SCREEN Holdings (7735) Q2 2025 earnings summary

Executive summary

• Achieved record first-half net sales of ¥277.3 billion, up 24.2% year-over-year, and operating income of ¥58.2 billion, up 51.1%, driven by robust demand in semiconductor and display equipment.

• Profits attributable to owners of parent rose 47.4% to ¥38.8 billion, supported by strong capital investment in semiconductor miniaturization, packaging, and display manufacturing recovery.

• Full-year earnings and dividend forecasts were revised upward, with interim dividend raised to ¥120 per share and annual dividend forecasted at ¥247 per share.

• Operating cash flow improved significantly in Q2 compared to Q1, and net assets increased steadily due to accumulated profits.

Financial highlights

• First half net sales: ¥277.3 billion; operating income: ¥58.2 billion (21% margin); net income: ¥38.8 billion; gross profit margin improved to ¥106.96 billion.

• Operating margin for 1H: 21.0%, up 3.7pt YoY; equity ratio at 59.1%; net assets at ¥395.2 billion.

• Cash and cash equivalents at September 30, 2024, totaled ¥198.44 billion, up ¥3.02 billion from March 31, 2024.

• Net cash provided by operating activities was ¥33.49 billion for the first half.

Outlook and guidance

• Full-year net sales forecast revised to ¥577.0 billion (+14.3% YoY), operating income to ¥113.5 billion (+20.5%), and net income to ¥80.0 billion (+13.3%).

• Basic EPS forecast at ¥822.30; annual dividend forecast at ¥247 per share (post-split basis).

• All major profit metrics expected to hit record highs for the fourth consecutive year.

• R&D and CAPEX to focus on SPE and new business fields, with increased investment planned for 2H.

• WFE market expected to see mid-single-digit growth in CY2024, with stronger growth in CY2025, especially in DRAM and Flash.