SCREEN Holdings (7735) investor relations material

Executive summary

• Net sales for FY2026/03 were ¥605.7 billion, down 3.1% year-over-year, with operating income at ¥122.5 billion, down 9.7%, and profit attributable to owners at ¥92.0 billion, down 7.5%.

• Sales and operating income declined year-on-year, mainly due to lower performance in the SPE division.

• Despite the decline, SPE order intake reached record highs in Q4 of the previous year and remained strong into Q1, with expectations for continued strength in Q2.

• Operating margin was 20.2%, a decrease of 1.5 points year-over-year.

• Fiscal year-end dividend was raised to ¥170 per share, reflecting a strong commitment to shareholder returns.

Financial highlights

• Gross profit for FY2026 was ¥233,174 million, with a gross margin of 38.5%.

• Fixed costs increased substantially due to investments for future growth, with one third of JPY 32 billion allocated to labor.

• R&D expenses increased to ¥37.7 billion, and CAPEX was ¥27.7 billion.

• Operating cash flow for the year was ¥92.7 billion, with free cash flow at ¥62.9 billion.

• Equity ratio improved to 67.4%, with net assets reaching ¥486.6 billion.

Outlook and guidance

• FY2027/03 forecast: net sales of ¥725.0 billion (+19.7%), operating income of ¥150.0 billion (+22.4%), and operating margin of 20.7%.

• All segments are expected to achieve steady growth, with significant increases in SPE and FT segments.

• Dividend forecast for FY2027/03 is ¥175 per share (post-split basis).

• Growth investments will continue, with record-high R&D and CAPEX planned.

• Gradual sales increase expected quarter-by-quarter, with a stronger second half.