SCREEN Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
👉 Clear answers to your questions
Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = ¥2.48t | Revenue (TTM) = ¥591.74b
Market Cap = ¥2.48t | Estimated Revenue = ¥755.33b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = ¥2.27t | Revenue (TTM) = ¥591.74b
Enterprise Value = ¥2.27t | Forward Revenue = ¥755.33b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
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SCREEN Stock Analysis
Analyst Opinions
21 Analysts have issued a SCREEN forecast:
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SCREEN Events
Past Events
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MAY
13
Q4 2026 Earnings Call
5 months ago
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JAN
30
Q3 2026 Earnings Call
8 months ago
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OCT
31
Q2 2026 Earnings Call
11 months ago
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StocksGuide Free
SCREEN — Q4 2026 Earnings Call
1. Management Discussion
The time has come. So let us start the briefing on SCREEN Holdings consolidated business results for fiscal year ending in March 2026. Thank you very much for your participation despite your busy schedule.
I am the President of -- for today. [indiscernible] from the Investor Relations, Communications Strategy Division of SCREEN Holdings. And recorded data of this event and the Q&A session will be available on our website on May 14. So please find it and for use.
And today, in addition to this conference room in Japanese, we hold one in English with a simultaneous interpretation into English to entertain participants from abroad. And before the opening of the event, let me give you 2 notes.
One is that that on Teams where cameras and microphones are disabled. And microphone will be enabled during the Q&A session. And second, when you [indiscernible], please refrain from mentioning the name of the customer or [indiscernible] and we cannot answer the question regarding the specific situation of the specific players. May I have your kind understanding. And we'll give you the instruction about the Q&A session after the presentation and please [indiscernible] after the presentation. And as was notified today, we will not entertain the questions from the media. I appreciate your kind understanding.
And let me introduce you today's participants, Goto, Representative Director, President and Chief Executive Officer of SCREEN Holdings.
I am Goto, Nice to see you.
Manabu Ishimura, Managing Executive Officer, Chief Financial Officer.
I am Ishimura.
And Chiho Otobe, Senior Executive Officer, Head of Communication Strategy.
I'm Otobe. Nice to see you.
And Director, Vice Chairman of the Board, Kondo will give you remarks now.
As of March 31, I spent my first day as the CFO. And as I was the Vice Chairman of the Board from now on, thank you very much for your very kind support to me. And from now on, there is no change in our financial policy and direction of the company. And I am sure that Ishimura-san will succeed me as CFO, and I would like to have your continued support with us. And thank you very much for your support and cooperation with me for the past 12 years as CFO.
And now Kondo will be CFO. Now CFO, Ishimura will give you the summary of the earnings and forecast.
So Ishimura-san, microphone is yours.
Now I want to explain about summary of FY 2026 earnings. First, this is a summary of consolidated earnings of 2026. Net sales was JPY 605.7 billion, which is minus 3.1% year-on-year, minus JPY 19.5 billion reduction. And OP income was JPY 122.5 billion, which is minus 9.7% year-on-year. For OP margin, we were able to have the 20.2%. It was forecasted 18.8% in January, but we are able to maintain 20% of OP margin. So in SPE, the sales declined, and profit increased compared with the January forecast.
In the fourth quarter, we have had record high order in SPE. For FT, equipment sales for OLED increased, and sales and profits rose year-on-year. For GA, sales grew while profit fell year-on-year. While profits were affected by U.S. tariff policies slightly. However, sales of new models are gaining momentum.
Due to this net income increase, fiscal year-end dividend raised to JPY 170. And again, this is quarterly number and full year numbers. For full year, the sales was JPY 60 billion and OP income is JPY 122.5 billion. OP margin and ordinary income was JPY 124.3 billion, and net income was JPY 92 billion. So we decreased both sales and OP, but we were able to maintain the 20% level for OP margin. And this is the group sales by destination compared to last year, at the end of March, the China percent decreased from 42% to 38%. However, instead, we have seen the increase in Taiwan. So combined sales in Taiwan and China are both 60%. So still, we focus on Taiwan and China market.
This is consumer group sales by segment. So same from previous. SPE is 80.2%. So in 2025, SPE sales portion has dropped slightly. However, GA, FT sales increased. This is due to this increase in GA and FT. So still our focus is SPE.
Here is the consolidated earnings by segment. So starting from SPE, the full year sales was JPY 486 billion. So it was minus 6.5% year-on-year. The OP was JPY 122 billion. So this is a drop of 10.4%. However, for OP margin was 25.2%. So we were able to maintain 25%, although sales declined. For GA, JPY 57.4 billion. So it's 8.5% increase year-on-year, and OP margin is 3.6%, which is minus 16.1% year-on-year.
The recent sales are strong. However, we have the tariff by U.S. impact. And for FT, JPY 44.7 billion net sales, and it's increased by 24.9% year-on-year. And OP was JPY 8.6 billion, which increased by 181.8%. OP margin is 10.7 points. So it has improved by more than 10% compared to last year. And profit ratio has -- we had a record high profit ratio for the -- the net sales was 14.5%, which increased by 2.6% year-on-year. We had a fixed cost increase. So we have seen the reduction in OP. However, starting from 4Q, we have started to see the recovery in OP income. And this is our financial standing. Net asset reached JPY 486 billion. So we have seen the increase in fixed assets and so on. However, the equity ratio, we have 67.4%. We have seen the increase in this number year-on-year.
Next one is the financial standing of cash flow. The full year operating cash flow was JPY 92 billion, so remained solid in 4Q, driven by profit accumulation and control of working capital. So we have JPY 71.2 billion 1 year ago, increased to JPY 92.7 billion in the fiscal year under review.
This is R&D expenses and CapEx and depreciation. For R&D expenses, we had JPY 37.7 billion so increased by JPY 6 billion. And the CapEx slightly declined and depreciation is now JPY 14.5 billion, which increased slightly from JPY 12.8 billion. The CapEx for [indiscernible] IT, we had CapEx for them, and we landed within expected range. And R&D mainly attributable to SPE and landed within the expected range.
For the analysis of operating income year-on-year, the decline in sales had a JPY [ 12.4 ] billion negative impact while profit improve in SPE and JPY 11.5 billion positive impact. The fixed cost mainly decreased in SPE for growth investment, including depreciation, R&D and personnel expenses had a JPY 13.4 billion negative impact, while the exchange rate had JPY 1.2 billion positive impact, mainly [indiscernible] and GA.
Now this is the business for 2027, the annual sales is 725 and the OP income will be 150 and ordinary income will be 150 and net income will be 110. So if we divide into first half and second half, we will see more, but number is higher in second half. In segments, SPE is 600 and OP income is 153, which is 25.5% in margin. [indiscernible] is 59 billion and the OP income is 4.5. And FT, the net sales is 47 and OP income is 2.75. So FT we had a very profitable customer last year and due to drop of those customers, it's going to reduce. And we have some advanced packaging in FT. From this fiscal year, fee is JPY 15.5 billion and OP margin will be 9.7%.
So incidentally, in SPE, the China memory customer, we are going to account in first half. That's our assumption for now.
And next is R&D expenses, CapEx and depreciation for 5-year trend. R&D expenses, CapEx for this fiscal year, we are expecting JPY 43 billion for both. The midterm -- the investment for growth, this is the phase. So we are expecting the highest number. And depreciation is JPY 18 billion. This is our forecast.
As for the analysis of operating income growth this fiscal year, an expected increase in sales will have JPY 71.5 billion [indiscernible] while decreased profitability will have JPY 8.5 billion negative impact. SPE will be the major sales driver, but its profitability will decline somewhat at the same time due to increase in fixed cost for growth investment. The minus JPY 3.5 billion exchange rate impact will come mainly from SPE and as for the SPE increase in [indiscernible] the exchange rate fluctuation.
This is the dividend outlook. At the end of this fiscal year, JPY 170 is [indiscernible] And from the announcement in January, that is increase of JPY 13. So the total is JPY 293. And for the year ended March 2027, the interim dividend will be JPY 60. Year-end dividend will be JPY 115. Total annual dividend will be JPY 175. And this is after the split. So the presplit basis, JPY 120, JPY 230 and JPY 350 will be the figures. So from the previous fiscal year, we have the increase of the dividend at the record high level. That's all from me.
Thank you very much, Kim-san. Next, let me invite President Goto to talk about the business environment and outlook.
So this is Goto. Let me give you the presentation on the business environment and outlook. In the year ending 2027, this is the summary of the full year outlook. So in overview, all segments are expected to achieve steady growth. For the whole company that we have been talking to you, we have the first phase of the portfolio transformation in which the advanced packaging and the holdings is now consolidated into the SPE.
And about SPE, particularly for the generative AI, we will capture the robust WFE investment so that we can enter into the further growth phase. And we will outperform WFE market growth. That's how we operate this business. And in our midterm management plan, we are focusing the investment for the further growth and we will carry out the investment into the future growth steadily.
And as was announced already, in the United States, we have opened a new R&D site in Albany in New York and have held the opening ceremony. So from this fiscal year, we'll start the full use of this facility so that we can strengthen our R&D capabilities and accelerate R&D efforts. And along with the market growth, we will prepare the production capacity increase of SPE business.
Next, please. And this is the market trends and outlook. And as about WFE, in calendar year 2025, we expected to run at $117 billion. In calendar 2026, approximately 15% to 20% growth or around USD 134 billion to USD 140 billion is expected. However, as you know, recently, there are many geopolitical events taking place. So there may be some impact of them. So we have to closely monitor the situation in the market and also the geopolitical situation. And investment trends by application, foundry logic, they will lead the movement. So foundry and logic will lead the growth of the market.
In memory, the shortage of memory has been the issue, and AI-driven DRM and HBM investment will gain momentum with the signs of NAND recovery. So we responded to the investment into them. And there is some delays, but about the image devices, we see or expect a gradual recovery so that we can be prepared for the future growth. And power device and others with silicon carbide, there's a recovery investment.
And advanced packaging. For the full-fledged introduction, investment in WLP and PLP continue at a high level. So for us, this is a focus area. So we will take measures to capture the demand.
And China market. Many things are talking about China market, but investment in foundry and memory for more advanced nodes remain solid. So we will capture the demand in China market, too.
And next is the composition of equipment sales by application and post sales. And here, year-to-year, logic and DRAM [indiscernible] we expect to increase. And about the post sales, as was explained by Ishimura-san a moment ago, the record high sales was achieved. So cost of sales will be the basis of our business. So in order to stabilize this business, we will make the further effort. So this is an area we want to grow.
