EIZO Corporation

Business Details

EIZO Corporation operates as a "Visual Technology Company" centered on visual technology, providing high-quality, highly reliable visual equipment and related products for five markets: B&P (Business & Plus), Healthcare, Creative Work, V&S (Vertical & Specific), and Amusement. The company is composed of EIZO Corporation and 17 consolidated subsidiaries (5 domestic, 12 overseas), and is accelerating the enhancement of visual hardware and the expansion of EIZO Visual Systems (EVS).

Recent Overview

B&P was sluggish due to stagnation in Europe and operating profit declined, but net profit rose sharply due to gains on sale of cross-shareholdings

In FY2026 (ending March 2026), net sales were flat at ¥81,308 million (up 1.0% year on year). Sluggish sales in the B&P market due to economic stagnation in Europe (down 9.2% year on year), approximately ¥400 million in inventory valuation losses on old products, and increased SG&A expenses (up 4.6% year on year) due to wage increases, new technology building costs, and expansion of sales in India and the Middle East all combined to cause a significant decline in operating profit to ¥2,365 million (down 36.2% year on year). On the other hand, the company recorded a gain on sale of investment securities of ¥7,999 million from the sale of cross-shareholdings and shares held for pure investment purposes, resulting in profit attributable to owners of parent of ¥7,323 million (up 76.5% year on year). In Europe, the company recorded ¥441 million in business structure improvement expenses and ¥497 million in fixed asset impairment losses as extraordinary losses related to the restructuring of its sales organization and the closure of some development and production sites. As a subsequent event, on May 12, 2026, the company resolved to acquire treasury shares up to a maximum of 1,500,000 shares and ¥4,000 million. The company paid an annual dividend of ¥110, marking 13 consecutive years of dividend increases, and plans ¥115 for the next fiscal year.

Key Products

Growth Drivers

• A recovery trend in sales in the healthcare market in Europe, North America, China, the Middle East, and India (up 7.2% year on year in FY2026, ending March 2026, with a planned 2.0% increase in the next fiscal year)
• A plan for significant growth in the V&S market driven by an accumulation of orders (a planned 21.1% increase to ¥15,200 million in the next fiscal year), led by air traffic control, defense, marine, and surveillance applications
• Expansion of the system solutions business through the accelerated deployment of EIZO Visual Systems (EVS) (addressing demand for maintenance and management of social infrastructure for surveillance applications)
• Business expansion in the India and Middle East markets (EIZO Middle East Ltd. has been established) and expansion of local sales activities
• Recording of extraordinary gains through continued sale of cross-shareholdings and shares held for pure investment purposes (a gain on sale of investment securities of approximately ¥4,400 million is planned for the next fiscal year)
• Expansion of market share in the healthcare market in North America and solid orders for air traffic control applications (a planned 33.4% increase in North America sales to ¥12,400 million in the next fiscal year)

Risks

• Prolonged slump in B&P monitor sales in Europe's major markets (particularly Germany) (a flat trend is also expected in the next fiscal year)
• Continued risk of inventory valuation losses due to excess inventory of old B&P models (approximately ¥400 million was recorded in FY2026, ending March 2026)
• Increased SG&A expenses due to wage increases, expanded R&D investment, expansion of business in India and the Middle East, etc. (a planned 3.7% year-on-year increase to ¥24,400 million in the next fiscal year)
• Risk of additional costs arising from the restructuring of the sales organization and reorganization of development and production sites in Europe
• Foreign exchange risk (a ¥1 depreciation of the yen increases profit by ¥100 million for the euro and decreases profit by ¥80 million for the U.S. dollar; earnings forecast assumptions: 1 euro = ¥175, 1 U.S. dollar = ¥160)
• Continued contraction of the amusement market due to declines in the gaming population and number of stores
• Uncertainty over the global economic outlook due to geopolitical risks such as U.S. tariff policy and the situation in the Middle East
• Decreased capital investment demand due to the deteriorating management environment of medical institutions in Japan (weakness in the domestic healthcare market)