Japanese Listed Firms Log Record Net Profits in FY 2025

Tokyo, May 24 (Jiji Press)–Combined net profits at Japanese listed companies in fiscal 2025 rose 9.0 pct from the previous year to a record 54,713.2 billion yen, according to SMBC Nikko Securities Inc. The figure for the year ended in March hit a record high for the fifth consecutive year, thanks to rosy earnings of semiconductor- and data center-related companies amid strong demand for artificial intelligence, as well as strong earnings of banks on the back of higher interest rates. SMBC Nikko Securities compiled earnings data for 1,116 Tokyo Stock Exchange-listed companies in the TOPIX stock price index that close their books in March, with 99.5 pct of them having disclosed their fiscal 2025 earnings as of Thursday. While auto companies and other transportation equipment firms suffered sharp profit drops from the impact of a U.S. high tariff policy, profits were boosted in a wide range of industry sectors, such as electric appliances, telecommunications and nonferrous metals, supported by growing AI demand. Combined net profits for the current fiscal year through March 2027 are forecast to increase 8.3 pct from the previous year to 63,328 billion yen. As the Middle East situation remains tense due to prolonged military operations against Iran by the United States and Israel, AI- and chip-related companies and banks, which are less affected by higher oil prices, are expected to continue enjoying solid performance. “As the trend of profit growth is expected to continue this fiscal year, listed companies are likely to log double-digit profit growth,” Hikaru Yasuda, chief equity strategist at SMBC Nikko Securities, said. While expecting the Iran situation to settle down by the middle of this year, Yasuda said that “a decrease in demand due to soaring crude oil prices would pose a risk to companies’ earnings.” END [Copyright The Jiji Press, Ltd.]