Next, please. And this is the composition of sales by destination. And as you can see here, last year, year-to-year in the fourth quarter, there was a slight increase in China. But in general, mainly in Asian countries, China and Taiwan, these markets are growing now. And this is the sales by application of sales forecast. And mainly by DRAM, we see the big growth. And as I mentioned a moment ago, sales has been stable sales will continue to drive the market.
And next, the SPE composition of sales by destination forecast, and this is the forecast for the first half. And as for the second half, situation is uncertain. So let me talk about the first half only. So for the first half, we expect a big increase in North America. And also China, South Korea and Europe are expected to grow, and this is the current situation. And about the second half, when we have the certain visibility, we'd like to make another announcement.
And this is the sales trends and forecast about GA. And about GA, there was an impact of U.S. tariff, which had a negative impact on the profit, but newly released models will be the main player in the business. And recurrent business, including ink has been performing very solidly. So we'll have the 2 axis of the new products and recurring business so that we can sustain secure the profitability in this business.
Next is the sales trend and forecast of FT. In this fiscal year, business will have a slowdown compared to the previous year. But still, we see the strong inquiries. So we will capture these demand and make them into business. And as I mentioned earlier, advanced packaging was now integrated into business. The production capacity of FT will have to be allocated to the advanced package business so that we can support the growth of the sales of advanced package, which we expect to grow from now.
And next is the sales trend of PE. And last fiscal year, we struggled with this business, but now the market is on a recovery track. And we have to capture this trend and new products were released last year. So based on these new products, we will capture the needs of the market so that we can see recovering of our sales and profit in this business.
So now I want to talk about our midterm management plan, the progress of [indiscernible] 2026. So the midterm management plan that we are working on, the second year has finished, and we are in the third year. So this is the last year of our midterm plan. The result until second year, you can find in the middle column. And the forecast for the third year, as I have already explained, the 3-year total target is JPY 1.956 billion and average OP margin is 20.9%. So for the target of these 3 years, we are confident that we are going to achieve all aspects.
Our main focus in midterm plan is we will just achieve the annual plan. And in what kind of image we will have is our next target. So this planning for new midterm management plan, we have to already make progress. So for -- to our new phase, we want to discuss how we want to advance our company.
So here is our cash allocation. So originally, we were going to spend JPY 360 billion as the investment fund and for R&D, CapEx and strategic investment and dividends. These are 4 major segments, and we made plan for each of 4. The accumulated figure total for R&D is JPY 112.4 billion. CapEx is JPY 100.4 billion, and strategic investment, JPY 80 billion. So those are all within our expectation. For dividend is JPY 89 billion, actually exceeding our expectations. So for next midterm plan, we have to -- we will consider how we will spend our investment fund based on this kind of result.
Next, please. Here is our ESG initiatives. So just briefly, starting from environment. So SCREEN win the highest 3-year rating from Shiba Biodiversity Initiative certification for 2025. So this is the highest ranking. And for society, for social, SCREEN is selected as a health productivity stock for the third consecutive year. And for governance, the evaluation of the effectiveness of the Board of Directors, the third-party committee has made evaluations, and we want to improve further the effectiveness of our Board of Directors. So we are going to disclose these facts in our website.
These are recent good news. So we have already made announcements, and I think you're already familiar. So we are going to skip detailed explanation. But in holding, we have made this kind of news. And please refer to our website for detailed information.
This is topics. As I have already explained, SCREEN selected as the health productivity stock for the third consecutive year. So we want to improve further to become a healthy and good corporation. So again, this is our next step, the constant communication. We are starting new initiatives, and we have acquired the shares in RUO. So we will keep this kind of investment going forward.
And other financial topics, the IP and intangible asset governance award, we have received for the first time, the special award we have received. So again, we are going to enhance these areas as well.
And next, this is business related. We received the 72nd Okochi Memorial Production prize. So our manufacturing effort was accredited and received award. So we are going to improve our productivity further going forward.
And this is, again, we have -- I have already explained and we have already announced our [indiscernible] and we have conducted opening ceremony. So we have welcomed the guests from overseas and domestic to have this opening ceremony, and we are going to speed -- increase the speed of the process development going forward, utilizing this new facility. And again, this is new release about the launch of CRD series. So PE, we want to catch this good momentum in PE market with this kind of product.
So Next, Otobe is going to explain about these topics.
So every time we have result briefing, we announced that we are going to have 2 follow-up meeting. First one in Japanese in June 11 and the second one is English in June 16. So IR team will be the speakers. And we have welcomed Mr. Nakamura. So we are going to welcome you by 3 of us. So this is it for our presentation.
But earlier, President Goto explained about WFC, the breakdown. We get questions quite often. So we want to talk about breakdown per application first before going on to Q&A session.
So Page 18, please. So investment trend by application in CY '26. So it's 15% to 20% increase year-on-year. And if we look at application, 15% to 20%. So in case of 15%, I want to explain, in the case of 15%, foundry, logic, they are going to grow 20%, about 20%; and memory, DRAM, 20% or slightly low; and NAND is 15% or slightly less; and the others are maybe 10% or less. So if we can grow by 20% in '26, the foundry logic will be -- number will be changed. Probably 25% growth can be expected for foundry and logic. And for memory, DRAM will grow by 25%. And NAND, maybe not so much change from the 15% scenario, 50% or slightly less and power and others, maybe 10% or slightly less. So the gap between 20% scenario and 50% is the foundry and logic and DRAM, they are going to grow faster compared to the scenario of 15% growth. Thank you very much. So now we want to address questions.
So first, Mr. Yoshida from CLSA Securities.
2. Question Answer
So thank you very much for giving us the breakdown of the growth. If possible, would you explain the WFE business to China? And you are going to outperform the growth of WFE. So you specify where are you going to -- how are you going to outperform the WFE as a whole?
Goto will answer your question.
So the market in China, I think relatively a flattish situation is expected rather than the big growth. And sales ratio has been flat. So relatively, we can expect a slight decline of the portion of China. But even with that decline, we do not expect the stretch of the China market from now.
And how we outperformed WFE, as you know, the advanced logic, foundry are the areas we have the strength. These are the strongest business segment for us. So as was mentioned by Otobe-san a moment ago, in case of the 20% growth scenario, this is the area we expect to be growth. So by capturing this market, we'd like to outperform the industry growth.
Understood. And my second question is about Page 12 of the slide. So you have the annual figures and also the figures for the first and second half of the year. And SPE is going to grow into the second half of the year. So by application, by the region, qualitative, could you give us the qualitative explanation about where you expect the further momentum into the second half of the year?
So inquiries from the market, as you know, from the rate of November of last year, it's been increasing. And as for the order intake, we had the record high level. And now the order received turn into the sales from the latter of the first half or into the second half. That's why we expect the greater sales or higher sales in the second half of the year.
And as for the special contents, as I have been saying, as mentioned in the market, there's a shortage of the memory. So investment by the memory manufacturers is expected in the second half of the next fiscal year. And also for the AI, the advanced logic expect the increase of the capacity by many players. And I think this will lead the growth. That's why we expect higher figures in the second half of the year.
And from Shimamoto-san from Okasan Securities, please.
I am Shimamoto from Okasan. First of all, SPE, how you look at SPE, it's going to grow towards second half. And you had -- sorry, JPY 600 billion forecast is maybe close to the capacity now. So if I'm wrong, please correct me. If that's the case, however, next year and onward, you're going to make new midterm plan and you have to maybe -- you want to accelerate the CapEx for new plant. So if you have any forecast already for next year or how you look at the capacity at this moment, would you please share?
Thank you for question. Our capacity, so the capacity -- sorry, to cover for this year, we think we are confident. And looking at the trend for next year, maybe we need additional capacity, as you said. So this fiscal year, in order to prepare for market expansion, we are going to arrange in terms of our facility. So next year and onward, when market is seeing the growth, we have -- we want to make preparation in accommodating that.
By the way, depending on preparation this year, how far can you increase the revenue for next year? So how -- and how much demand do you forecast for next fiscal year?
Our basic idea is SEMI or SCJ, they have the long-term vision. So based on that guidance, we want to understand how much we have to grow increase. And as I said earlier, SCREEN is targeting outperform. So we are going to have some addition on top of the guidance by those organizations.
Understood. My second question will be, well, you are seeing very strong result. However, the market share you explained in single wafer compared to 2024 is dropping. So the exchange rate is also included. So if you have any explanation of this share reduction? And if you can recover the share, how much you want to recover this fiscal year with what kind of strategy?
For market share, the number tells the fact. So last year, market share was like shown here. However, as you know, the market share is against the sales. So our POR is not taken by our competitors. Rather, the POR by competitor is growing. That's why market share declined. So last year, as our initiative, we are going to take the POR by competitor. That's what we have explained. And we have received already customer certification. So we are going to secure market share. And sorry, by taking POR, we are going to increase market share. And our strength area is now growing in terms of number. So we don't know. We cannot say exactly how much percent, how many percent. But we are confident to recover and we have the plan to recover. So please look at carefully how much -- what kind of trend we have for our market share.
Next, Mr. Nakamura from Goldman Sachs.
My first question is about SPE segment profitability. So in the fourth quarter, OP margin was over 30%. I think it was very high level. And you explained the background of this high profitability. But in the new year, you expect the growth of the sales, but OP margin is about over 25%, not so different from that of the previous year. So what is the background of this?
And Ishimura will answer your question.
So in the fourth quarter, sales was large and the cost of sales increased with high profitability and also the forecasted sales in the fourth quarter we achieved over 30%. And for this fiscal year, the OP margin will be 25%, which is not so different from the previous year. It's because we have the increase of the fixed cost for the investment for the future growth, and the ratio of the cost of sales may decrease slightly. So at this moment, these are the expectations we have for this fiscal year.
And my second question. So the SPE achieved a record high performance in the fourth quarter. And when do you see the further increase of demand SPE, the JPY 340 billion is the expectation for the second half? [ JPY 700 billion annualized. ] So when do you expect -- when you see the greater increase of demand, given the current production capacity, can you increase the sales further? And also at present, there are a shortage of the materials components due to the Middle East situation. And what impact do you expect?
Goto will answer your question.
So in the second half, the JPY 340 billion of sales expected. And if there are any possibility this will be increased further, maybe we do not expect a doubling of the figure, but we have the capacity to cover the expected increase from this level. So roughly to say, even if the demand will be larger by 10% or 20%, we can handle them.
