SCREEN Holdings (7735) Q1 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating income, ordinary income, and net income for Q1 FY2025, with both sales and profits increasing year-over-year, driven by strong demand in semiconductor and related equipment.

• Revised upward the 1H and full-year earnings and dividend forecasts for FY2025, with annual dividend projected at a record JPY 233 per share.

• All major business segments contributed to growth, with SPE (Semiconductor Production Equipment) leading gains.

• Growth was led by robust capital investment in semiconductor miniaturization, packaging, and mature nodes, especially in China.

Financial highlights

• Q1 net sales: JPY 134.2 billion (+34.6% YoY); operating income: JPY 27.7 billion (+106.9% YoY); net income: JPY 18.2 billion (+93.2% YoY); OP margin: 20.7% (record high).

• Equity ratio improved to 60.5%.

• Operating cash flow: JPY -32.1 billion, mainly due to payment schedule shifts and tax payments.

• Cash and cash equivalents decreased by JPY 51.4 billion to JPY 144.0 billion due to negative operating cash flow and dividend payments.

• Gross profit rose to JPY 52.5 billion from JPY 33.6 billion YoY.

Outlook and guidance

• Full-year FY2025 net sales forecast revised up to JPY 564.5 billion; operating income to JPY 105 billion (OP margin 18.6%); net profit forecast JPY 75 billion.

• Interim dividend forecast raised to JPY 109; total annual dividend target JPY 233 per share.

• Expecting further growth in DRAM and logic for the full year; foundry to decrease in the second half.

• China sales proportion expected to decline in the second half, with increases in South Korea, Europe, and Japan.

• Semiconductor market growth expected, driven by AI-related demand and investments in leading-edge nodes and DRAM.