SCREEN Holdings (7735) Q2 2026 earnings summary

Executive summary

• Net sales for the first half were ¥274.2 billion, down 1.1% year-over-year, with operating income at ¥46.4 billion (down 20.2%) and an operating margin of 16.9%, reflecting project revenue shifts and higher fixed costs.

• Full-year guidance remains unchanged, with net sales forecast at ¥621 billion and net income at ¥88 billion, despite a projected 0.7% decrease from the previous year.

• FT segment saw strong growth from OLED and LCD display investment, while SPE segment sales and profits declined due to revenue recognition shifts.

• Equity ratio remains strong at 64.4%, and net assets reached ¥429.5 billion.

• The global economic recovery is moderate, with regional stagnation and ongoing uncertainties from U.S. trade policies.

Financial highlights

• First half net sales: ¥274.2 billion; operating income: ¥46.4 billion; ordinary income: ¥46.8 billion; net income: ¥31.8 billion (down 18.0% YoY).

• Operating cash flow for the first half: ¥30.8 billion; investment cash flow: ¥-12.2 billion; finance cash flow: ¥18.5 billion.

• R&D expenses: ¥38 billion forecast for the year; CapEx: ¥28 billion; depreciation and amortization: ¥15 billion.

• Gross profit for the period was ¥101.9 billion, with a gross margin of 37.2%.

• Net cash at period end was ¥185.1 billion, down 5.5% year-over-year.

Outlook and guidance

• Full-year forecast unchanged: net sales ¥621 billion, operating profit ¥117 billion, operating margin 18.8%, net income ¥88 billion.

• WFE market expected to grow low to mid-single digits in 2026, with recovery anticipated in the second half of next year.

• DRAM and foundry investments to lead growth, with AI-related demand as a key driver.

• Dividend forecast maintained at ¥280 per share, with a payout ratio target of 30% or above.

• Segment sales forecasts: SPE ¥502 billion, GA ¥53 billion, FT ¥46 billion, PE ¥15 billion.