And as for the procurement of the materials and components related to the Middle East situation, at this moment, we have secured or we can -- we have the visibility that we can cover the demand for the materials and components. But if this situation in the Middle East takes longer to be settled, it's honest to say we have to review our situations and come up with the measures. And it's hard to see -- have the clear visibility -- so on an everyday basis, we have the simulation of the situation and closely monitoring how the things will develop.
So I want to have a question from Hirakawa from BofA Securities.
I'm Hirakawa from BofA. So my first question is the profitability. Fixed costs will increase in fiscal year '27 by JPY 32 billion. So fixed cost is going to increase. This is in accordance with the plan for midterm, but out of this JPY 32 billion, R&D increased only JPY 6 billion. So remaining JPY 26 billion, where are they coming from? And how are you going to recover this investment in the future? This is my first question.
So for fixed cost, as you mentioned, this is mainly for R&D and depreciation. And also personnel cost will increase. So within that, we will see the increase of the headcount. So SPE is expecting JPY 600 billion. So we need to hire additional headcount in order to achieve that. And apart from that, well, headcount will increase towards the growth in the future. This is the plan. So probably that explains this increase in fixed cost. And ACCA in R&D plus the CapEx like office rent and so on. So this increase will explain.
So as a follow-up, R&D, depreciation and field service and rent -- so meaning personnel cost. So which one is the largest? And it's out of JPY 32 billion, about how many percentage already decided for use.
So this is fixed cost and decision, of course, depreciation is already decided for the past investment and ATCA, it's already decided. But for others expenses [indiscernible] expenses.
And looking at the situation of the Middle East, we need to advance. So there are still some variable portion, but we don't think this fixed cost will increase further than that.
My second question is, so as to SPE, for first half, we have shared whatever visible for the first half. And second half, when it is visible, you're going to disclose. So for second half, about what part is already visible and about what part is still pay? As far as you know, can you please share the upside? I believe it's upside, right? But because of some risk, you're not going to announce the fixed number. Would you just share your feeling?
For second half, we have been already receiving inquiries. And how much is visible is not easily commented. Towards third quarter, we have already some visibilities with our familiar customers. But after that, still not. So that's the image we have right now.
Next, Mr. Yasui from UBS Securities.
This is Yasui from UBS Securities. I have 2 questions. First one is on the demand in China. And related to that, I want to see the impact of the regulations and all. So in that case that much law is enacted, I think you may expect a big expectation. So how do you evaluate the possibility of this law to be enacted? And how much impact do you expect if you made any calculation please advise us? This is my first question.
And the second is about the market share. So the price hike due to the rising material products? Material prices have been introduced by other players, and the yen has been depreciated in the past 3 years. So you may come up with higher prices given the current situation. So would you explain us about your pricing policy?
And Goto will answer your question.
So first, about the much valuations in China by when and what way it be enacted is not yet decided. So honestly, to say, we do not know how the things will develop. But as you mentioned, if the rule is enacted, how much impact do we expect? As for the expected impact, investment to China, I expect 10% to 15% impact. That's how we see the situation now, but it is not at all [indiscernible]. So we are in the middle of carrying out the simulation. And through the various channels, we are trying to collect information about the revisions of the laws and the regulations. And not only us, but all the manufacturers who are doing the business in China are the subject of regulations. So also through the industry associations, we will collect information, share information, and we are now studying how to deal with these expected regulations, both in China.
And about your second question on the pricing, yes, we are facing the rising prices of the raw materials. So we are in negotiation with customers about the pricing and trying to find a way to how we share this price increase of raw materials with the customers. And through the salespeople on an everyday basis, we have the study and also negotiation with customers. And customers do not ask us to take the burden of the rising raw material prices. So how we will share that price increase of the raw materials, the cost will be studied and carried out actually. So we do not have any intention to cover all the cost increase. And also, we do not expect we can pass through 100% of cost increase to the customers. So through the various negotiations, we will work on the passing through of the cost increase.
Do you think that the price increase can contribute to the improvement of your profitability? Can you expect that range or that scale of price increase?
So in the past, at the timing of the price increase of the raw materials, we had a negotiation with customers and the new prices or higher prices were accepted by the customers. So in the level, we would like to carry out the negotiation with customers to avoid the negative impact on our profitability.
Tamura-san from Morgan Stanley.
I am Tamura from Morgan Stanley. Maybe I have to come back to the first point. The SPE order will be the record high in 4Q. And what kind of change you have seen in the last 3 months? And this year and after that, you're already making preparation. So what kind of momentum are you seeing after 2027?
Maybe it's too early, but if you have any idea, could you please share?
So recent 3 months, as you know, for AI penetration, lots of device for server and the HBM memory are short. So we need to increase those. That's a large trend, as you already well understand. And memory companies, all of them announced the investment for increased production. And we are seeing the growth of inquiry for the last 3 months. So order and inquiry, we are seeing quite strong for the last 3 months.
And in this situation, in order to address the situation, the conventional device, if they are used for the data center and others, the power consumption will be probably a problem. So the power saving device, we are seeing some inquiry for that and market is now changing rapidly for those products. And after 2027, so in 2027, what we cannot achieve this year will be maybe delayed to next year.
So in terms of growth, we cannot specifically talk how far can we grow in '27 compared to '26. But for '27, similarly to '26, we think we can grow at the same pace. That's our forecast.
So WFE outlook by 20% scenario and 15% scenario you have explained. And foundry logic and DRAM has upside. So if those are coming true, what kind of factors do you need?
Well, first, the situation in the world has to be settled down. Otherwise, they are not sure this kind of capacity growth will really find the consumer or customer. So our concern is geopolitical, not only for SCREEN, but this is true for entire world. As long as we can clear those points, market needs and device needs are very, very strong. So we will have the opportunity to actualize this upside, and we have no concern.
And in the same page, advanced packaging, the investment continues at high level. Looking at like the focus for this year or if there's any adoption trend, can you share?
In advanced packaging, same as entire growth. We are expecting maybe 20% or so increase. So not only advanced packaging, but in entire segment, we are looking at those level of the growth for this year.
So how about the adoption of your screens equipment is our new initiative. We are going to focus on this area, and we have made already a lot of effort, which are already coming through. And once it's actualized, you will get the maybe reaction. Maybe in the second half of this year, you will see those reaction for your side.
And because of the next speaker would be the last one to ask questions. Nakanomyo-san from Jefferies Securities, please.
You have the greater profit while they declared the decline in sales expected. So what is the background of this expectation? As mentioned before, post sales grew more than expected and the business is highly profitable. There was also a positive inventory impact. The sales by more than JPY 10 billion, which is quite significant. What was the reason for this? This is due to the delayed shipments shifted to this fiscal year and a greater portion of sales. The sales declined, I think the decline in sales was in the large scale. And why the sales decline in such a scale?
Delay or shift timing of the delivery.
Fukuyama-san from Daiwa Securities.
I'm Fukuyama from Daiwa Securities. SPE outlook, looking at that, Well, as an update from last year, the China WFE outlook says memory investment is very strong. Why did you add this sentence which one is stronger, DRAM or NAND? The Chinese device manufacturers, they are now very aggressive for memory investment. So in the world, the memory is short. So Chinese manufacturers are going to be very proactive for this investment. That's why we have added this sentence.
So Chinese memory probably for -- you don't have so much relationship with Chinese memory manufacturers. That's my understanding. But by adding this sentence, you are seeing already this business environment. So you can have the good opportunity from this investment growth in China.
Yes, Chinese, they used to use more low-end legacy node. But recently, China started to develop their AI by themselves and servers. So HBM based on HBM, they have to make memory used for AI. So not -- so in low end memory, we were not strongly trying to sell our equipment. But based on HBM, they make now high-performance memory, and we have already -- we are seeing some opportunity in entering that market. This is one new trend that we are seeing right now. Thank you very much.
Thank you very much. This concludes the briefing on SCREEN Holdings consolidated business results for fiscal year ending March 2026. Thank you very much for your participation to the end of the program.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
SCREEN — Q4 2026 Earnings Call
Sales dipped modestly but SCREEN kept margins above guidance, raised the dividend and guided higher on strong semiconductor-equipment orders.
📊 Quarter at a Glance
- Revenue: JPY 605.7bn (-3.1% YoY)
- Operating profit: JPY 122.5bn (-9.7% YoY)
- OP margin: 20.2% (operating profit margin; beat January guidance of 18.8%)
- Net income: JPY 92.0bn
- Operating cash flow: JPY 92.7bn (up from JPY 71.2bn a year ago)
🎯 What Management Says
- SPE focus: SPE (semiconductor production equipment) is the growth engine—management expects to capture AI-driven wafer fab equipment (WFE) demand and outperform the market.
- Invest to scale: R&D and capacity investments continue (new Albany, NY R&D site; higher headcount and depreciation) to prepare for expected demand.
- Portfolio shift: Advanced packaging and OLED/FT work are emphasized; management is growing recurring post-sales (service/parts) to stabilize profits.
🔭 Outlook & Guidance
- FY2027 guide: Sales JPY 725bn; Operating profit JPY 150bn; Ordinary income JPY 150bn; Net income JPY 110bn.
- Segment targets: SPE JPY 600bn (OP JPY 153bn, 25.5% margin); GA JPY 59bn (OP JPY 4.5bn); FT JPY 47bn (OP JPY 2.75bn).
- Investments: R&D JPY 43bn and CapEx JPY 43bn planned; fixed costs expected to rise ~JPY 32bn.
- Risks: Second-half visibility limited; China regulatory uncertainty and raw‑material price pass‑through remain downside risks.
❓ Analyst Q&A
- SPE orders/capacity: Q4 saw record SPE orders; management says current capacity can absorb ~10–20% incremental demand and will arrange additional capacity this fiscal year, but second-half detail remains limited.
- Fixed-cost rise: JPY 32bn increase attributed to R&D, depreciation and hiring; exact split not fully detailed and some items remain variable.
- China & pricing: Management estimates a potential 10–15% impact if stricter China rules pass; raw‑material cost increases are being negotiated with customers (no full pass‑through assumed).
⚡ Bottom Line
- Investor takeaway: SCREEN delivered margin resilience and strong cash flow, raised payouts and is banking on SPE-led AI/WFE demand; near-term upside depends on executing capacity builds, controlling higher fixed costs and managing China/regulatory and material‑cost risks.
