Shimano, Inc., the Japan-based maker of bike components and fishing tackle, reported its 2025 full-year results, suggesting that the global economy followed a gradual recovery trend during the year. Still, the company said its views on the economic outlook remain cautious due to trade policies worldwide and rising geopolitical risks, including prolonged international conflicts, which have created uncertainty in the current economic conditions. The company said demand for bicycles and fishing tackle remained weak in this environment.

Fiscal full year 2025 net sales increased 3.4 percent year-over-year (y/y) to ¥466,243 million. Operating income decreased 20.6 percent y/y to ¥51,677 million, ordinary income decreased 52.3 percent y/y to ¥47,029 million, and net income attributable to owners of parent decreased 55.5 percent y/y to ¥33,991 million in 2025.

In Europe, stable employment, income, and prices supported personal consumption and a moderate recovery.

In the U.S., the once-strong economy stalled as consumer sentiment cooled amid rising tariffs and a slowing labor market.

In China, the economy remained weak due to a prolonged real estate recession and a slump in personal consumption. In Japan, surges in food prices subsided, and the economy maintained a moderate recovery, supported partly by an improvement in the income environment and continuation of monetary easing.

Reportable Segment Overview


Bicycle Components
While the strong interest in bicycles was said to continue as a long-term trend, the company said adjustments to market inventories made gradual progress overall, even as conditions were mixed by region.

Segment net sales from the segment increased 2.7 percent y/y to ¥354,972 million in 2025, and operating income decreased 20.9 percent y/y to ¥42,841 million.

  • In the European market, retail sales of completed bicycles were robust, supported by stable weather, but market inventories remained somewhat high.
  • In the North American market, while retail sales of completed bicycles were said to remain weak due to economic uncertainty, market inventories reportedly maintained “appropriate” levels.
  • In the Asian and Central and South American markets, although retail sales of completed bicycles remained somewhat weak due to weak personal consumption, market inventories overall remained at an appropriate level.
  • In the Chinese market, while interest in cycling as a sport remained firm, demand for road bikes showed signs of easing, retail sales were lackluster, and market inventories remained high. In the Oceanian market, retail sales were initially weak but subsequently remained strong, and market inventories also remained at appropriate levels.
  • In the Japanese market, retail sales remained sluggish due to the soaring prices of completed bicycles, but market inventories remained at appropriate levels. Under these market conditions, the Shimano Group’s products were well received, including XTR, the flagship model in our renewed components for mountain bikes, as well as the Deore XT and Deore series, and Q’Auto, which features a self-powered automatic gear-shifting function.

Fishing Tackle
The interest in fishing tackle continued, and the company said sales “remained firm,” mainly overseas, and market inventories improved to an “appropriate level” overall.  Net sales from the segment increased 5.6 percent y/y to ¥110,832 million, and operating income decreased 18.9 percent y/y to ¥8,865 million.

  • In the Japanese market, although adjustments to market inventories progressed, sales remained weak due to a decline in personal consumption, driven by price hikes and extreme heat.
  • In the North American market, sales were said to have remained strong, thanks to “favorable offshore fishing conditions” mainly on the West Coast and in the Northeast throughout the year, and market inventories remained at appropriate levels.
  • In the European market, sales were strong thanks to stable weather conditions, and market inventories remained at an appropriate level.
  • In the Asian market, sales were strong, backed by demand for high-priced reels, mainly in China, and adjustments to market inventories made progress.
  • In the Australian market, sales were reported to be strong, and market inventories remained at an appropriate level, supported by stable weather and favorable offshore fishing conditions. Under these market conditions, the new Stella SW spinning reel and Antares baitcasting reels were said to be well received. In addition, order-taking was said to be brisk for Poison Ultima, reportedly the “pinnacle” of the Poison bass rod series.

Others
Net sales from this segment decreased 2.3 percent y/y to ¥439 million and an operating loss of ¥29 million was recorded, following an operating loss of ¥1 million for the prior year.

 Overview of Financial Position for Fiscal 2025
Total Assets as of the end of fiscal year 2025 amounted to ¥938,250 million. This was a decrease of ¥20,703 million compared with the prior fiscal year-end. The principal factors included an increase of ¥16,779 million in buildings and structures, an increase of ¥9,985 million in merchandise and finished goods, an increase of ¥4,667 million in software, an increase of ¥3,456 million in investment securities, an increase of ¥2,650 million in net defined benefit asset, a decrease of ¥56,721 million in cash and time deposits, and a decrease of ¥3,763 million in deferred income taxes.

