Toshiba Tec Reports Q1 Loss Amid Tariff Impact

Toshiba Tec Reports Q1 Loss Amid Tariff Impact

Toshiba Tec Corporation just released its financial results for the first quarter of fiscal year 2025, reporting an operating loss and lower net sales.

For Q1, the company recorded an operating loss of JP￥2,118 million (US$14.35 million) in the first quarter of fiscal year 2025, reversing from an operating profit of JP￥4,276 million (US$28.97 million) a year earlier, as U.S. tariff measures, foreign exchange pressures, and a sharp drop in overseas demand weighed on performance.

The company’s consolidated net sales for the three months ended June 30 fell 13% year-on-year to JP￥121,367 million (US$822.14 million), primarily due to decreased sales of point-of-sale (POS) systems and multifunction peripherals (MFPs) in overseas markets. Toshiba Tec cited weakening market conditions in the U.S., ongoing price increases, and geopolitical risks as key factors behind the decline.

In its Workplace Solutions Business Group, which includes MFPs and auto ID systems for overseas markets, net sales dropped 14% year-on-year to JP￥52,053 million (US$352.53 million). Operating profit in this segment plunged 97% to just JP￥112 million (US$0.76 million), down by 97% compared to the same quarter last year. The company attributed the steep decline to falling sales across all regions, especially in the Americas and Europe, combined with the burden of tariff-related cost increases and delayed implementation of price adjustments.

The previous fiscal year’s high profitability in this business group was driven by a temporary surge in factory utilization and production volume as the company cleared backorders—factors that were not replicated in the current quarter. Furthermore, the July 2024 transfer of development and manufacturing operations for MFPs and auto ID systems to ETRIA CO., LTD. also impacted performance.

Despite the weak start to the year, Toshiba Tec expects profitability to recover in the second half of fiscal 2025. Deferred sales in the overseas retail business began to materialize in the second quarter, and the Workplace Solutions segment has started to benefit from price revisions and production site optimizations.

The company forecasts a full-year operating profit of JP￥12.0 billion (US$81.36 million), reflecting an estimated JP￥11.0 billion (US$74.60 million) impact from U.S. tariffs. Full-year net sales are projected to decline to JP￥550.0 billion (US$3.73 billion), down from JP￥577.0 billion (US$3.92 billion) last year.

Related:

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• Toshiba Reports Steady Growth in Q3

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