Shimano's 2025 revenue rises, but market headwinds bite

Shimano Inc. reported modest sales growth but a steep decline in profit for the first nine months of 2025. Global bicycle market corrections and foreign exchange losses weighed on the results of the Japanese component manufacturer.

In Shimano’s bicycle components division — its core business — the Japanese company generated 266,243 million yen (€1.5 billion) in sales, up around 5% year-on-year. Meanwhile, the operating income level dropped 27% to 30,161 million yen, reflecting weaker margins and persistent inventory challenges.

European inventory troubles

In certain key markets, Shimano reported inventory levels remained relatively high. Though retail sales of completed bicycles were bolstered by stable weather conditions in the European market, Shimano reported market inventories were at a “somewhat high level.”

The same is true in the Chinese market, where cycling-for-sport retail sales have stagnated, leaving inventories high. In Shimano’s home market of Japan, soaring prices of completed bicycles caused retail sales to slump, but inventories were maintained at an “appropriate level.”

Shimano also reported slowing sales and weaker retail demand in Asia, Central and South American and Oceanian markets, but these trends were offset by an improving market inventory overall. Meanwhile, in the volatile North American market, “retail sales of completed bicycles remained weak due to an uncertain economic outlook, but market inventories maintained appropriate levels,” according to Shimano.

Shimano noted that, while the global economy remained firm during the first nine months of 2025, “Views on the economic outlook continued to be cautious due to changes in trade policies around the world and rising geopolitical risks caused by prolonged international conflicts.”

Overall outlook remains unchanged

Shimano’s Q3 2025 results show that foreign exchange fluctuations had one of the most significant effects on profitability this year. The Japanese company recorded 18,387 million yen (€104 million) in foreign exchange losses, roughly double the 9,037 million yen loss in the same period last year. Shimano attributes its overall valuation loss to foreign exchange and net income decreases.

With these factors in mind, Shimano is sticking to its forecast for the year, with a 2% revenue increase, a 29% decrease in operating income and a 60% decrease in net income compared to 2024.