Total Liabilities amounted to ¥68,748 million at year-end, a decrease of ¥6,591 million from the previous fiscal year-end. The principal factors included an increase of ¥2,143 million in provision for product warranties under current liabilities, an increase of ¥783 million in others under current liabilities, an increase of ¥663 million in accounts payable trade, a decrease of ¥9,595 million in provision for product warranties under long-term liabilities, and a decrease of ¥641 million in income taxes payable.

Net Assets amounted to ¥869,501 million at year-end, a decrease of ¥14,111 million from the prior fiscal year-end. The principal factors included an increase of ¥27,737 million in foreign currency translation adjustments, an increase of ¥3,005 million in unrealized gain (loss) on other securities, and a decrease of ¥44,652 million in retained earnings. As a result, the shareholders’ equity ratio was 92.5 percent, compared with 92.0 percent at the previous fiscal year-end, and net assets per share were ¥10,041.66, compared with ¥9,907.24 at the previous fiscal year-end.

Overview of Cash Flows for Fiscal 2025
Net cash provided by operating activities amounted to ¥63,780 million, compared with ¥87,032 million provided for the previous year. The main cash inflows included income before income taxes of ¥56,358 million, depreciation and amortization of ¥27,208 million, interest and dividend income of ¥19,001 million, and foreign exchange losses (gains) of ¥18,538 million.

The main cash outflows included income taxes paid of ¥20,425 million, interest and dividend income of ¥17,849 million, provision for product warranties of ¥7,449 million, and inventories of ¥6,968 million.

Net cash used in investing activities amounted to 40,675 million, compared with ¥35,810 million used for the previous year. The main cash outflows included acquisition of property, plant and equipment amounting to ¥35,519 million and acquisition of intangible assets amounting to ¥10,247 million.

Net cash used in financing activities amounted to ¥80,319 million, compared with ¥49,476 million used for the previous year. The main cash outflows included the acquisition of treasury stock for ¥50,006 million and cash dividends to shareholders for ¥28,609 million. As a result, cash and cash equivalents at the end of the year were ¥472,800 million.

Forecast for the Future
Shimano said that although the global economy is expected to grow firmly in 2026, it may be swayed by factors such as global policy trends and developments in geopolitical risks amid global instability.

  • In Europe, the economy is expected to follow a moderate recovery trend, supported by price stability and a rebound in personal consumption.
  • In the U.S., as the international situation becomes increasingly unpredictable, uncertainty about the economic outlook may intensify, and there are concerns about its impact on the previously strong economy.
  • In China, the economy is expected to remain weak amid continued weakness in the real estate sector and a high unemployment rate.
  • In Japan, a moderate economic recovery is expected, thanks to improvements in the employment and income environment and the government’s social policies supporting domestic demand, but the economy may be affected by the direction of the economic policies.

In these circumstances, the company said it emphasizes not only striving to offer high-grade, attractive and “captivating products” as a “development-oriented digital manufacturing company” of Japan origin by reflecting customers’ viewpoints, while closely monitoring trends in demand for bicycles and fishing tackle, but also moving forward step by step as a “value creating company” that continues to create a shared value between corporations and society. Taking a long-term perspective, we will endeavor to further enhance management efficiency and strive for sustainable corporate growth by keeping in mind the creation of a new cycling and fishing culture.

Forecasted Consolidated Business Performance for Fiscal 2026

Sales and Operating Income Forecasts by Segment

Dividend Policy and Cash Dividends for Fiscal 2025 and Fiscal 2026
The company said it considers the return of earnings to shareholders to be one of the most important issues for management. The company’s basic policy is to continue providing stable returns reflecting overall business performance and strategy. Pursuant to this policy, the company said it will strive to improve shareholder returns, aiming to achieve a total return ratio of at least 50 percent by continuing to enhance dividends and engaging in flexible, ongoing acquisitions of treasury stock.

In accordance with this policy, the company said it intends to pay year-end cash dividends of ¥169.50 per share, an increase of ¥15 per share from the prior year’s year-end cash dividends. As a result, cash dividends for fiscal year 2025 will amount to ¥339 per share, an increase of ¥30 per share from the prior year.

For fiscal 2026, the company proposes cash dividends of ¥363 per share, with interim and year-end dividends each set at ¥181.50.

Image courtesy Shimano