SCREEN Holdings (7735) Q1 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating income, ordinary income, and net income for Q1 FY2025, with both sales and profits increasing year-over-year, driven by strong demand in semiconductor and related equipment.

• Upward revision of full-year and interim dividend forecasts, with annual dividend projected at a record ¥233 per share.

• All major business segments contributed to growth, with SPE (Semiconductor Production Equipment) leading gains, especially in China and Taiwan.

• Growth was led by robust capital investment in semiconductor miniaturization, packaging, and mature nodes.

• Strategic investments continue in R&D and new business areas.

Financial highlights

• Q1 net sales: ¥134.2 billion (+34.6% YoY); operating income: ¥27.7 billion (+106.9% YoY); OP margin: 20.7% (record high); net income: ¥18.2 billion (+93.2% YoY).

• Ordinary income: ¥27.8 billion (+¥14.2 billion YoY); comprehensive income: ¥23.98 billion (+45.1% YoY).

• Equity ratio improved to 60.5%.

• Operating cash flow: ¥-32.1 billion, mainly due to payment schedule shifts and tax payments.

• Cash and cash equivalents decreased by ¥51.4 billion to ¥144.0 billion.

Outlook and guidance

• Full-year FY2025 net sales forecast revised up to ¥564.5 billion; operating income: ¥105 billion; net income: ¥75 billion; OP margin: 18.6%.

• Interim dividend forecast revised upward to ¥109; full-year dividend target ¥233 per share.

• Upward revision for first-half forecasts; second-half forecasts unchanged due to pending details.

• Semiconductor market growth expected, driven by AI, DRAM, and leading-edge node investments.

• Foundry sales to decrease in the second half; OLED and display demand expected to drive FT segment recovery.