Terumo Corporation

Terumo said Q3 year-to-date revenue reached a record JPY 831.6 billion. Operating profit was JPY 144.9 billion and adjusted operating profit was JPY 173.5 billion, both record highs on a Q3 year-to-date basis. On a local-currency basis, North America sales grew 9% excluding FX, and the Cardiac and Vascular Company posted 8% revenue growth while its profit margin improved to 26%. Management said tariff impact was a negative JPY 4.2 billion in Q3 and pricing contributed JPY 3.5 billion, partially offsetting it. OrganOx contributed Q3 revenue of JPY 2.9 billion and adjusted operating profit of JPY 0.5 billion after consolidation from November and December, while the Leverkusen plant recorded a JPY 1.6 billion loss in Q3. For the full year, management said the business is progressing toward FY26 GS26 goals, highlighted about JPY 3 billion in annualized cost savings from overseas workforce optimization starting next fiscal year, and noted about JPY 1 billion of one-time restructuring cost in Q4.

The lead executive framed the quarter as strong underlying execution, saying the business is steadily progressing toward GS26 even after acquisition-related and restructuring costs. Management emphasized that pricing, cost discipline, and portfolio actions are being used to improve profitability, and said the company is willing to absorb short-term negative costs now rather than carry them into FY26. Tone-wise, the message was confident but pragmatic, with repeated emphasis on disciplined execution and clearer communication with investors.

Hagimoto said the quarter exceeded guidance and that record revenue and profit were driven by continued demand expansion, especially in North America. He highlighted the tariff drag of JPY 4.2 billion in Q3 and said pricing added JPY 3.5 billion, while SG&A was largely in line with assumptions and R&D was slightly lower due to prioritization. He also noted the new consolidation of the Leverkusen plant and OrganOx, with Leverkusen still in start-up / transfer mode and OrganOx showing Q3 revenue of JPY 2.9 billion and adjusted operating profit of JPY 0.5 billion. He added that overseas workforce optimization should generate about JPY 3 billion of annualized savings from next fiscal year, while some Q4 one-time restructuring costs are expected.

Analysts focused on tariffs, one-time costs, OrganOx amortization, Rika production adjustments, and whether CSL changes could affect plasma demand. Management said the announced amortization and depreciation for OrganOx were lower than originally expected after external revaluation, and explained that inventory step-up affects P&L but not cash flow. On Rika, management denied any delay in deployment, saying production adjustments were modest because manufacturing had been efficiently utilized, and said next year the impact should remain limited. On CSL, they said they do not expect a significant change in projections, though some future volume discussions could occur.