Toshiba Tec slumps to Q1 loss as US tariffs and weak demand hit overseas sales

Aug 7, 2025

The Japanese retail and workplace solutions provider posts a ¥5 billion loss and warns of ongoing pressure despite full-year sales forecast of ¥550 billion ($3.79 billion /€3.47 billion).

Toshiba Tec Corporation has posted a sharp first-quarter loss amid falling sales, the impact of US tariffs, and sluggish demand in overseas markets. The company recorded a loss attributable to owners of the parent of ¥4.99 billion ($34.4 million /€31.4 million) for the three months to 30 June 2025, compared with a profit of ¥3.44 billion in the same period last year.

Net sales fell 13.4% year-on-year to ¥121.4 billion ($837 million /€764 million), as overseas customers delayed investment and foreign exchange rates turned against the company. Operating profit swung from a ¥4.3 billion surplus to a loss of ¥2.1 billion ($14.5 million /€13.2 million), reflecting higher costs and a failure to fully pass on price increases linked to tariffs.

“Net profit remains under pressure,” the company said. It acknowledged that the effects of product price revisions had not yet materialised and said it was targeting improved profitability in the second half of the fiscal year.

The group attributed the downturn to a combination of tariff-related costs, estimated at ¥11 billion for the full year, and declining demand conditions in key markets. The company anticipates recovering approximately ¥7 billion of the tariff impact through price adjustments and production modifications but cautioned that the full-year operating profit would decline by 40.7% to ¥12 billion ($82.8 million / €75.5 million).

The Retail Solutions Business Group, which includes POS systems and MFPs for the Japanese market, saw sales fall 14% to ¥70.7 billion ($488 million /€446 million). Overseas POS hardware sales were notably weak, particularly in the Americas, where investment delays and exchange rate headwinds weighed heavily. The unit posted a ¥2.2 billion loss, compared with a marginal profit a year ago.

The Workplace Solutions Business Group, which handles MFPs and Auto-ID systems for international markets, also saw revenues drop 14% to ¥52.1 billion ($359 million /€329 million). Segment profit collapsed from ¥4.1 billion to just ¥112 million.

Despite the poor start, Toshiba Tec has now confirmed its full-year guidance, projecting flat net income, with a target of break-even profit. Sales are expected to reach ¥550 billion ($3.79 billion /€3.47 billion), down 4.7% year-on-year. No dividend forecast was given.

On a positive note, the company reported that sales of its ELERA platform – used in retail automation and fraud prevention – rose 10% overseas, and the number of large US retailers using its POS systems increased. “Deferred sales are starting to materialise,” the company said, as it eyes a recovery in Q2.

Categories: City News

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