FY25 earnings: JLL produced annual record earnings in FY25 with full-year OP of ¥12,606mil (+2.3% YoY) on sales of ¥59,187mil (+4.6% YoY), landing largely in line with the firm’s guidance of OP of ¥12,900mil (+4.7% YoY) on sales of ¥59,300mil (+4.8% YoY). The low single-digit levels of earnings growth were primarily due to a couple of external negative factors, such as (1) sales of some of JLL’s products were affected by competition with Pulse Field Ablation [PFA] devices, and (2) the YoY decline in sale prices of devices in April and May 2025 compared to pre-revision prices. The revised reimbursement prices were applied from June 2024. FY26 earnings guidance: JLL aims to renew a historical record in sales but anticipates a YoY decline in OP, given upfront investment for growth. The firm guides for FY26 1H OP of ¥4,500mil (-32.0% YoY) on sales of ¥30,700mil (+4.8% YoY) and for the full-year, OP of ¥10,700mil (-15.1% YoY) on sales of ¥63,200mil (+¥4,013mil /+6.8% YoY), comprising a +¥3,295mil / +6.0% YoY rise in existing core products sales and +¥757mil / +17.5% YoY expansion in new products sales. Despite this steady pace at the top line, FY26 OP will likely see further YoY declines due to (1) accelerated growth investments, (2) increase in overheads due to inflation and (3) HQ-related moving costs.