Ferrotec (6890) Q2 2026 earnings summary

Executive summary

• FY2026 Q2 revenue reached ¥141 billion, up 4.3% year-over-year, with operating profit at ¥14.3 billion, nearly flat due to increased labor and new plant costs.

• Net profit declined to ¥6.3 billion, impacted by special losses from asset disposals and a 31.4% YoY drop in profit attributable to owners of parent.

• Comprehensive income for the period was negative ¥14,978 million, compared to ¥45,857 million in the prior year.

• Strong growth in electronic devices (up 21%) and automotive (up 11%), while semiconductor and equipment segments remained flat.

• Global expansion continues, with significant investments in new plants in Japan, China, and Malaysia, and robust growth in the US and Europe.

Financial highlights

• Revenue for the quarter: ¥141 billion (+4.3% YoY).

• Operating profit: ¥14.3 billion (up 0.6% YoY); recurring profit: ¥12.9 billion (down ¥2.5 billion YoY, mainly due to forex losses).

• Net profit: ¥6.3 billion (down ¥2.9 billion YoY), affected by special losses from asset disposals.

• US segment sales grew from $280 million in 2023 to $380 million in 2024, targeting $600 million next year.

• Basic earnings per share for the six months was ¥134.73, down from ¥195.47 year-over-year.

Outlook and guidance

• FY2025 revenue expected to exceed ¥285 billion, with targets for at least 15% annual growth.

• Full-year net sales forecast for FY2026 is ¥285,000 million, up 3.9% year-over-year.

• Operating profit is projected to rise 24.5% to ¥30,000 million, and profit attributable to owners of parent is expected to increase 2.0% to ¥16,000 million.

• Dividend forecast for FY2026 is ¥148.00 per share, up from ¥141.00 in the previous year.

• Three-year plan aims to double sales to ¥600 billion, with continued global expansion and M&A considered.