Disco (6146) investor relations material

Executive summary

• Achieved record-high net sales of 436.9 billion yen, up 11.1% year-over-year, driven by strong demand for generative AI, high-performance semiconductors, and data center investments.

• Operating income reached a record 185.0 billion yen, with net income at 135.5 billion yen, both showing solid annual growth.

• Net income margin was 31.0%, and operating income margin remained robust at 42.3%.

• Achieved record-high profit for the sixth consecutive period.

• Annual dividend per share increased to a record 505 yen, reflecting robust profitability and surplus funds.

Financial highlights

• Gross profit margin remained high at 70.1%, slightly down from 70.6% the previous year.

• Free cash flow turned negative at -2.2 billion yen, mainly due to increased investments and a 100 billion yen outflow into time deposits.

• Total assets rose to 743.4 billion yen, up from 654.0 billion yen.

• Comprehensive income was 140.3 billion yen, up 13.1% year-over-year.

• Cash and cash equivalents at period end were 184.6 billion yen, down 44.6 billion yen year-over-year.

Outlook and guidance

• FY2026 1Q net sales forecast at 106.1 billion yen, with operating income of 42.0 billion yen and net income of 29.5 billion yen.

• Only one-quarter ahead guidance provided due to market volatility; shipment forecast for Q1 FY2026 is 132.0 billion yen.

• Shipment volume expected to remain strong, especially for generative AI-related applications.

• CAPEX for FY2026 projected at approximately 33.0 billion yen, with continued proactive R&D investment.