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

Executive summary

• Net sales for Q1 FY2027 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.

Financial highlights

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

• Operating margin declined to 11.8% from 18.0% in the prior year.

• Ordinary income margin decreased to 12.7% from 18.1% year-over-year.

• Equity ratio stood at 64.6% as of June 30, 2026.

• 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.

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