SCREEN Holdings (7735) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY2026 were JPY 425.3 billion, down 7.5% year-over-year, with operating income at JPY 77.4 billion and net income at JPY 54.9 billion, reflecting a decline in equipment sales and increased fixed costs.

• Both sales and profits declined year-over-year, but recovery is underway, especially in SPE and FT segments, supported by strong demand in foundries, memory makers, and OLED equipment.

• The global economy showed moderate recovery, but uncertainty persists due to U.S. trade policies and regional stagnation.

• A large-scale China project was deferred to next year, but the full-year outlook remains unchanged.

Financial highlights

• Q3 operating margin was 18.2%, with net margin at 12.9% and gross profit margin at 37.5%.

• Net income attributable to owners of parent was JPY 54.9 billion, down 21.0% year-over-year.

• Free cash flow for Q3 was JPY 4.5 billion; cumulative operating cash flow JPY 40.5 billion.

• Cash and cash equivalents at period end were JPY 183,024 million, a decrease from March 31, 2025.

• Sales by region: China 39%, Taiwan 19%, Japan 14%, South Korea 8%, North America 8%, Europe 5%.

Outlook and guidance

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

• SPE sales forecast at JPY 502 billion, OP margin 24.1%.

• Dividend outlook unchanged: annual dividend JPY 280, payout ratio ~30%.

• No revision to previously announced earnings or dividend forecasts.

• Market expects mid-single digit WFE growth in 2025 (~$115B), with low double-digit growth in 2026.