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Canon released its third-quarter financials today, and the results are generally good for Canon Corp. Canon did suffer an operating profit drop from a year ago’s third quarter, but as they noted that the 3rd quarter of 2024 was a bit of an outlier, as it was their highest quarter in history. So, a drop in operating profit was expected. But with the financials released just now, Canon posted a decline in operating profit of 10.3% and a decrease in net income of 7.4% for the quarter as compared to 2024’s 3rd quarter. For the entire year to date, this quarter has lowered Canon’s total year-on-year operating profit gains to a mere 1.9% gain and net income to .5%
I’m not sure they expected this much of a decline, but I doubt Canon is that worried. So much of this was completely outside of Canon’s control.
Canon Imaging 3rd Quarter
Imaging did well in terms of sales with a 5.9% increase in sales as compared to the 3rd quarter of 2024; however, like the rest of Canon, operating profit took a hit with a -12.6% year-on-year decline for the third quarter. Canon mentions the new R50 V has helped boost its sales.
As for the Imaging Group, we posted strong sales growth of entry-level interchangeable-lens cameras such as the EOS R50 and EOS R100, particularly in China and Asia. Sales of compact cameras also expanded thanks to a substantial increase in supply through increased production in response to strong demand. As a result, overall camera net sales increased 5%. For network cameras, we posted a net sales increase of 8% as sales remained solid. As a result, Imaging Group net sales increased by 5.9%.
If we drill into the dirty details of Imaging Group, we see that Canon shipped 730,000 cameras in the third quarter. This is a 1% increase from the 3rd quarter of 2024. This amounted to a 3.6% increase in net sales in the 3rd quarter.
Canon Imaging 2025 Outlook
Canon projects a 9.6% increase in net camera sales from 2024 and is on pace for a 6% increase to 3 million total units. The difference between 6% increase in units and a 9.6% in net sales seems to indicate that Canon is expecting the camera mix to move more upscale. Which is no surprise when the next camera to come out in 2024 is the R6 Mark III, which will be a $2800 camera.
Curiously, they mention that they are going to expand sales of full-frame cameras – a subtle hint that the R6 Mark III is coming soon.
As for the Imaging Group, starting with cameras, we aim to increase net sales by 9% for the full year. In the fourth quarter, in addition to entry-level interchangeable-lens digital cameras and compact digital cameras, where demand is strong, we will work to expand sales of full frame interchangeable-lens digital cameras during the year-end selling season.
I’m not sure they could drop any more of a hint that a new full-frame camera is forthcoming from Canon. The EOS R6 line is arguably Canon’s most popular full-frame camera, as it regularly resides at the top of the sales list for nearly the entire time it’s shipping. There’s no doubt that Canon expects demand to be strong for the EOS R6 Mark III.
Canon EOS R6 Mark III
It’s just a matter of reaching the shipment targets and not getting stuck in backorders. Hopefully, Canon has been building a ton of them to launch into the holiday season. It sounds like it.
Final Thoughts
So, is Canon doomed? No, but the hot mess globally certainly seems to have hurt corporate profits, which was, I think, expected in the financial markets. Canon probably isn’t doomed for another quarter at least.
The Imaging Group certainly has not slowed down, and the unit increases are quite good. So, while we always hope for more, Canon is certainly keeping pace with the overall market and maintaining its dominant position.
You can view all the PDF information from the Canon Global IR Library. You can also take a historical stroll as Canon keeps quite a few years accessible via the website.
But according to some FF enthusiasts nobody buys entry-level cameras anymore. 🙂