Shimano sets the bar for industry stabilisation

As the world’s leading bicycle component supplier, there is no better thermometer for the industry than Shimano. For fiscal year 2025, the Japanese manufacturer reported a 2.7% increase in net sales in bicycle components to 354,972 million yen (€192 million), while operating income decreased 20.9% to 42,841 million yen (€23 million). A slight glimmer of hope that an industry rebound is imminent.

In its annual financial report, Shimano states that adjustments to market inventories continue to affect market conditions. However, the differences across markets are significant. Robust sales in Europe compensated for weak demand in North America and Asia in 2025. Despite challenging market conditions, strong sales in Europe were unable to prevent a major decline in operating income overall.

Market differences

The medium-term trend shows Shimano's revenue is well above pre-covid level, but the operating income and net income to the owners are both substantially lower. In total Shimano generated a 29.9% sales hike from 147,936 million yen (€800 million) in 2024 to 192,214 million yen (€1.04 billion) last year. To the contrary, Shimano’s sales in China dropped by more than a third, from 100,975 million yen (€546 million) in 2025 to 62,679 million yen (€339 million) last year.

The United States market was slightly up by 3.2% to 20,157 million yen (€109 million) last year. Although Shimano refers to the North American market as 'weak,' total revenue still increased, despite the implementation of the 15% Trump tariff.

Firm growth of the global economy

Shimano writes that policy trends around the world and developments in geopolitical risks amid global instability can influence the bicycle industry. Still, the Japanese component manufacturer expects a firm growth of the global economy. Regarding the risks, they specifically mention the increasingly unpredictable situation in the US, where the sense of uncertainty about the economic outlook may heighten, and there are concerns about the impact on the previously strong economy. In Europe, Shimano expects a moderate economic recovery, supported by price stability and a rebound in personal consumption. In China, they expect the economy to remain weak, with the recession in the real estate sector continuing and unemployment remaining high.