SCREEN — Q3 2026 Earnings Call
1. Management Discussion
Good afternoon, everybody. Now we'll hold an earnings presentation for the third quarter fiscal year ending in March 2026 for SCREEN Holdings. And let me introduce you the presenter for today. Masato Goto, SCREEN Holdings Company Limited, President, Member of the Board, Chief Executive Officer; Yoichi Kondo, Executive Vice President, Member of the Board, Chief Financial Officer. And today, in addition to CEO and CFO, we have three executive officers attending this event. Manabu Ishimura, Managing Executive Officer, Head of Financial Strategy Division; and Akihiko Miyagawa, Senior Executive Officer, Head of Corporate Strategy Division; and Chiho Otobe, Executive Officer, Head of Corporate Communications Department, Corporate Strategy Division.
Now we'd like to invite Executive Vice President, Kondo, to give us a presentation about the consolidated business results and forecast. Now the microphone is yours.
Now let me give you the presentation about the consolidated business results and forecast. Net sales of JPY 425.3 billion and operating income, JPY 77.4 billion and OP margin 18.2%. And that is the sales and profits both decreased year-on-year, but it is in line with expectation. In SPE, sales and profits both fell year-on-year, but we're now receiving a very strong inquiry. So performance has now bottomed out and entered into recovery phase. And FT, it is performing very strongly, and we could have the strong sales and profit growth over the previous year because of the strong sales of OLED. So the full year outlook remains unchanged, but the large-scale project of sales from China is now shifted to the next year. But with that, we still maintain the full year forecast.
And this is the third quarter cumulated consolidated earnings. So it was JPY 425.3 billion, and operating income, JPY 77.4 billion. That is minus JPY 23.1 billion; and ordinary income, JPY 78.8 billion, minus JPY 23.4 billion; net income, JPY 54.9 billion, minus JPY 14.5 billion.
And this is the sales by the estimation, Japan, 14%; Taiwan, 19%; China, 39%; Korea, 8%; in other countries, 7%; North America, 8%; and Europe, 5%.
And this is the sales by segment. SPE, 79.5%; GA 9.1%, FT 8.2%, PE 2.2% and others, 1.1%.
And this is the consolidated earnings by segment. First, SPE, the third quarter cumulative is JPY 338.6 billion. Operating profit, JPY 78.3 billion. That is OP margin of 23.1%. And on the right side, you can find the comment, sales and profits both fell and foundry operation remained solid, while logic sales declined. And order intake is strong. So we are now entering into the recovery phase. In GA, JPY 39.5 billion of sales and operating income, JPY 1.9 billion, and that is sales and grew whilst profits fell. Sales growth was offset by the impact of the U.S. tariff. Next, FT, JPY 35.8 billion of sales, OP income, JPY 7.3 billion and sales and profits both grew. Equipment sales and OP margin grew significantly, mainly driven by OLED. PE JPY 8.9 billion of sales and operating income is minus JPY 0.5 billion and sales and profits both fell with the recovery expected in the fourth quarter because of the strong inquiry we are receiving. So we can maintain profit.
The balance sheet and total asset is JPY 677 billion, and net asset is JPY 443.2 billion, and equity ratio achieved 65.4%, and that is the JPY 180 billion level.
And this is the cash flow, and we have the interim corporate tax payment -- for the first quarter, operating cash flow was JPY 9.6 billion, used JPY 5.1 billion in investments. The free cash flow is JPY 4.5 billion and the financing cash flow increased, but we had interim dividend payment of JPY 11.6 billion. So JPY 40.5 billion cumulative operating cash flow. And we had a free cash flow of JPY 23 billion.
And this is R&D expenses, CapEx and depreciation and amortization. They have been in line with our expectations. There's no change in the figures. So the JPY 38 billion of the R&D and JPY 28 billion of the CapEx, Depreciation and Amortization, JPY 15 billion. So mainly for the SPE, we have been in line with our expectation.
And this is analysis of the operating income growth in -- so this is a comparison between the third quarter in FY '25 and FY '26. So in year ending March 2025, it was JPY 100.6 billion minus JPY 14.1 billion due to sales and capacity utilization but it's going to JPY 77.4 billion. And there's minus JPY 11.8 billion impact of fixed cost and increasing the profitability by JPY 2.6 billion. And so for the third quarter, it will be JPY 77.4 billion. And the sales decline mainly by the SPE, but we have the improvement of profitability, mainly was SPE and FT and fixed cost increased mainly about the growth investment attributable SPE and exchange rate has an impact from the GA.
And this is the business forecast. So you can find the change from October. There's no big change. So the forecast is JPY 621 billion for the net sales and JPY 117 billion for the operating income and net income is JPY 88 billion; SPE, JPY 502 billion and JPY 121 billion of the operating income and OP margin 24.1%; GA, JPY 53 billion of sales, OP income, JPY 2.5 billion; OP margin, 4.7%; FT, JPY 46 billion and income, JPY 8 billion; and OP margin, 17.4% and JPY 15 billion and JPY 1 billion of income and OP margin, 6.7%.
And this is analysis of operating income growth forecast against actual from the ending in March 2025. And we had the plus JPY 2 billion from the sales and capacity utilization and no change with the profitability, but there's a negative impact of the fixed cost at minus JPY 19.5 billion and another JPY 1 billion in exchange rate negative impact. And profitability mainly improved with FT and fixed cost, mainly with SPE, we made a growth investment, which had an impact on the fixed cost and exchange rate it was JPY 152.78 per dollar and JPY 163.05 per euro. But this time, it is JPY 145 per dollar and JPY 170 per euro.
And this is about the dividend outlook. There was no change. So paid to the expected year-end dividend is JPY 157, and we carried out the interim dividend payment. So annual dividend would be JPY 280 and the payout ratio is about 30%. And we'd like to make the further effort to make the better return for the investors. That's all from me. Thank you very much.
Thank you, President, Vice President. Now Masato Goto is going to explain about the business environment. Mr. Goto, please.
Okay. Goto is going to explain the business environment and the full year outlook. The full year outlook, the summary. SPE, as was explained earlier, the pending sales projects have been shifted to the next fiscal year, taking the cautious attitude. On the other hand, stronger demand centered on foundries and memory makers, particularly for HBM came in. Therefore, that offset the impact, allowing us to maintain the full year forecast. As for FT, the good performance buoyed by the active display OLED investments. And new businesses and advanced packaging, we are on track. And the next fiscal year onward, further growth is expected. The last December, we made an announcement we are going to establish a new R&D site in the U.S. called ATCA. We continue implementing the growth investments.
That's the current situation. SPE, the business overview. Market trends and outlook. And WFE, the calendar year 2025, the growth expected to land at mid-single-digit range. It's around USD 115 billion. And as for calendar year 2026, we with the variability by region and application, then the overall, the performance is going to be quite strong and AI-related business is expected to grow low double-digit growth is expected. Investment trends by application. As for foundry, leading-edge nodes, the 2-nano or 3-nano are going to be strengthened and the investment is going to drive the WFE growth. And as for logic, it's a gradual recovery trend. And the memory as market -- it is set in the market, DRAM center, the memory shortage is going on and the memory suppliers is trying to strengthen. And so the steady investment recovery is expected. As for NAND, for server demand is getting robust and then so it's also expected to recover. Image devices, memories for server investment, it's a bit biased. And so the memory for devices is not recovered. So because of that investment is rather delayed. And the power devices and others, gradually, the market is recovering. Advanced packaging originally, the centering on Asia investment was quite active, but not only Asia, but the investment in North America is emerging. And as for Chinese market, the emerging -- not only the emerging customers, existing foundries are continuing the investment. And so the market situation is turning around.
SPE, the composition of equipment sales by application and post-sales. The Q3 cumulative this fiscal year, the Q3 cumulative JPY 338.6 billion and driven by the foundry, foundry sales accounts for 51%, logic 5%, flash 3%; and DRAM 13%; Imaging device, 1% and power device and 2% and others 5%, and the post sales is 21%. The quarter-on-quarter, the sales to foundries increased and year-on-year, sales to foundries and DRAM remains solid. Post sales remains stable, 21%, as you can see.
SPE composition of sales by destination. As for this, the trend hasn't changed very much in the Q3 cumulative China -- for China, they declined a little bit. And for Taiwan, the increased. For Japan, the 12%. So the comparison with the same time -- same quarter last year, the composition is a bit different. However, the China and Taiwan, the mainstream no change.
SPE composition of sales by application forecast, JPY 502 billion and the foundry is driving and mainly nearly 50%, 48% for foundry and followed by DRAM and logic and flash. This is the composition. And as for post sales, full year estimate, 19%, a little less than 20%, maintaining that level is the current prospect.
SPE composition by sales by destination forecast, again, at the moment, the China accounts for 39%, nearly 40%. For Taiwan, 26%; for Japan, 11% and others, as you can see here, this is our estimate. And year-on-year, the Taiwan is going to increase significantly in our expectation.
GA sales trends and forecast. The device and recurring business remains stable. As for profit, were affected by U.S. tariff policies. So efforts are underway to enhance the profitability through operational efficiency and the price pass-through. Recurring business accounts for half of our business -- half of our sales. This is the current trend of GA.
And FT, as I mentioned earlier, the centering of OLED display equipment investment is quite robust. So sales increased. Half of the sales is new investment for OLED and then the 25% of the existing LCD and the remaining is the post sales. And for the time being, display, the equipment investment are expected to continue. And so display is on the trend of recovery as well. That's the current situation.
And next PE, the market recovery is trade and struggling, but centering on the Korea and China, the gradual recovery is seen in the third quarter, it was very severe situation. But in the Q4, the equipment sales are on the recovery trend. And the post sales accounts for the half of our sales and the postpaid sales is getting the base and also the product market is recovering. So it's getting the turning around to the positive side.
And next about the stock split notice. As for this Tokyo Stock Exchange and policy guideline and instructs us to lower the minimum investment and for more liquidity, and we may split into 2. But in order to improve the situation more or better, we decided to split in the ratio of 1 share into 2 shares. And the March 16 is the date of public notice and the record date and March 31 is the record date and the split into 2 shares. And the method of split is written here. 95.3 million shares will be doubled. And along with that, we are going to amend the articles of incorporation and the total number of authorized shares before stock split is 360 million shares. This will be a 720 million shares. So we are going to amend the articles of incorporation. As for the schedule, the date of a public notice of record date is March 16, 2026. Record date is -- effective date is April 1, 2026.
Activities related to ESG. Along with our policies, we have been taking these ESG initiatives as planned and topics for today is we were chosen as the Clarivate Top 100 Global Innovator for 2026. And each ESG-related initiatives are announced in our homepage. So please refer to our home page for the details about our ESG initiatives.
