Epson Q1 Revenue Declines on Strong Yen and US Tariffs

Epson Q1 Revenue Declines on Strong Yen and US Tariffs

Epson recently unveiled its financial results for the first quarter of fiscal 2025, reporting lower revenue affected primarily by a stronger yen and the added burden of U.S. tariffs.

Total revenue for the quarter fell 4.7% year-on-year to approximately JP¥320.9 billion (US$2.18 billion), while business profit dropped 15.9% to JP¥19.8 billion (US$136 million). The company noted that although it exceeded its internal targets due to exchange rate effects, performance was weaker compared to the same period last year, when the yen was significantly more depreciated.

Epson’s core printing solutions segment, which accounts for the majority of its business, posted a 3.8% revenue decline to JP¥227 billion (US$1.54 billion). Segment profit decreased 4.8% to JP¥28.2 billion (US$191 million).

Revenue in Office & Home Printing segment fell 7.3% to JP¥149.2 billion (US$1.01 billion). Although unit sales of high-capacity ink tank printers increased—especially in Western Europe and emerging markets—this was more than offset by exchange rate effects and the decline in ink cartridge printer sales as customers continued to shift toward more cost-efficient models, which also resulted in the decline in the revenue and sales of inkjet printer consumables. Despite the drop in revenue, business profit in office and home printing rose 7.2% to JP¥14 billion (US$96 million).

In Commercial & Industrial Printing segment, revenue rose 3.8% to JP¥77.7 billion (US$528 million), but profit declined 14.5% to JP¥14 billion (US$95 million). Finished product sales were stable, but printhead sales weakened due to cautious purchasing by Chinese printer manufacturers amid tariff-related uncertainties. The inclusion of Fiery, acquired in December 2024, contributed positively to both revenue and profit.

Epson maintained its full-year business profit forecast but raised its revenue projection to JP¥1.34 trillion (US$9.1 billion), up from the previous outlook of JP¥1.32 trillion, to reflect revised currency assumptions favoring a weaker yen. The company also adjust its estimate of tariff burden up by JP¥10 billion to JP¥27 billion (US$184 million). In response, Epson is implementing price increases in the U.S. and accelerating production transfers to the Philippines, Indonesia, and Japan.

Related:

• Epson Builds First Ink Tank Manufacturing Site in India
• Epson Unveils Full Line of EcoTank Cartridge-Free Printers
• Epson Launches Two New EcoTanks for Home & Business Use
• Epson Launches New AM-C550Z WorkForce Enterprise Printer
• Epson Marks 100 Million Sales of EcoTank with 4 New Launches

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