Canon Misses Profit Projections in 2024 Despite Strong Camera Sales

Canon Inc. released its financial results for the fiscal year 2024, showing a decrease in operating profit and net income year-over-year but strong performance in the imaging sector. Canon’s 2024 performance also missed projections, although the company expects improvement in 2025.

Looking broadly at Canon’s 2024 financial results, the company had net sales of $28.5 billion last year, up 7.9% from 2023. However, operating profit fell 25.5% to $1.77 billion, while net income attributable to Canon Inc. dipped 39.5% from 2023, decreasing to just over $1 billion. Diluted net income attributable to shareholders declined 37.4% year-over-year.

Canon’s financial report notes that “the global economy continued to recover moderately,” with “solid” consumer spending in the United States and a stagnant economy in China, two of the most important markets for Canon. Canon characterizes the economic conditions in Europe and Japan as okay, picking up as 2024 progressed.

Canon breaks down sales by region in its complete report, showing that net sales increased in Japan, the Americas, Europe, and Asia and Oceania. However, the company does not break these regional sales into product categories.

“In the markets in which Canon operates, demand remained firm overall, despite the impact of economic stagnation in some regions,” Canon explains. The company adds that demand for cameras remained solid, primarily for mirrorless cameras.

While that may be true globally, Canon performed exceptionally well in the United States. The company today announced that it is the number one mirrorless camera brand, and that the Canon EOS R6 Mark II was the best-selling full-frame camera in the U.S. in 2024.

Looking specifically at imaging, total sales increased by 8.8% year-over-year, and income before taxes increased by 5.4% compared to 2023. Canon cites the new Canon EOS R1 and EOS R5 Mark II as important new models in its camera lineup, while adding that entry-level APS-C cameras like the EOS R50 and EOS R100 sold well.

This aligns with what PetaPixel has heard from an external source, who says Canon is selling many EOS R100 cameras. While Canon rarely discusses the sales performance of individual models in detail, it is worth noting that the R100 kit is only $599, and simply cannot be sold at super high margins.

Canon’s falling net income is not due to a lack of sales. The company’s net sales in 2024 were its highest ever. However, this was offset by numerous factors, including 16.9% higher operating expenses. Unfavorable currency exchange conditions are also not helping.

The company projects a 5% increase in consolidated net sales next year, which would set another new record for Canon if that comes to fruition. Although Canon expresses concerns about geopolitical issues in 2025, it expects ¥364 billion of net income in 2025, which is $2.36 billion — a considerable increase over the roughly $1 billion Canon earned in 2024.

Image credits: Featured image created using an asset licensed via Depositphotos.