And this is a group news. And we make publication about these news on our website. So please find the details in the website especially about our development site in the United States, we have the group about all these, you can find the details. And if you have any further questions, please come back to us. That's all for me. Thank you very much.
Thank you very much. Mr. Goto. Now I'd like to go into the Q&A session.
First, Mr. Yoshida from CLSA Securities.
2. Question Answer
This is Yoshida. And so about the focus of WFE market for '26, so logic, foundry, DRAM, about major application, I will have your kind comment. And also, if you have any information about China, please let us know.
So, in 2026 forecast, AI-related inquiry has been increasing. So this will continue to lead the market growth. So AI-related foundry will enhance their capital investment and also the enhancement of the capacity for the DRAM, which is in shortage, these two will lead the market. And also in China, our customers in China, mainly in foundry are now planning the active investment. So we can expect a growth equivalent to the average of the WFE market.
So when you see your competition, do you think that the growth of the WFE will be more accelerated in 2027 than in 2026? So do you have any comment about the expectation in 2027?
So we just started 2026. It's hard to make the comment about the next year. But as you mentioned, the trend is that following the 2026, we also continue to see the growth into 2027. So '26 and '27, these two years will see the increase of the capital investment. So at this moment, we cannot talk of the specific figures about '27, but this is the kind of overall trend we expect in the market.
And my next question, maybe it's a bit too early to ask this. But as for the next year's performance, I have a question. So this time, the DRAM to China sales will be shifted to next year. But excluding this point, WFE growth of your business in next year can achieve the expected growth? Or do you expect any kind of movement, which is different from the overall trend in the industry or market? Please let us know.
So our focus about the next fiscal year, as you mentioned, we will make the -- we expect the CapEx in the area where we have the strength. So we have the confidence that we can achieve the growth aligned with the market growth. And about the strength we have, which is unique to us, we have various ideas, but please let me refrain from mentioning these specifics. So when the right time comes, let me make announcement about these. That's all for me. Thank you very much.
Thank you, Mr. Yoshida. Mr. Nakamura from Goldman Sachs, please.
Thank you for appointment. First point, SPE OP margin. In the Q3 OP margin, 24% level. In Q4, you plan the SPE sales is quite high and the OP margin is around 26%. How you consider the OP margin, the size of sales and also the product mix?
SPE OP margin as you guessed that we are expecting very close to the figure that you mentioned, top line goes up along with that, the factory operation ratio utilization will also go up. Therefore, the same -- if the bigger volume as we have shown before, we're going to have a similar OP margin. So, basically, as you mentioned, we would expect the similar number that you mentioned.
In different questions, the Q3 to Q4, the nearly JPY 40 billion increase, but the operating income is an increase of about JPY 13 billion. If we consider the marginal, the cost ratio, then seems to be a bit lower. How do you think? Is it good or not?
I think there are several way of considering the current business situation is considered, we set in that level.
The second question, SPE, the current inquiries and order situation at the end of last year, there might be some changes in my understanding. The quarterly order intake, if you have -- if you can give me a hint of that level. And together with that, the slipped the specific project. Now shifting to the next fiscal year, the recording of the sales, what is the probability of the -- I would like to explain that.
As for the order intake details are not disclosed, and I cannot give you the specific number, but the market itself is turning to the positive side. And therefore, it's in the recovery trend. And Mr. Kondo mentioned earlier, it's the V-shaped recovery. So significant recovery is expected. And the project, which was shifted to the next fiscal year, that we set the sales in the next fiscal year, taking the cautious attitude. So we expect to record in the sales in the next fiscal year.
Thank you, Mr. Nakamura. Next, Mr. Shimamoto from Okasan Securities.
I am Shimamoto from Okasan Securities. My first question is about the sales, which is shifted to the next fiscal year, the project in China. So I heard that the scale of the business is about JPY 20 billion. And all of this will be shifted into the next fiscal year. So, first, let me confirm this scale of the business. And text question, so the foundry or FT, which is vigor to offset this shift to the next fiscal year? So I want to know the business competition in the second half of the fiscal year.
So the one shifted into the next fiscal year, the scale is, as you mentioned, and they are offset by the logic, memory and many other types of businesses because we are receiving very strong inquiries. So we are making effort to increase the sales in each application. So possibility is that this project or sales shifted into the next fiscal year.
Is there any possibility this will be realized within this fiscal year about this project in China? So we have the business of the sales of equipment and installation. We are now going to have another contract with a customer separating these two. But actual documentation and also the upfront payment or so we have to decide whether or not to return the upfront payment received with original contract and involving the auditors, we are now taking necessary steps. But the Chinese New Year and also the situation of the customer side. So we decided to take this business to be shifted into next fiscal year, but things have been carried out without any delay.
And China's close of WFP in 2026. So the average figure was given to us, so that is the lower double digit, maybe 12% to 30% growth is the image we now have. So the growth in China, could you give us a breakdown of this growth in China from the existing foundry may lead this growth? So the growth of this foundry maybe exceed the average. And how about the growth from that memory? So if you have any breakdown of the growth in China, please let us know.
So market in China in 2026, rather than the emerging customers, we think that the existing foundries will lead the market. And also the memory customers are making investment. So these two will be the main players in leading the growth of China market.
Thank you, Mr. Shimamoto. And Mr. Yasui Next of UBS, please.
I am Yasui of UBS Securities. The first question, at the end of last year, at the IR Day, the back-end process equipment seems to be coming up. The WFE at the lower 10% the back-end process and how much would it increase 26% and 27%, probably '27. Would you give us just an image? This is the first question.
The back-end process market, according to the trend, '27 is going to -- we are going to have an increase instead of '26 as a trend. And instead of this fiscal year, next fiscal year, the back-end process product group are expected to increase. The equipment for the back-end process, this fiscal year is the higher, the single digit and next fiscal year, double digit. And so '26 to '27, the market is expected to grow. So we are preparing ourselves and we are also addressing this demand increase.
As a follow-up question, according to our company's search, but the back-end process, advanced packaging seems to be in shortage. I think that's bigger demand. As you explained earlier, the back-end process investment comes out and then the front-end process investment would come later. So what is the bottleneck of back-end process that affects the front-end process market? The back-end process, the impact, how much will be given to the front-end process?
There might be some impact, but the back-end process would give a big impact on the front-end process. I don't think that not much. I don't think it's much. And then the -- how it is the increase volume-wise, it's still in the transition period. So from this fiscal year to the next fiscal year, we don't have any concern. After the FY '27 onwards, the market may change significantly. We keep monitoring the market situation.
Thank you very much, Mr. Yasui. Next, Mr. Yoshioka from Nomura Securities.
This is Yoshioka from Nomura Securities. I have two questions. First one is about the WFE market in 2026. So this week, WFE companies in United States announced that they expect a 23% growth in this year. So, to your eyes, how you see this expectation of the more than 20% growth? So do you expect this level of upside? Or when you take a realistic view, you see some bottleneck so that achieving the more than 20% growth sounds difficult. So about this announce or expectation of achieving more than 20% growth, I will have your kind comment.
So, the growth of the market, as we explained at the beginning of today's presentation, but in 2026, we expect the lower single digit or more than 10% growth. And how do you compare this to the more than 20% growth expected by the other players? So market growth very smoothly, I think we can expect more than 20% growth.
And second point, about the profitability from now on, especially for the year ended March 2027, I want to have your kind comment on your idea about profitability. So when I see the second half of this fiscal year, OP margin is 25.5% for the SPE business. And next year's SPE's profitability, I think this figure can be the standard. And also the factors affect this will have the impact on the profitability, except for the sales growth. So the customer or region mix or ASP changes, cost increase, I think there are various factors which have impact on the profitability.
So towards the next fiscal year, which factor should be paid attention to when you think about the profitability?
So about profitability, so 25% of OP margin can be achieved. Of course, there are the upside and downside factors, including risk factors and raw materials prices are getting higher. And from now on, we may expect some restrictions from the geopolitical situations, which result in a cost increase, which have the negative impact on the profitability. But at this moment, as for the production plan for the next fiscal year, we are being prepared.
So if there is any big change, there's no big change in the environment, I think we can achieve the expected results. So in order to answer your expectation, we are going to announce the plan or forecast for the next fiscal year.
Thank you. And next, Mr. Wadaki from Morgan Stanley MUFG Securities. We cannot hear you. So we would like to move on to the next person first, Mr. Hirakawa of BofA Securities.
I have one question. This fiscal year is the performance of the plan. FT is increasing and then the -- it's included as a buffer of entire business. SPE has some risk, which cannot be offset. That's why it's included. This is the first question.
And the second question is related to the first one, and let me continue. The SPE the inventory you recognize the sales based on the installation. And then the inventory hasn't increased from the Q2 to Q3. And then the -- can you achieve the target of SPE? I'm not convinced. So sales probability, how you think about it? Would you explain that? That's all.
The first part, it was difficult to hear. The FT, the upside is not added on the OP income, but which seems to be absorbed in the expenses of corporate. And so the -- it seems like you created that sort of a buffer. And because SPE, the expected sales was not achieved that this could be used as a buffer. So how to prepare the numbers that I would ask you to guess by yourself. But SPE, the part will be offset by SPE. And the OP income, we we are not worried, but the net sales part, it might have some shortage, but probably okay.
Thank you very much, Mr. Hirakawa. Mr. Wadaki, please unmute and speak. I'm very sorry, but we still cannot hear Mr. Wadaki. So let me move on to the next person, Mr. Yamamoto from Mizuho Securities.
About the project, which was -- which is shifted to the next fiscal year, I have a question to Mr. Kondo. So sales accounting is important for you. So you already collected cash. So you -- I don't know whether you may cancel it or not, but already the cash is collected. So is there any idea to cancel this or because the shipment is already made, so you also -- do you think that the accounting the sales is more important? Or is there any idea to give up accounting or sales? -- because on a cash basis, you secured the profit. So, to our eyes, the operating profit or operating profit or without any appeal, you may have the change in the EPS. So how are you going to handle the accounting of this project, which is shifted next fiscal year?
So about this delayed project, based on the contract, we already delivered the equipment to the customer's warehouse. So risk is now transferred. So there was no way to cancel this contract. So we -- in order to account the sales from this project, we are now working with the customers and auditors. So bottleneck is the installation or completion of the installation without which we cannot account the sales even if the installation is in the equipment is in the hands of the customers and the risk is on their side because this is the accounting rule.
