SCREEN Holdings (7735) Q3 2025 earnings summary

Executive summary

• Achieved record highs for Q3 cumulative net sales, operating income, ordinary income, and net income, with both sales and profits increasing year-over-year, driven by strong performance in the SPE segment, especially in China and Korea.

• Year-on-year, revenue increased by JPY 112.1 billion, operating profit by JPY 36.9 billion, and net profit by JPY 24.9 billion.

• Full-year forecasts for revenue, operating income, ordinary income, and net income have been revised upward, with all expected to hit record highs for the fourth consecutive year.

• Dividend forecast raised to a record JPY 283 per share, with a payout ratio target of 30%.

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

Financial highlights

• Q3 cumulative revenue: JPY 459.9 billion, up 32.2% YoY; operating profit: JPY 100.6 billion, up 58.0% YoY; net profit: JPY 69.5 billion, up 55.9% YoY; OP margin: 21.9%.

• Equity ratio improved to 61.4%.

• Free cash flow for Q3: JPY 44.4 billion; operating cash flow: JPY 44.4 billion.

• Gross profit reached JPY 173.5 billion, up from JPY 127.9 billion YoY.

• R&D expenses increased 14.5% YoY to JPY 22.5 billion.

Outlook and guidance

• Full-year revenue forecast: JPY 616 billion; operating profit: JPY 126 billion; net profit: JPY 91.5 billion; OP margin: 20.5%.

• SPE revenue forecast: JPY 510 billion, OP margin: 25.5%.

• Dividend forecast increased to JPY 283/share, a record high.

• R&D expenses planned at JPY 33 billion; CapEx at JPY 28 billion, with heavier investment in the second half.

• Expect steady demand in the first half of next fiscal year, with some uncertainty in the second half, especially regarding China.