OSAKA, Japan (BRAIN) — As the global industry adjusted to market inventories and other realities, regional results varied widely for Shimano last year. The Japanese component giant’s full-year 2025 sales in its bike division totaled 355 billion yen ($2.3 billion), up 2.7% from 2024.
The company said sales of complete bikes in North America “remained weak due to economic uncertainty.” But it said North America bike inventories were at an appropriate level. In contrast, in Europe market demand was strong but inventories “remained at a somewhat high level.” And in China, Shimano said, retail sales were lackluster and inventories were high. In Shimano’s home market of Japan, the company said retail sales were sluggish due to “the soaring price of completed bicycles.”
Company-wide, Shimano’s sales for the year were 466 billion yen, up 3.4% from 2024. Operating income was down 20.6% and ordinary income was down by 52.3%.
Net income was 34.2 billion yen, down 65% from 2024’s 98.6 billion yen.
Exchange rates worked against Shimano in 2025, with the company recording losses due to currency exchanges at 19.6 billion yen, compared to a net positive gain of 12.2 billion yen in 2024, which was the biggest factor in the company’s reduced net operating income last year versus the year prior.
Fourth quarter rebound
In the final quarter of 2025, Shimano recorded a decrease in bike sales, but a slight increase in fishing revenue, plus cost-reduction efforts and other factors, reduced costs so that operating profit for the quarter was up 5% company-wide versus the fourth quarter in 2024.
Forecasts
Shimano is forecasting net sales of 467 billion yen in 2026, which would be a 0.2% increase over 2025. It expects operating income to decrease 9.1% while ordinary income increases by 19%. In the bicycle division, it’s forecasting a 9% decrease in operating profit, to 39 billion yen.
Recall costs
Shimano will now include costs from its global “free inspection” program for 11-speed Hollowtech II cranks (AKA, its crank recall) in its overall warranty line. It reversed 6.3 million yen of the provision it made last year for the program, but is setting aside a total of 7.5 billion yen ($48.2 million at current exchange rates) for warranty costs in 2026.
Share buyback
Shimano said it will acquire up to 2.95 million shares of its common stock for a maximum amount of 50 billion yen. The buyback program will run from Feb. 12, 2026 to Jan. 31, 2027. Shimano said it will enhance capital efficiency and improve shareholder returns.