So we have to follow the steps. So this is not about whether we place importance on the sales accounting or not. So we have to execute the contract with customers. That's why we are in negotiation with the customers. And now the customers agreed to have the separate contract for the delivery and installation of the equipment. And we are now working on the documentation of these contracts, which includes the part of the repayment of the money, but we are taking the necessary steps to proceed. And the contract with the customers and the actual process for executing it will proceed. And after the auditor's work, when time comes, we can account the sales with account the sales. There is no more than that.
So if the installation does not go smoothly or as planned, is there a possibility you may receive a repayment about that part? So this means that this pending case will continue.
As for the equipment, we can have the accounting of the sales. But if the installation is not carried out as you expect. What happens? So, in that case, the installation cannot be accounted as a sales. So we have to talk about the repayment.
So, Jefferies, Nakanomyo.
I have two questions. Sorry to repeat the question, but Q4, JPY 160 billion SPE, the installation basis. So the shipment was made and the visibility is very high. Am I understanding correctly?
I think it's okay to understand that way. And from Q3 to Q4, logic and China seem to increase. in comparison with Q3, but as an explanation, foundry and HBM are going to offset. And in comparison to Q3 and Q4, the logic in China are going to increase. China -- among the customers of China, there are some customers who are doing the foundry business. And then that's why we use the term of foundry. The logic is which company customer. As for the specific customer, we cannot talk about the name. I hope you will understand, sorry.
And the second question, advanced packaging. previously, the '26 and the higher single digit, '27, the lower double digit. Then what is the current situation?
Nakanomyo-san. As I told you, this fiscal year, the FY '25 -- sorry, the single digit, higher single digit and '26 is the lower double digit. And so the higher single digit in the '25 kind of products. As for this, already we launched LeVina, LEMOTIA, that product is covering the sales. So cleaning -- instead of a cleaning equipment, those products. Yes, partially, we have sales of cleaning equipment. But for back-end process products, these two products are the strong products that we would like to sell strongly. And then that is the business size of the back-end process market.
The equipment market, '27 and '26 and how much it is expected to increase in the back-end process. And the back-end process, the cleaning equipment, how much it would increase the back end -- depending on the progress of the back-end process, how much cleaning equipment will be used, but it's very difficult to give you the figures.
But as you mentioned, as you know, the cleaning equipment is very important in the packaging area. So the time of cleaning equipment in the back end are expected to increase. And therefore, we are talking about that this area is expected to increase and then so our packaging business will expand. This is our expectation. The specific outlook will be announced at the right timing. But at the moment, this is just the overview of our direction.
Thank you very much, Nakanomyo.
This is Wadaki. I have two questions. So, so far, about the year ending in March 2027, you said you expect a recovery in the second half, but you changed your expectation and you'll be very busy from the first half?
Yes.
And about the second question, so you mentioned the lower double digit expected 30% to 40% because the SEG's market growth expectation is 20%. And after that, the next day, part suppliers, the name was not given, but from the part supplier, there's a comment that much more growth can be expected. So I think the growth will be much greater than 20%. So do you think that 30% growth can be expected because of the current situation? But what do you think of the situation right now?
So the -- from the market, there was a talk about much larger figures. But the supplier of the clean room has to see the availability of the clean room as a supplier, including ourselves. So how much the actual growth will be have to wait another one or two months. So that when we come up with the guideline for the next year, we'd like to see more specifics. So you are seeing the very strong demand, but you want to avoid mentioning the specifics. Well, I do not say it's a very strange figures, but when I come up with the guidelines, I'd like to announce it to you.
Wadaki-san, thank you very much. SMBC Nikko, Mr. Hanaya, please.
I am Hanaya. The simple confirmation, the China's project. In my understanding, the profitability seems to be quite high. Has this been offset by another project with similar OP income and margin? Or is there any change in the costs? I would like to confirm this.
It's coming from the mix. In that case, not comparable, but the second half project, the -- even if the low OP margin one is coming in, but it can be offset -- it can offset. Not only for that, the cost reduction, the efforts produced the results. I hope you will understand in the ways that the project, which is shifted to the next fiscal year, the OP margin was high.
Thank you very much, Mr. Hanaya. And there was no more investors with questions. So it's a bit too early than scheduled, but let us close this earnings call for today. Thank you very much for your participation despite your busy schedule.
SCREEN — Q3 2026 Earnings Call
SCREEN — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon, everyone. Now we'd like to start the earnings call by SCREEN Holdings for the second quarter fiscal year 2026. And let me introduce you today's speakers. So we have Masato Goto, Representative Director, Member of the Board, President, Chief Executive Officer, this is Goto. And Yoichi Kondo, Director, Member of the Board, Executive Vice President, Chief Financial Officer.
And in addition to CEO and CFO, we have three executive members: Manabu Ishimura, Managing Executive Officer, this is Ishimura. And Akihiko Miyagawa, Senior Executive Officer, this is Miyagawa. And Chiho Otobe, Executive Officer, this is Otobe. Thank you very much for this opportunity. Now, we would invite Vice President Kondo to give us the presentation on consolidated business results and forecast. Mr. Kondo, microphone is yours.
Thank you very much. Let me give you the consolidated business results and forecast. First, this is the outline of the consolidated earnings for the first half. Net sales, JPY 274.2 billion. operating income, JPY 46.4 billion, and operating margin at 16.9%.
And year-on-year, the sales and profits both decreased. And SPE, sales and profits both fell year-on-year. And some of the projects’ revenue recognition was shifted to the second half. And this is the -- this is a decrease from the outlook in July.
So as for the full year forecast, we haven't changed it yet. And as for FT, sales and profits rose significantly year-on-year because of the strong display market, so the sales of OLED equipment increased. And on the balance sheet, the equity ratio is 64.4% has been stable. And this is the details of the consolidated earnings. So the net sales, JPY 274.2 billion; operating income, JPY 46.4 billion, OP margin at 16.9%, ordinary income, JPY 46.8 billion, net income, JPY 31.8 billion.
And this is the composition of group sales by destination. Japan, 16%; Taiwan, 25%, China, 40%; Korea, 5%; Asia, other, 3%; North America, 8%; Europe, 4%. And composition of group sales by segment: Other, 0.4%; PE, 1.8%; FT, 9.8%; GA, 9.3%; SPE, 78.8%.
And this is the consolidated earnings by segment. SPE in the first half, JPY 218.5 billion, and operating income was JPY 48.6 billion, OP margin, 22.3%. That is the sales and profit both fell because sales -- part of the sales shifted to second half.
And sales for DRAM and flash memory rose, the ratio of sales to China declined. Next is GA sales, JPY 25.8 billion, OP income, JPY 1.2 billion; OP margin, 4.7%. Sales grew while profits fell. That is because of the impact of U.S. tariff and FXs. FT, net sales, JPY 23.5 billion; OP income, JPY 3.9 billion; OP margin, 16.9% sales and profits both grew.
[indiscernible] sales increased, and we could achieve the significant improvement in the OP margin. And PE, JPY 5.5 billion in sales, minus JPY 0.2 billion in OP income as a loss. And sales and profits both fell, expecting capital investment to recover in the second half and onward.
And this is the financial standing, and this is the balance sheet on a consolidated basis. And total asset is [indiscernible] billion, so it increased and equity ratio now stands at 64.4%. So it's been quite stable. And this is the cash flow on a consolidated basis.
In the second quarter, operating cash flow amounted to JPY 23.8 billion, and we've spent JPY 2.5 billion for the investment. So we have the finance cash flow of the JPY 21.2 billion. And second -- first half, that operating cash flow is JPY 30.8 billion and investment cash flow was minus JPY 12.2 billion and financing cash JPY 18.5 billion and financing cash flow was minus JPY 29.9 billion. That is used for the dividend payment and investment.
Next is R&D expenses, CapEx and depreciation, amortization. So R&D is JPY 38 billion; CapEx, JPY 28 billion; depreciation and amortization, JPY 15 billion. So there's no change from the April figures. Mainly with SPE, the R&D expenses and personnel expenses are in line with our expectation. And CapEx for the R&D, manufacturing, IT all landed at expected range.
And this is the analysis of operating income growth. So against the last year's first half, we made a comparison against JPY 58.2 billion because of the sales capacity utilization and there's some shift to the second half and also the profitability. There was a big impact from the shift to the second half, and there was a minus JPY 9.5 billion impact on the fixed cost. So it stands at JPY 46.4 billion.
And there's a contribution by FT and GA, but there is a shift in SPE and profitability, a decline in GA. And fixed cost increased due to the growth investment mainly attributable to SPE, including R&D expenses, personnel expenses, depreciation, amortization and exchange rate mainly impacted negatively on GA.
And this is the business forecast. So on the right side, you can find the full year forecast. So net sales, JPY 621 billion; OP income, JPY 170 billion; OP margin, JPY 18.8 billion; and ordinary income, JPY 170 billion; and net income, 88%, no change from the original forecast. SPE, JPY 102 billion and OP JPY 121 billion and 2.4% of OP margin, GA, JPY 53 billion, JPY 2.5 billion of OP income; 4.7% of margin, no change. And FT now forecast for net sales, the change to the JPY 40 billion, and this is because of the actual performance, the change was made. And PE, no change. Net sales, JPY 50 billion and OP income plus JPY 1 billion. FT increase is adjusted. So there's no change in the total figure. This is the current situation we have. And this analysis operating income loss forecast. So the -- this is the actual against the forecast.
So last year, JPY 135.6 billion, and there was a plus JPY 2 billion from the sales and capacity utilization, but there was an impact from the FX and inventory. So profitability is an improvement of the JPY 2 billion and the fixed cost is JPY 19.5 billion, same figure from the previous report. And there's a minus JPY 3 billion impact from the exchange rate. So when you see the actual situation in the first half, we have slightly changed the figures for the exchange rate. And so the expectation is under JPY 17 billion.
On the right side, expect to contribution by FTGA and PE for the sales and capacity. And as for profitability, we have the FT and SPE contribution. And fixed cost increase expected due to the growth investment, mainly in SPE, as I mentioned earlier.
And exchange rates, as you can find, these are the expected exchange rates. So we maintain the forecast and interim dividend will be as per plan JPY 123 and the year-end dividend will be JPY 157, so total will be JPY 280. So we don't change this expectation. So that's all from myself.
Thank you very much, Mr. Kondo. Now we want to move on to the business environment and outlook from President, Mr. Goto.
So now I'm going to talk about business environment and outlook. So fiscal year 2026 March. This is the full year outlook. SPE, the leading-edge node foundries and memory-related sales centered on HBM remains solid, taking advantage on AI-related capital investments. So this is the basic situation of SPE.
