TOWA (6315) Q3 2026 earnings summary

Executive summary

• Net sales for 3Q FY2025 were ¥369.3 billion, down 5.9% year-over-year, with operating profit down 43.5% to ¥36.8 billion and net profit down 49.0% to ¥26.2 billion, mainly due to U.S. tariffs, weak automotive semiconductor demand, and product mix changes.

• Orders in 3Q FY2025 reached ¥196.2 billion, the second-highest quarterly level, driven by AI and data center demand, especially for memory and advanced packaging applications.

• Comprehensive income rose to ¥7,588 million, up 98.2% year-over-year, due to foreign currency and securities valuation gains.

Financial highlights

• 3Q FY2025 net sales: ¥369.3 billion (down 5.9% YoY); operating profit: ¥36.8 billion (down 43.5% YoY); ordinary profit: ¥36.9 billion (down 47.8% YoY); net profit: ¥26.2 billion (down 49.0% YoY).

• Operating margin declined from 16.6% to 10.0% year-over-year.

• Orders for 3Q FY2025 were strong at ¥196.2 billion, with a December-end backlog of ¥327.9 billion.

• Basic earnings per share were ¥35.02, reflecting a stock split.

• Equity-to-asset ratio at 66.6%, down from 73.8% at prior fiscal year-end.

Outlook and guidance

• Full-year FY2025 net sales forecast revised down to ¥545.0 billion (up 1.9% YoY), with operating profit forecast at ¥70.0 billion (down 21.2% YoY) and profit attributable to owners at ¥4,950 million (down 39% YoY).

• Forecast revision attributed to delayed mass production investments in memory and a higher proportion of long lead-time evaluation equipment orders.

• Profit margins expected to gradually improve as compression equipment orders increase.

• Despite lower forecasts, order backlog and demand for AI/data center applications are expected to support future performance.