Terumo has cut its forecast for reported operating profit by 25.6%, but the recall behind the cut costs far less than the headline suggests. The medical-device maker now expects operating profit of ¥119.0bn for the year to March 2027, down from ¥160.0bn in the forecast it published on 8 October 2026. Adjusted operating profit slips only 1.1%, to ¥271.5bn from ¥274.5bn.
Two problems, one small and one large
Terumo said the revenue and adjusted operating profit cuts reflect a voluntary recall and shipment halt of some products in its Aortic business, plus temporary supply constraints in its Neuro business. Revenue is now forecast at ¥1.2195tn, down 0.8% from ¥1.2295tn.
Of the adjusted operating profit reduction, Terumo puts the effect of lower sales and other factors from the Aortic recall and shipment halt at about ¥3bn. The company gives no separate figure for the Neuro supply constraints.
Where the rest of the cut comes from
Reported operating profit takes a much bigger hit because Terumo has also factored in about ¥38bn for risks to the value of Aortic assets and similar items. The company based this on the effect the recall and shipment halt may have on the business's future profitability. Together with the ¥3bn operating effect, Terumo currently expects a total impact of about ¥41bn, which matches the ¥41.0bn reduction in the operating profit forecast.
Profit attributable to owners of the parent is now forecast at ¥87.5bn, down 27.1% from ¥120.0bn. Basic earnings per share fall to ¥59.31 from ¥81.35.
| Measure | Previous forecast | Revised forecast | Change |
|---|---|---|---|
| Revenue | ¥1.2295tn | ¥1.2195tn | -0.8% |
| Adjusted operating profit | ¥274.5bn | ¥271.5bn | -1.1% |
| Operating profit | ¥160.0bn | ¥119.0bn | -25.6% |
| Profit attributable to owners of the parent | ¥120.0bn | ¥87.5bn | -27.1% |
| Basic earnings per share | ¥81.35 | ¥59.31 | n/a |
Not a final number
Terumo said the asset-value effect is not yet fixed. It plans to review its business policy and business plan for the Aortic business, then examine asset values in light of that review. The notice does not say when that review will finish, which assets are involved, or how the recall arose. It also does not describe the affected products.
The forecast figures are also a company projection, not realised results. Terumo's note says forecasts rest on limited information available now and carry risks and uncertainties, including economic conditions, exchange rates and competition.
Against last year
For the year to March 2026, Terumo reported revenue of ¥1.13tn, adjusted operating profit of ¥219.4bn, operating profit of ¥176.3bn and profit attributable to owners of the parent of ¥135.9bn. The revised forecast has adjusted operating profit above that level at ¥271.5bn, while operating profit at ¥119.0bn and net profit at ¥87.5bn are both below it.
The distance between the adjusted and reported lines is therefore the figure to track. If Terumo's review of the Aortic business changes the asset-value estimate, reported operating profit and net profit would move with it, while the ¥3bn adjusted effect is a separate and smaller item.