And FT segment, as we mentioned earlier, we are seeing good performance in sales and profits expected, supported by active display investment for OLED and LCD. And advanced packaging, sales and projects for panel-level equipment, including panel coaters and direct imaging systems and wafer-level equipment for cleaning are progressing as planned.
And we are making the steady implementation of growth investment, centering around advanced packaging. So for this, in next midterm plan, we are going to make a further growth about this. This is SPE business overview.
The market trend and outlook. WFE, the calendar year 2025, we are expecting low single-digit growth. So around JPY 110 billion or above. In calendar year '26, continued growth is anticipated, primarily driven by AI-related demand for leading-edge node foundries and memory. So maybe second half next year, we are going to see some movement.
And the investment by application. Foundry, AI-related demand is again significantly driving investment, not only in Taiwan, but other regions, AI-related demand for cutting-edge device is progressing. And logic, so capital investment logic. The client remain a cautious approach towards capital investment. And memory, so spot price is now going up.
And DRAM is expected to sustain solid investment and also NAND is also very strong. And as to DRAM, there are new areas such as OpenAI, which is driving demand. So we will see continuous progress on this investment. And NAND investment will mainly focus on increasing multilayering and image devices. The CapEx for image devices, looking at market condition, we are going to make the decision cautiously.
For now, we need to still examine further investment. In power device and others, industrial or automotive demand remains weak, particularly in China and recovery is expected from calendar year '26 and onward. And the advanced packaging, the further capital investment are anticipated driven by greater sophistication in back-end processes. So China market, the investments by existing foundries remain solid.
While emerging chip manufacturers, they are gradually entering into the evaluation phase. So looking at this evaluation progress, we will consider how we will make investment. So for China market, probably the existing foundry is the main area where we see investment. The SPE, this is the sales by application and for sales. As you can find, in Q-on-Q, sales to DRAM increased. Year-on-year, sales to DRAM and foundries increased.
In Foundry segment, in second quarter is 48% and logic is 4% and flash is the same, 4%; and DRAM is 80%. And others, power device is 1%, other is 4%. Post-sales is 21%. That's the trend or breakdown of the second quarter.
And SPE, this is sales by destination. So Japan is 14% and Taiwan is 30%. It's slightly coming down from 1Q first quarter, and China is 38% and Korea is 5%. And Asia, other, and Oceania is 3%. North America is 7% and Europe is 4%. So Q-on-Q, sales to China and Japan rose. And year-on-year, sales to Taiwan and Japan increased. That's the situation of now. So this CSP conversion of sales by application forecast.
So post-sales, and you can find this year-on-year forecast. Out of 502, foundry account for 45%, logic 7%; and flash 4%; DRAM 16%; and imaging device 2%; power device 2% and other 5%; and post-sales 18%. That's the breakdown of the forecast. So for the first half, the DRAM flash increased slightly. And against forecast of second half versus first half, DRAM, logic and other expected to increase. In year-on-year, DRAM expected to increase.
So here's SPE composition of sales by destination. And here's the forecast. The sales is 502 and Japan account for 11% and Taiwan 24%; China 43%; and Korea 6%; and Asia-other, Oceania 6%; North America 7%; and Europe 3%. So compared to last year, the Taiwan increased significantly. That's the trend of year-on-year.
And against first half, sales to China are expected to increase in second half. And against full year of last year, sales to Taiwan expected to increase. So here's the GA segment sales trend and forecast. So the recurring business remains stable. So this has about half. And while affected by U.S. tariff policies, efforts are underway to enhance profitability through operational efficiency and price pass-through. This is FT sales trend and forecast.
So compared to last year, we saw significant improvement. The sales is JPY 46 billion. And about half is coming from OLED new investment and 25% is LCD. This is conventional and the remaining is post sales and other. So this situation is going to continue -- actually continue in the second half, and it's going to continue next year.
This is the PE sales trends and forecast. So for PE segment, market itself still takes time to recover. And sales is JPY 15 billion expected and of which 45% is post-sales and equipment and others accounts for another 55%. So the market sees a sign of recovery, but we have to wait until next year and beyond to see the actual contribution. So we'll continue to see the recovery of sales with cost of sales. And this is the initiatives related to ESG.
So about the social contribution, we had the revision of the partners building declaration. So following the change of the policy of the small and medium enterprise agency, the regulation previously issued by Holdings on behalf of the entire group has been revised to separate declarations for Holdings and each business entity. So for SPE, GA, FT and PE for each segment, we will have the declaration of the partnership.
Next is about governance. So we conducted a large-scale BCP drill. So the largest scale natural disaster may occur. So in anticipation of such, this drill was conducted. And this time, with the simulation of the megaquake of the Nankai Trough occurred, we had a drill simulating initial emergency actions immediately after the disaster and a total of 260 participants exercised in this drill, including the emergency infrastructure, including the communication efforts was confirmed and after a certain period after the disaster, how to continue the business was exercised with 260 participants.
And we will continue to have this kind of drill, so that we can be well prepared against disasters. And these are the SCREEN Group news. And you may have heard these news through the news releases. As you can see here, we have the releases of these news. And I'd like to elaborate one of them.
First is about CapEx. So this is the one about which we released the news release. That is about the acquisition of an R&D business in wafer bonding from Nikon. And it was agreed upon a contract was signed on September 30. And this is a strategic investment we make. So we position advanced packaging as a focus field. So in addition to the sales of the direct imaging systems and coater/dryer systems, we are working on development and rollout of the hybrid bonding and low-temperature wafer bonding. This is the purpose of this acquisition.
And with this acquisition, we can combine Nikon's know-how about the precision bonding with our technology, so that we can establish our presence in the field of the advanced packaging, which is a focus in the midterm management plan. And about the overview of the acquisition, you can find the information in the material. And for the advanced packaging, seeking more than more, as you can find here, the bonding is very important. We're getting more and more important. And the impact of the heat has to be minimized when we have the bonding. So we have the copper-copper low-temperature hybrid bonding being developed.
So our technology and Nikon's bonding technology will be combined so that we can make a new presence in this market. And we have been collaborating. We have been working on the hybrid bonding machine, and we will make the further development of this, so that we can have a greater presence in this market.
Next topic. So we have the variety of collaboration with IBM. And this time, we have the agreement for next-generation EUV lithography cleaning process development is the additional agreement. So 2 nanometer beyond mature process requires the High-NA and related miniature cleaning technology is required. So in collaboration with IBM, we will establish this process. So for the next-generation device, cleaning process is essential, and we will work together with IBM to establish or to develop the necessary cleaning process. And this is a contract we concluded.
And next topic, SCREEN Holdings was awarded 2025 Porter prize. And Hitotsubashi Business School post this Porter prize, and we applied for it and our product process and innovation related management were acknowledged. And we were awarded Porter Prize this time. And before having this articulation, various initiatives we took and uniqueness and strategic points of these were highly appreciated. That's the reason why we could have this price.
And on December 2, the prize awarding ceremony will be held. So this is an announcement we made. And we have other topics, but as for the others, please refer to the material. That's all from me.
Thank you very much. Now I would like to go into the Q&A session. So I'd like to invite Ms. Otobe.
The announcement from IR, annual report 2025 was issued at the end of September. So it's not about the short-term view, but the mid- to long-term strategy is now compiled in this annual report under the new management structure launched in June 2025, and you can find the actual words by the management team. Next page, please.
And every time after the earnings call, we have the small group meetings to be hosted by SCREEN. And Japanese one is on November 21 and English one is on November 19. So please utilize these occasions. And lastly, about the IR days. On December 16, Tuesday, starting at 3:30, on-site registration starts from 3:00. And at our Monzen-Nakacho site in Tokyo, we are going to have this IR Day. And we also provide the hybrid-type meetings.
So when you make yourself available, please come to our Tokyo office, but you can also attend this meeting online. And we're going to talk about our growth strategy. And we will have the Monzen-Nakacho President as a speaker, and we can talk about the SPE technologies, too. So please utilize this opportunity. So I want to have your kind attendance to this event. That's all from me.
Now I'd like to go into Q&A session. From Morgan Stanley, Mr. Wadaki.
2. Question Answer
So this is Wadaki from Morgan Stanley MUFG. I have one question to you. So WFE forecast on '26, you are saying the low single digit. But at this moment, what's the situation? Maybe compared to 3 months ago, is it improving or?
Yes, I'm Goto. I'm going to respond. For our outlook, there's no major change from previous expectation. So next year -- growth next year will be low single digit. This is our assumption. So maybe memory and DRAM still, the capacity is not sufficient. And foundry utilization is now getting higher. So we think it's getting better. But still, even with these kind of changes, you don't change your forecast, right? The next year growth, even if it happens, maybe second half of next year, we will see the effect.
So if we look at -- consider next year, the growth will be maybe like low to mid-single digit. After like, next year, there is a possibility to go up. But for next fiscal year, we don't think there will be a major change from previous forecast.
My second question is, so first half, there was push out of the sales. So you couldn't achieve the forecast. So this is by destination. So China is the reason. That's what I can understand. But this China second half, is it going to be postponed to next fiscal year? I feel some like no concern. Is there any possibility that this is postponed to next fiscal year?
Well, as to possibility, of course, it's not 0. However, like second half, we are trying to achieve the sales this second half. So for year-on-year, we don't change the forecast, and we are now making progress. And in local, we are confident that we can make the sales by the end of this fiscal year.
Maybe last year, you said probability of second quarter is still high, and now it's happening like this. So maybe the situation is different for each customer, but do you have any concrete situation like installation is already ready or you have the commitment from top executive of the customer.
We are under negotiation right now, and we don't think it's bad. That's the situation. So we cannot say we are sure at this moment. So we are feeling a great sense of the confidence while contacting with our customer.
Next, from Goldman Sachs, Mr. Nakamura, please.
My first question is about the profitability of SPE. So the sales was pushed out to the second half, but I want to know about this low profitability, operating profit in the second quarter. So SPE sales hasn't changed from the first quarter, but the profitability decreased. What is the background of this? And in the second half, 25% or more is planned. And would you elaborate on this?
So the first half will be margin seems a bit low because the product mix and customer mix impacted. And in the second half, as you mentioned, 25% is a target, and that is better than the first half. And the activity to improve the profitability is now taking place. So even with a change in the product mix, we may not be -- we will secure the profit better than in the past.
My second question about the sales of the sales outlook for this fiscal year of SPE. So total expectation hasn't changed. But by the destination, I think you -- a little bit changed the composition. So could you explain these changes you made?
