Ferrotec (6890) Q1 2027 earnings summary

Executive summary

• Fiscal year-end changed from March 31 to December 31, resulting in an irregular reporting period for this quarter.

• Strong demand in semiconductor equipment, especially from AI-related investments and memory manufacturing.

• Electronic devices saw growth in thermoelectric modules for new optical transceivers, while automotive-related business faced continued price declines in power semiconductor substrates.

• Operating profit benefited from improved factory utilization and product mix, despite higher fixed costs from new plant depreciation.

• Special gain of ¥2,791 million recorded from a subsidiary's change to equity-method affiliate.

Financial highlights

• Revenue: ¥182,437 million; Operating profit: ¥28,071 million; Ordinary profit: ¥27,279 million; Net profit attributable to shareholders: ¥21,519 million.

• EPS: ¥430.60 (diluted: ¥398.21) for the quarter.

• Comprehensive income: ¥51,382 million, a significant turnaround from a loss in the prior year.

• Dividend forecast for FY2026: interim ¥100, year-end ¥100 (including ¥25 special dividend each period).

Outlook and guidance

• Full-year forecast (irregular period): Revenue ¥380,000 million, Operating profit ¥60,000 million, Ordinary profit ¥55,000 million, Net profit attributable to shareholders ¥36,000 million, EPS ¥683.66.

• Forecast revised from previous guidance.