Fanuc Ltd. declined to provide an earnings forecast for fiscal 2025 as uncertainty around U.S. tariffs complicates capital spending projections and exchange rate predictions.
President Kenji Yamaguchi cited a lack of confidence in the company’s forecast models during an earnings briefing Wednesday. The Japanese industrial robot maker, a bellwether for global manufacturing investment, faces conflicting scenarios where customers might delay orders until tariff impacts become clearer or potentially increase automation investments if production shifts to the U.S.
Currency fluctuations present another challenge. The yen has strengthened from an average of ¥152.28 to the dollar in the fiscal year ended March to around ¥141 currently, potentially pressuring profits for the export-dependent manufacturer.
Despite these headwinds, Fanuc reported its highest quarterly orders in over two years, with January-March bookings climbing 22% to ¥211.4 billion ($1.48 billion). Robot segment orders rose 28% to ¥90.9 billion, while factory automation orders increased 13% to ¥50.7 billion, buoyed by EV-related demand in China.
Full-year net profit grew 11% to ¥147.5 billion on largely flat sales of ¥797.1 billion. The company raised its annual dividend and announced a ¥50 billion share buyback.
Separately, Yoshiharu Inaba, who became president in 2003 and drove significant growth, will step down as chairman following the June shareholders meeting.