Especially the sales to China, originally, it was 40%, but it has declined. So I think there were some projects pushed out to the second half. So could you elaborate from where you have the inquiries? And for the next fiscal year, what percentage of the sales do you expect from China? Do you see any -- do you have any outlook?
So China sales, the major cause is the -- some projects pushed out to the second half. That's why we see the big sales in second half. And other sales at this moment, we have good visibility about the second half sales composition. So based on that, we will review the sales and the production plan, and that's how we come up with these figures.
And about next fiscal year, China sales proportion will be -- slightly decline to a little bit over 30%. So as we have been saying, the emerging customers in China will go back to the normal situation. And then our sales to China will go back to the 30% level. So please understand in that way.
So the sales to China outlook was a little bit slightly increased. What do you think of this?
So as was mentioned earlier, now we are reviewing the card inquiry we received and the -- some sales shifted to the second half. And based on that, we came up with these figures. So the inquiry is by the major foundry, the customers with which we have a long relationship, and we now expect the sales from that customer in the second half of this fiscal year.
Next is Shimamoto San from Okasan.
I am Shimamoto from Okasan Securities. WFE 2026, I want to understand the forecast better. In previous discussion, the forecast for next year is the maybe mid-single digit, maybe around 5%. Is it correct? And in addition, the application foundry or memory, maybe you can separate DRAM and NAND and logic. Can you just give us the breakdown for each application?
So as to numbers, it's the mid-single digit. This is our expectation. So the trend by application, as they said, the cutting-edge 2-nano or 3-nano CapEx will continue next -- like second half next year. This is what we are expecting. So foundry portion is going to lead. And also memory and DRAM HBM will be the main investment target. This is what we are expecting for next year. So memory, DRAM is going to lead the demand.
So foundry and DRAM, which is going to grow fast. Can you comment on that?
It's not easy. Probably they will grow at the same rate. That's our expectation.
So my second question is Nikon business, the impact for your result, if you are expecting any for this year or next year -- fiscal year?
Yes. This business transfer impact, so this is within our strategic investment budget. So there is no major impact for this fiscal year or next fiscal year.
This is Otobe speaking. I want to just add on to that. What Goto said is true. And this fiscal year, JPY 3 billion transfer price, that's what we are expecting. And it is -- it's going to take maybe a couple of years until launch. So maybe JPY 5 billion to JPY 6 billion R&D investment is expected. This budget is already included in the growth strategy in midterm plan, as Mr. Goto explained.
So it's already included in the -- so it's not going to be addition?
That's correct. That's correct.
Now let me invite Mr. Yoshida from CLSA Securities.
This is Yoshida. So second half SPE sales, so in the third and the fourth quarter, when we divide the sales expectation, how do you see them? And WFE next year, you have an image that it will continue to recover into the second half. And from this fiscal year to second half to the first half of next year, how do you see the situation?
So let me have the image of the time line. So as for the sales for this fiscal year, the fourth quarter's one will be greater than the third quarter. So the sales when you compare the third and the fourth quarter, the one in the fourth quarter will be greater.
And as for the next fiscal year, as you mentioned, in the first half of next fiscal year, we expect -- as we did for today and this year, [indiscernible], but the exact investment plan will be carried out in the second half. So we expect the recovery -- full recovery in the second half of next year.
In that sense, so competitors count the sales when they ship the product, but you count the sales in the installation. So it's a kind of difference of 1 quarter. So when we complete the installation, we count the sales. So from the timing of the shipment to the installation, there's a kind of time lag.
So compared to the other companies who count the sales at the time of the shipment, the timing of the counting sales will be a bit different.
My second question is about the IR Day and in which are you going to talk about what you want to be in 10 years from now? And what other things are you going to talk about on the occasion of IR Day in December?
So if we disclose everything, I cannot give you the good motivation to come. So please come to this event. If you cannot make us available physically, you can use online system. So you can hear from us about what we want to achieve in 10 years from now. So what would be the focus areas for us and what would be the focus technologies we should have. And we'd like to talk about these as much as possible on this occasion.
So please kindly make yourself available to come to this event and ask questions on that occasion. So at this moment, I'm sorry, we cannot talk about the details of the topics on IR Day. Thank you. So I'm going to attend this meeting. Thank you.
So Hirakawa-San from BofA. Would you please?
I'm Hirakawa from BofA. My first question is about memory. The market is now recovering and maybe second half of next year, you can have some expectation -- good expectation. But cutting-edge logic, so now we are seeing only one strong giant, but surrounding company are also seeing some movement.
So when you are making negotiation compared to 3 months ago, is there any difference or more motivation for investment or appetite for investment you see better compared to 3 months ago?
The foundry leading the cutting edge, you are familiar, I believe. But other than this company, there are some foundries, which are doing the Tesla project or the American large logic maker, they have been struggling. However, now they are trying to start it to recover. So market overall is getting more-stronger. So not only Taiwan, but as it states here, the North America has also become another strong point -- stronghold of the logic manufacturing. So from next -- second half next year, we are expecting good recovery.
So as a follow-up, are you receiving any inquiry already?
We cannot talk concretely at this moment. However, as a trend, we are seeing that kind of trend already.
My second question is maybe due to my ignorance. Within your presentation, you are now changing the price of SPE. What do you mean by this?
So we are increasing the cost. So we are now trying to pass on to the price to customer. This is the effort that we have been making. And now this is getting fruit. So now we are seeing the improvement of the SPE profit margin towards second half.
So this passing on to the price, if cost increase 100, so how much can you recover? So until second half of this year, how far can you recover out of 100 of the cost increase that you have already experienced?
So as you know, the raw material cost increased by 25% for the last 3 years. This is the consensus of the society or the industry. And all of this 25%, we hope we can pass on to our equipment plants, but we cannot do that. So at least half we want to recover. And in order to do that, we are making a lot of projects. So now we are approaching to our target. This is what I want to share.
Next from Jefferies Securities, Mr. Nakanomyo, please.
This is Nakanomyo from Jefferies. Can you hear me?
Yes, we can. [Operator Instructions].
And I have one question, and let me confirm this point. So next year, WFE will achieve the mid-single-digit growth. That's what you explained. And when we see China alone, what is the outlook?
So China market itself will grow by the same level for this fiscal year or slightly better. That's how we expect.
So for FY '25, how do you see the China market?
So FY '25 China market, so it's been flat. So compared to the previous year, it's been flat. So when I see the sales, you review the figures. And so maybe there's a difference between dollar and yen terms, but it dropped by about 5%.
And the sales of next year sales in China will be flat like the development of the market itself?
So as I mentioned earlier, next year's sales, China's proportion will be about higher than 30s or close to 40%. So compared to this fiscal year, proportion to be a little bit smaller, but absolute value will not change so much.
The reason why I ask this is because in our case, as you explained, you have the slower investment by the emerging customers. So do you expect these emerging customers will begin to move in next fiscal year so that you can expect the stronger sales in China in next fiscal year?
So as for the emerging customers, we do not plan ourselves with a dependence on these emerging customers. So emerging and existing customers in China, we took the good balance. So if the emerging customers make the bigger investment than we expect, we could have the stronger sales than expected. But next fiscal year, following this fiscal year, we expect the China market will be flat. This is the current situation.
Shibano-San from Citigroup.
I am Shibano from Citigroup Securities. SPE per destination, I want to make confirmation and the expectation for next year.
So Japan SPE, the assumption for second half, it's like significantly reduced, and I want to know the reason.
And Nakamura-San asked a question about Chinese sales. Compared to 3 months ago, there is -- you are seeing some increase for logic and foundry, is it correct that it's increasing for logic and foundry? And maybe JPY 30 billion delay from first half, is it from first company, mostly from one company or maybe from a couple of companies?
So first of all, this Chinese sales delay, it's not easy to disclose in detail. I think you may know some customer is now delaying. The difference between first and second half is due to that. This is what you can use for calculation to understand the impact.
And Japanese customer, some Japanese customer like image Element or legacy node investment it's now slow and it's been down. That's the situation of now. The Taiwanese customer in Kyushu, we count as Japanese destination. So in total, the kind of product mix we are now having.
Understood. Very clear. So next fiscal year, WFE is mid-single digit. So China portion is drastically dropping from 40-some percent to 30-some percent. So on a consolidated basis, the sales and profit increase can be expected? Or maybe if you look at like next fiscal year, single, it's not easy. Can you share your feeling right now?
Well, we have been working on to improve profitability. And of course, China we have -- if we see more profitable customer, we can see the increase. However, we are not relying heavily on that, and we have been working on the improvement in other areas, and we are now seeing the fruit.
So portion, even if the portion of China drops that much, we are confident that we can secure profit. So the midterm plan that we have committed, we are confident to clear, and we are preparing for next midterm plan already. So we don't think we see drastic decrease due to this market trend of China.
It seems there is no other person with questions. Let us close the Q&A session now. And this concludes the earnings call by the SCREEN Holdings for the second quarter of the year ending in March 2026. And thank you very much for your participation despite your busy schedule.
SCREEN — Q2 2026 Earnings Call
Financial data from SCREEN
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 591,738 591,738 |
6%
6%
100%
|
|
| - Direct Costs | 366,400 366,400 |
7%
7%
62%
|
|
| Gross Profit | 225,338 225,338 |
4%
4%
38%
|
|
| - Selling and Administrative Expenses | 112,833 112,833 |
11%
11%
19%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 127,666 127,666 |
12%
12%
22%
|
|
| - Depreciation and Amortization | 15,162 15,162 |
15%
15%
3%
|
|
| EBIT (Operating Income) EBIT | 112,504 112,504 |
15%
15%
19%
|
|
| Net Profit | 85,806 85,806 |
12%
12%
15%
|
|
In millions JPY.
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Company Profile
SCREEN Holdings Co., Ltd. manages its group companies, which are engaged in the manufacture and sale of semiconductors and printing equipment. It operates through the following segments: Semiconductor Equipment (SE), Graphic and Precision Solutions (GP), Finetech Solutions (FT), and Others. The SE segment develops, manufactures, sells, and maintains semiconductor manufacturing equipment. The GP segment deals with printed circuit boards and printing-related equipment. The FT segment oversees the production and maintenance services of flat panel display manufacturing equipment. The Others segment includes development of software; manufacture and sale of life science field equipment; and planning and production of printed materials. The company was founded on October 11, 1943 and is headquartered in Kyoto, Japan.
StocksGuide Premium
| Head office | Japan |
| CEO | Mr. Hiroe |
| Employees | 6,884 |
| Founded | 1943 |
| Website | www.screen.co.jp |


