TOWA (6315) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 saw a significant decline in orders and net sales, with all profit levels recording losses due to weak demand and delivery schedule adjustments, especially in the semiconductor segment.

• Loss attributable to owners of parent was ¥528 million, compared to a profit of ¥1,690 million in the same quarter last year.

• Signs of order recovery are emerging in China, while other Asian regions remain cautious due to U.S. tariff policy impacts.

Financial highlights

• Net sales for Q1 FY2025 were ¥80.8B, down 39.0% year-over-year from ¥132.5B.

• Operating profit was a loss of ¥5.8B, compared to a profit of ¥22.1B in Q1 FY2024.

• Ordinary profit was a loss of ¥7.3B, and net profit was a loss of ¥5.3B, both sharply down from the prior year.

• Orders for Q1 FY2025 totaled ¥104.3B, down 20.2% year-over-year.

• Comprehensive income dropped 84.3% year-over-year to ¥351 million.

Outlook and guidance

• Expectation to return to profitability from Q2 onward, driven by a recovery in net sales and increased orders, particularly for next-generation AI-related equipment.

• FY2025 full-year net sales forecast is ¥560.0B, up 4.7% year-over-year, with operating profit projected at ¥98.0B.

• Orders are forecasted to increase in Q2 and remain strong through the second half.

• Initial full-year forecast remains unchanged.

• Profit attributable to owners of parent is forecast at ¥6,860 million for the year, down 15.5% year-over-year.