TOWA (6315) Q4 2026 earnings summary

Executive summary

• Orders reached 595.6 billion yen, the second highest ever, driven by AI and data center demand, especially for memory and advanced packages.

• Net sales hit a record 543.6 billion yen (¥54,365 million), up 1.7% year-over-year, with strong performance in semiconductor and singulation equipment.

• Despite higher sales, operating profit fell 22.1% to 69.1 billion yen (¥6,917 million), and net profit dropped 43.4% to 45.9 billion yen (¥4,593 million) due to product mix and initial delivery costs.

• The company faced a sluggish start due to U.S. tariff impacts but recovered in the second half as memory investment rebounded.

Financial highlights

• FY2025 net sales: 543.6 billion yen (+1.7% YoY); operating profit: 69.1 billion yen (-22.1% YoY); net profit: 45.9 billion yen (-43.4% YoY).

• Operating margin declined from 16.6% to 12.7% year-over-year.

• Gross profit decreased to ¥18,371 million from ¥19,907 million year-over-year.

• Comprehensive income surged to ¥10,690 million, up 172.4% year-over-year, mainly due to gains in available-for-sale securities and foreign currency translation.

• Cash and cash equivalents at year-end increased to ¥26,381 million.

Outlook and guidance

• FY2026 forecast: net sales of 640.0 billion yen (+17.7% YoY), operating profit of 102.4 billion yen (+48.0% YoY), net profit of 70.0 billion yen (+52.4% YoY).

• For FY2027, net sales are forecast at ¥64,000 million (+17.7%), operating profit at ¥10,240 million (+48.0%), and profit attributable to owners of parent at ¥7,000 million (+52.4%).

• Margins expected to improve with sales growth; focus on strengthening WLP market position.

• Stable sales anticipated based on strong order backlog and ongoing AI/data center investment.

• Annual dividend forecast for FY2027 is ¥24 per share.