Nikon Corporation

For FY2025, Nikon reported revenue of ¥715.2 billion, operating profit of ¥2.4 billion, and profit attributable to owners of the parent of ¥6.1 billion. Revenue was slightly lower because growth in imaging products and healthcare, plus the weaker yen, did not offset declines in semiconductor-related businesses within precision equipment and components. Profit was also pressured by ¥27.2 billion of one-time costs. For FY2026, Nikon expects revenue of ¥710 billion, operating profit of ¥36 billion, and profit attributable to owners of the parent of ¥30 billion. The company said the operating profit increase should mainly come from the absence of last year’s one-time costs, improved profitability in some businesses, idle asset sales, lower R&D spending, and restructuring effects.

CEO Toshikazu Umatate said the current mid-term plan has made steady progress in building the business foundation, but profitability remains below expectations and still needs work. He framed FY2025 as a foundation-building year for where Nikon wants to be in 2030, with emphasis on recovering short-term performance while investing for long-term growth. Strategically, he highlighted three focus areas: professional video cameras, next-generation lithography, and metal additive processing.

CFO Takeshi Matsumoto said operating cash flow was ¥48.2 billion, the second straight year of growth, while free cash flow was minus ¥21.7 billion because of acquisition-related outlays and head office relocation costs. He also noted the ¥30 billion share buyback was completed and the repurchased shares were canceled at year-end. On capital returns, he said FY2025 dividend was reduced from ¥55 to ¥50 per share and FY2026 dividend guidance is also ¥50, while the company’s shareholder return ratio for the current fiscal year is projected at 54.8%.

There was no separate analyst Q&A in the transcript, but management did address tariff risk proactively. Matsumoto said U.S. tariffs are not included in FY2026 guidance and estimated a possible negative impact of about ¥10 billion on operating profit, pending negotiations and countermeasures. He also said precision equipment’s semiconductor lithography business will be streamlined to lower breakeven and that Nikon aims for a more stable profit structure from next fiscal year onward, with a longer-term recovery targeted around 2030.