SCREEN Holdings (7735) Q1 2027 (Q&A) earnings summary

Executive summary

• Q1 FY2027 net sales were ¥121,775 million, down 10.3% year-over-year due to lower equipment sales in key segments and regional declines.

• Operating income dropped 41.1% to ¥14,368 million, impacted by decreased sales and higher fixed costs.

• Profit attributable to owners of parent fell 37.1% to ¥10,490 million.

• Comprehensive income rose 33.1% to ¥26,615 million, driven by gains in valuation of available-for-sale securities.

• Full-year revenue forecast revised upward to JPY 743 billion, potentially a record high.

Financial highlights

• Q1 sales were slow, but a significant increase is expected in Q2 due to delayed project recognition.

• Gross margin for Q1 FY2027 was 35.6%, down from 37.7% year-over-year.

• Operating margin for Q1 FY2027 was 11.8%, down from 18.0% year-over-year.

• Inventory rose from JPY 158 billion in Q4 to JPY 192 billion in Q1, indicating anticipated sales growth.

• Cash and cash equivalents at quarter-end were ¥211,228 million.

Outlook and guidance

• FY2027 net sales forecast revised up to ¥743,000 million, a 22.7% increase year-over-year.

• Operating income projected at ¥156,500 million, up 27.7% year-over-year.

• Profit attributable to owners of parent forecast at ¥115,000 million, up 25.0% year-over-year.

• Upward revision for WFE guidance, now expecting over 20% growth in 2026, with potential for 30% and sustained expansion into 2027.

• Dividend forecast for FY2027 revised to ¥183.00 per share (post-split basis).