Kyocera Experiences Sharp Profit Drop in Q3 FY2025

Kyocera Experiences Sharp Profit Drop in Q3 FY2025

Kyocera has reported a significant drop in profits for the first nine months of its fiscal year, despite relatively stable revenue of JPY 1.49 trillion (USD 10.2 billion). The decline was primarily driven by weak demand in key markets, increased costs, and substantial one-time impairments. Operating profit plummeted 84.6% year-over-year to JPY 12.3 billion (USD 84 million), while profit attributable to owners of the parent company fell nearly 80% to JPY 18.3 billion (USD 125 million).

The company’s Core Components Business, particularly the Organic Packages and Boards segment, was a major drag on performance. Despite the overall profit decline, the Document Solutions Unit provided some relief, with an 8% sales increase contributing to improved segment profitability. This growth, along with higher sales in the Communications Unit, helped offset declines in other areas.

In response to ongoing market challenges, Kyocera has revised its full-year earnings forecast, lowering its sales projection by JPY 20 billion (USD 137 million) to JPY 2 trillion (USD 13.7 billion). The company also cut its operating profit forecast by JPY 47 billion (USD 321 million) to JPY 21 billion (USD 144 million) and its profit attributable to shareholders by JPY 51 billion (USD 348 million) to JPY 20 billion (USD 137 million).

Kyocera is implementing a series of structural reforms to restore profitability, including reduced capital expenditures and a strategic focus on high-margin products. The company now expects capital investments to total JPY 150 billion (USD 1 billion) for the fiscal year, JPY 10 billion less than previously forecast. Research and development expenses, however, remain unchanged at JPY 120 billion (USD 829 million), with continued focus on telecommunications infrastructure and semiconductor-related components.

Looking ahead, Kyocera aims to stabilize its financial performance through efficiency improvements and a shift toward more profitable business segments. The company maintains that its restructuring efforts will begin to yield results by the 2026 fiscal year.

Related:

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• Kyocera Takes Lead in Upcycling Printer Parts
• Kyocera Reports Robust Printing Unit Performance in Q1 2025
• Kyocera Launches New Ecosys A4 Printers

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