SCREEN Holdings (7735) Q2 2025 earnings summary

Executive summary

• Achieved record high first-half net sales and operating income, with both sales and profits increasing year-over-year, driven by robust demand in semiconductor and display equipment.

• Upward revision of full-year earnings and dividend forecasts, with interim dividend raised to JPY 120 per share and annual dividend forecasted at JPY 247 per share.

• Operating cash flow improved significantly in Q2, and net assets increased steadily due to accumulated profits.

• Growth supported by strong capital investment in semiconductor miniaturization, packaging, and display manufacturing recovery.

Financial highlights

• First half net sales: JPY 277.3 billion (up 24.2% YoY); operating income: JPY 58.2 billion (up 51.1% YoY, 21% margin); net income: JPY 38.8 billion (up 47.4% YoY).

• Gross profit margin improved, with gross profit at JPY 106.96 billion versus JPY 80.56 billion a year earlier.

• Equity ratio at 59.1%; net assets at JPY 395.2 billion, up 6.3% from March 31, 2024.

• Cash and cash equivalents at September 30, 2024, totaled JPY 198.44 billion.

• Operating cash flow for Q2: JPY 65.6 billion; free cash flow for 1H: JPY 33.4 billion.

Outlook and guidance

• Full-year sales forecast revised upward to JPY 577 billion (+14.3% YoY), operating income to JPY 113.5 billion (+20.5%), net income to JPY 80 billion (+13.3%).

• All major profit metrics expected to hit record highs for the fourth consecutive year.

• Dividend forecast for FY2025 revised to JPY 247 per share (post-split basis).

• R&D and CapEx to focus on SPE and new business fields, with increased investment planned for 2H.

• China sales ratio projected to decline to 30% in FY2026, but absolute sales volume to grow.