Icom's operating profit plunges 59.3% in first half, full-year outlook cut

Icom Inc. reported a substantial decline in operating profit for the half-year ended September 30, 2025, falling by 59.3% year-over-year to JPY653 million. This came despite a modest 5.0% decrease in net sales, which reached JPY17,012 million for the period. Gross profit also saw an 8.8% reduction to JPY7,301 million. The company's profit attributable to owners of the parent decreased by 58.9% to JPY432 million.

The Americas region experienced an 8.9% sales decrease, impacted by inflation, reduced dealer buying, competitor supply, excess inventory, and tariffs. Sales in Asia & Oceania fell by 22.5% due to sluggish consumption and declining demand for CB radios in Australia. In contrast, Japan's sales increased by 13.4%, driven by hybrid radios and securing projects for fire departments and educational institutions.

Looking ahead, Icom has revised its full-year FY March 2026 earnings forecast downwards. Net sales are now projected at JPY36,000 million, a 10.0% decrease from the previously announced forecast. Operating profit is expected to be JPY2,550 million, a 36.3% reduction, and profit attributable to owners of the parent is forecasted at JPY1,980 million, a 42.3% decrease. The company plans to reduce its annual dividend to JPY60 per share, from JPY83 in FY March 2025, while maintaining a payout ratio of 43.5%.