SCREEN Holdings (7735) investor relations material

Executive summary

• Net sales for Q1 FY2027/03 were JPY 121.7 billion, down 10.3% year-over-year, with operating income at JPY 14.3 billion, down 41.1% year-over-year, mainly due to lower SPE segment performance and higher fixed costs.

• Profit attributable to owners of parent fell 37.1% to JPY 10.4 billion.

• Record-high orders received led to an upward revision of full-year forecasts and annual dividend plan.

• Comprehensive income rose 33.1% to JPY 26.6 billion, driven by gains in valuation of available-for-sale securities.

Financial highlights

• Net sales: JPY 121.7 billion (-10.3% YoY); operating income: JPY 14.3 billion; ordinary income: JPY 15.4 billion; net income: JPY 10.4 billion.

• Operating margin for Q1 was 11.8%, down 6.2 points year-over-year.

• Equity ratio stood at 64.6% as of June 30, 2026.

• Free cash flow for Q1 was negative at JPY -0.9 billion; operating cash flow was JPY 9.0 billion.

• Capital expenditures increased to JPY 17.8 billion, up 299.9% year-over-year.

Outlook and guidance

• Full-year net sales forecast raised to JPY 743 billion, operating income to JPY 156.5 billion, and net income to JPY 115 billion.

• Dividend forecast for FY2027 revised to JPY 183 per share (post-split basis).

• Strong demand expected in AI, memory, and logic segments; WFE market growth projected at ~20% for 2026 and 2027.

• Continued R&D and CAPEX planned to capture market expansion and drive future growth.

• Post-sales expected to exceed JPY 100 billion for the first time this fiscal year.