Sumco (3436) investor relations material

Executive summary

• Q2 2026 sales reached JPY 113.6 billion, exceeding the forecast by JPY 1.6 billion and up JPY 12.2 billion sequentially, with EBITDA margin at 26.9%, above the 26% forecast.

• Operating profit improved to -JPY 1.1 billion from forecast but remained negative; net loss attributable to owners was -JPY 4.4 billion, a sequential improvement.

• Strong AI-driven demand led to record 300 mm wafer shipments, with 200 mm wafers showing gradual recovery.

• Customer inventory adjustments are ongoing, with some customers increasing inventory due to supply concerns.

• The company focused on maintaining high market share in advanced products and improving cost competitiveness through AI-driven productivity enhancements.

Financial highlights

• First-half FY2026 net sales totaled JPY 215 billion, up 4.7% year-over-year.

• First-half operating profit was -JPY 6.3 billion, down year-over-year; EBITDA for the half-year was JPY 53.9 billion.

• Q2 net loss attributable to owners: -JPY 4.4 billion; first-half net loss: -JPY 12.8 billion.

• Basic EPS for the half-year was -JPY 36.87, a decline from the prior year.

• Interim dividend set at JPY 10 per share.

Outlook and guidance

• Q3 sales forecast: JPY 118 billion, with operating profit expected to break even and EBITDA margin projected to rise to 28.6%.

• Full 9-month net sales forecast at JPY 333 billion, up 9.4% year-over-year.

• Ongoing strong demand for 300 mm wafers for AI and server SSDs, with full capacity utilization anticipated in Q4.

• No plans to restart greenfield projects unless wafer prices rise significantly.

• Risks from geopolitical factors and procurement costs are being closely monitored.