Sharp Corporation reported its fourth consecutive quarter of net profits in calendar Q4 2025 but continued to report losses in its display business, and the company announced it will shut down its Kameyama No. 2 fab later this year.

Sharp reported a calendar Q4 2025 net profit of JPY 22.1 billion ($144 million) on revenues of JPY 467 billion ($3.0 billion). Revenues fell short of consensus expectations of JPY 486 billion but net income exceeded consensus expectations of JPY 10.8 billion. Revenues decreased 6% QoQ and 18% YoY, and the net profit increased 13% QoQ and compared to a loss of JPY 26.5 billion in Q4 2024.

Sharp's operating profit of JPY 12.0 billion ($78 million) in Q4 2025 was down 12% QoQ and 40% YoY. Sharp reported a net non-operating profit of JPY 14.6 billion pre-tax, with the biggest portion a gain on the sale of non-current assets of JPY 14.3 billion, more than offsetting interest expenses of JPY 2.1 billion.

Sharp's Display Devices business segment recorded an operating loss of JPY 4.8 billion (-$31 million) in Q4 2025, compared to a loss of JPY 6.2 billion in Q3 2025 and a loss of JPY 4.8 billion in Q4 2024. Revenues for Display Devices were JPY 103.6 billion ($672 million), a decrease of 3% QoQ and 23% YoY in $ terms.

The Display Device operating margin was -4.6%, an improvement compared to -6.0% in Q3 2025 but worse compared to -3.6% in Q4 2024. For Display Devices, Q4 2025 represented the fourteenth consecutive quarter of operating losses, which have totaled JPY 205 billion during that time.

Display Device revenues decreased for auto, PC and tablet applications. Sales for smartphones have been phased out. Operating profits were worse by reduced volume, which more than overcame cost reduction.

 

 Sharp Display Devices Quarterly Income Statement Highlights

On its balance sheet, Sharp's debt was down 12% QoQ and 20% YoY in $ terms. Equity increased 10% QoQ and 223% YoY. Sharp's debt/equity decreased QoQ from 369% to 296% and net debt/equity decreased from 180% to 121%.

Sharp reported positive operating cash flow of JPY 3.7 billion ($24 million) in Q4 2025 but negative free cash flow of JPY 2.6 billion ($17 million). Sharp reported capital expenditures of JPY 2.1 billion ($14 million) in display.

Sharp held steady its forecast for fiscal 2025 (ending March 31, 2026), first given in May 2025 and revised in August after its Q2 2025 results. The forecast assumes an exchange rate of JPY 150/$.

• Net sales are expected to reach JPY 1,870 billion (unchanged from August, originally JPY 1,850 billion), a decrease of 13% YoY.
• Operating profit is expected to be JPY 45 billion (was JPY 30 billion in August, originally JPY 20 billion), an increase of 10% YoY.
• Net profit is expected to be JPY 53 billion (was JPY 32 billion in August, originally JPY 10 billion), down 11% YoY.
• Capex is expected to be JPY 35 billion (revised down from JPY 40 billion), an increase of 17% YoY, of which JPY 11.5 billion (was JPY 12.5 billion) will be display capex.

Sharp reported that its MOU with Hon Hai for the transfer of the Kameyama No. 2 plant fell through, and the company has decided to cease production in August 2026. Sharp will take a restructuring charge of JPY 10.0 billion for Kameyama No. 2. Sharp plans to sell Kameyama No. 2 after ceasing production.

According to Counterpoint Research’s Display Fab Data with Input Capacity, Kameyama No. 2 has 45,000 sheets per month of Gen 8 capacity, with a substrate size of 2160 mm x 2460 mm. It was the first Gen 8 in the flat panel display industry, but no other FPD maker copied Sharp’s configuration, instead choosing to go with the larger Gen 8.5 size (2200 mm x 2500 mm). The current capacity includes 18,000 per month for a-Si and 27,000 per month of oxide TFT and is oriented toward IT and automotive displays.

Sharp reported that the technology transfer from Sakai Display Products to the LCD plant of a major company in India fell through, and Sharp decided to discontinue the business. Sharp will take a restructuring charge of JPY 2.2 billion for Sakai Display Products.

Final comments

After the shutdown of Kameyama No. 2, Sharp will no longer have any large-gen fab. Sharp’s remaining capacity will be two Gen 6 fabs – Kameyama No. 1 and the former JDI fab in Hakusan, both configured for LTPS backplanes. While Sharp is associated with the SIO Gen 10.5 fab in Guangzhou, China, that fab is not consolidated into Sharp’s corporate business. The failure of the India technology transfer suggests that Sharp will be dissolving the technology team that built the original Sakai Gen 10 fab and the Guangzhou fab. It may mark the end of Sharp as a large-screen FPD maker.