Sumco (3436) investor relations material

Executive summary

• Q1 FY2026 net sales were ¥101.4 billion, with an operating loss of ¥5.2 billion and a net loss of ¥8.4 billion, reflecting declines due to weak non-AI demand and volume/mix effects.

• Sequential improvement is forecast for Q2, with sales of ¥112 billion and a narrower operating loss of ¥2.5 billion, driven by higher volumes and favorable forex at ¥160/USD.

• Strong AI-related demand continues to support 300mm wafer shipments, while 200mm and smaller wafers remain weak due to sluggish end-market demand and ongoing inventory adjustments.

• Dividend policy remains unchanged, with an interim dividend of ¥10 per share planned, supported by retained earnings and cash flow.

Financial highlights

• Q1 sales: ¥101.4 billion; operating loss: ¥5.2 billion; ordinary loss: ¥7.9 billion; net loss: ¥8.4 billion; basic EPS: ¥-24.22.

• EBITDA for Q1: ¥23.4 billion; EBITDA margin: 23.1%, down year-over-year and sequentially.

• CapEx for Q1: ¥9.4 billion; depreciation: ¥30.8 billion.

• Q2 forecast: sales ¥112 billion, operating loss ¥2.5 billion, net loss ¥7 billion, depreciation ¥33.7 billion; EBITDA margin expected to improve to 26%.

Outlook and guidance

• Q2 performance expected to improve sequentially due to higher volumes and yen depreciation; 300mm wafer demand for AI and DRAM projected to remain strong.

• Non-AI and 200mm segments expected to recover gradually, but overall recovery remains slow.

• No specific guidance on timing for return to operating profit; six-month forecast anticipates continued losses despite sales growth.

• Facility upgrades and restructuring for 300mm and smaller wafers are ongoing.