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Toshiba Tec Reports Losses, Cites Cost of U.S. Reciprocal Tariffs, Lower Sales

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On November 10th, Toshiba Tec of Japan reported financial results for its second quarter and first half, with both ending on September 30, 2025.

Neither were good periods for the company, with Toshiba Tec reporting losses for both. It said it was unable to compensate for U.S. tariffs on copier/MFPs. Sales of Point-of-Sale (POS) systems and copier/MFPs were down, which also contributed to losses.

The impact of U.S tariffs was ¥7.9 billion ($51.29 million) for the first half, but Toshiba Tec expects this to decline to ¥3.1 billion ($20.12 million) in its second half.

Second Quarter

Second-quarter net sales were ¥136.3 billion ($884.95 million), down 8.72 percent year-over-year (YoY), and operating profit was ¥1.0 billion ($6.49 million), down 80.77 percent YoY.

First Half

For its first half (first six months of its fiscal year, or first two quarters), Toshiba Tec reported net revenue of ¥257.65 billion ($1.67 billion), down 10.9 percent YoY; an operating loss of ¥1.07 billion ($6.94 million); and a loss of ¥9.88 billion ($64.14 million). 

The company said sales of copier/MFPs in Japan declined due to a decrease in printing volume and customers refraining from purchasing.

Sales of MFPs for overseas markets decreased due to a decline in sales in all regions, mainly in the Americas and Europe as a result of U.S. tariffs. The first half also suffered compared to the first half a year earlier, because the latter saw a sales surge resulting from the recovery of product supply.

First-half net revenue for Toshiba Tec’s Workplace Solutions Business Group was ¥109.34 billion ($709.90 million), down 10 percent YoY, and operating profit was ¥1.26 billion ($8.81 million), down 84 percent YoY.

Extraordinary Loss

Toshiba Tec also reported that its Retail Solutions business may have incurred bad debts – money the company is owed from various accounts, but may not get paid. Consequently, it recorded a provision allowance of ¥6.83 billion ($44.07 million) for these doubtful accounts for its first and second quarters. However, since these provision allowances for doubtful accounts are eliminated in the company’s  consolidated financial statement, there is no impact on Toshiba Tec’s consolidated profit or loss.

Forecast

For its fiscal year that will end on March 31, 2026, Toshiba Tec is maintaining its forecast. It’s forecasting net revenue of ¥550.00 billion ($3.57 billion), down 4.7 percent YoY; operating profit of ¥12.00 billion ($77.91 million), down 40.7 percent YoY; and net income of 0 (zero).

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