SCREEN Holdings (7735) Q2 2026 earnings summary

Executive summary

• Net sales for the first half were ¥274.2 billion, down 1.1% year-over-year, with operating income at ¥46.4 billion, a 20.2% decrease, and an operating margin of 16.9%, mainly due to project revenue shifts and higher fixed costs.

• FT segment saw significant year-on-year growth in sales and profits, driven by strong OLED and display market demand.

• SPE segment sales and profits declined due to revenue recognition shifting to the second half.

• Equity ratio remains strong at 64.4%, with net assets reaching ¥429.5 billion.

• The company maintains its full-year forecast, expecting recovery and growth in the second half, especially in SPE and FT segments.

Financial highlights

• First half net sales: ¥274.2 billion; operating income: ¥46.4 billion; net income: ¥31.8 billion, all down year-over-year.

• Operating margin for the first half was 16.9%, down 4.1 points year-over-year.

• Equity ratio at 64.4%; net assets per share increased to ¥4,542.66.

• Operating cash flow for the first half: ¥30.8 billion; investment cash flow: ¥-12.2 billion.

• R&D expenses: ¥38 billion forecast for the year; CapEx: ¥28 billion; depreciation and amortization: ¥15 billion.

Outlook and guidance

• Full-year forecast unchanged: net sales ¥621 billion, operating income ¥117 billion, net income ¥88 billion.

• Segment sales forecasts: SPE ¥502 billion, GA ¥53 billion, FT ¥46 billion, PE ¥15 billion.

• Dividend forecast maintained at ¥280 per share, with a payout ratio target of 30% or above.

• WFE market expected to grow at low to mid-single digits, driven by AI-related demand and memory investments.

• Display market remains active, supporting FT segment growth.