied to a change in development locations for new TIS products and negative stock-basis FX impact. TMCS (Medical Care Solutions): growth was led by Pharmaceutical Solutions, driven by the domestic CDMO business and strong overseas PLAJEX sales; Hospital Care Solutions grew in Asia after a prior product supply issue was resolved. Figures below exclude the Leverkusen Plant (consolidated from Q3), which had a negative profit impact of 3.7 billion yen; including Leverkusen, Q4 YTD Adjusted Operating Profit was 21.6 billion yen (profit margin 10%). TBCT (Blood and Cell Technologies): revenue and profit increased on expanded deployment of Reveos (automated whole blood processing system) and growth in Global Blood Solutions’ plasma business (Rika), plus continued strength in Global Therapy Innovations, particularly in North America. Terumo Organ Technologies (OrganOx, consolidated from Q3 FY2025 following the October 29, 2025 acquisition): Q4 revenue was 5.1 billion yen and Q4 adjusted operating profit was 1.1 billion yen; on a full fiscal-year basis, revenue grew 48% YoY (local currency) with a 21% profit margin, supported by higher liver transplant volumes and an expanding customer base.

Segment	Metric	FY2025 (Q4 YTD)	FY2024 (Q4 YTD)
C&V	Revenue (100M JPY)	6,764	6,244
C&V	Adjusted Operating Profit (100M JPY)	1,640	1,547
TMCS (excl. Leverkusen Plant)	Revenue (100M JPY)	2,161	2,112
TMCS (excl. Leverkusen Plant)	Adjusted Operating Profit (100M JPY)	252	230
TBCT	Revenue (100M JPY)	2,310	2,003
TBCT	Adjusted Operating Profit (100M JPY)	336	265
Terumo Organ Technologies (Q4 only; consolidated from Oct. 2025)	Revenue	5.1 B JPY	–
Terumo Organ Technologies (Q4 only; consolidated from Oct. 2025)	Adjusted Operating Profit	1.1 B JPY	–

FY2026 Guidance

FY2026 is the final year of Terumo’s five-year growth strategy GS26, and the company expects to achieve record-high revenue and profit, on track to meet GS26’s financial targets. Key guidance assumptions: cost increases stemming from the Middle East situation are assumed based on currently available information; U.S. tariffs (Section 122 of the Trade Act) are assumed at 10% through the end of July and 15% thereafter. Under these assumptions, revenue is expected to grow 8% (local currency), while operating profit is projected to grow 20% excluding FX impact — significantly outpacing revenue growth — mainly due to the absence of the one-time expenses recorded in FY2025.

Item	FY2026 Guidance	FY2025 Actual	YoY / Notes
Revenue (100M JPY)	12,390	11,319	+9% YoY (+8% excl. FX)
Operating Profit (100M JPY) / OP margin	2,245 (18.1%)	1,763 (15.6%)	+27% YoY (+20% excl. FX)
Adjusted Operating Profit (100M JPY) / Adj. OP margin	2,615 (21.1%)	2,194 (19.4%)	+19% YoY (+12% excl. FX)
Profit for the Year (100M JPY)	1,653	1,359	+22% YoY
ROIC	8.2%	7.5%	–
ROE	10.2%	9.2%	–
Exchange rate (USD/EUR)	155JPY/180JPY	153JPY/164JPY	–
Operating Profit excl. M&A executed in FY25 (100M JPY) / OP margin	2,425 (20.0%)	1,847 (16.4%)	+31% YoY (+24% excl. FX)
ROIC excl. M&A executed in FY25	10.0%	8.5%	–

Company	Revenue (100M JPY)	Revenue YoY% (excl. FX)	Adjusted OP (100M JPY)	Adjusted OP YoY%	Adjusted OP Margin
C&V	7,340	+8% (+6%)	1,960	+20%	27%
TMCS	2,343	+8% (+8%)	244	+13%	10%
TMCS (excl. Leverkusen)	2,340	+8% (+8%)	330	+29%	14%
TBCT	2,450	+6% (+5%)	385	+15%	16%
OT (Terumo Organ Technologies)	255	n/a (no prior-year comparison)	51	n/a	20%

Shareholder Returns

Terumo’s shareholder return policy is to continue a stable increase in dividends, with a steadily expanding increase amount. For FY2025, the company expects an annual dividend of 30 yen per share, with a payout ratio of 33%. For FY2026, it plans to increase the dividend by 6 yen to 36 yen per share, with a payout ratio of 32%. The company states it continues to prioritize growth investments while remaining committed to stable and progressive dividend increases.

Medium-Term Plan / Topics

As of April 2026, the business segment formerly operated as OrganOx (acquired in October 2025) has been renamed ‘Terumo Organ Technologies.’ The organ preservation market utilizing Normothermic Machine Perfusion (NMP) is expected to continue expanding, and the company aims for growth exceeding the market, supported by increasing liver transplant procedures and an expanding customer base. From FY2026 onward, Terumo states it will continue to generate growth opportunities by focusing resources on growth areas and expanding sales of new products across C&V (including radial-access procedure adoption), TMCS (including CDMO/PLAJEX expansion and medication management solutions), and TBCT (including continued Reveos rollout and AI/automation-driven operational improvements).

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.