Sumco (3436) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales reached ¥102.9 billion, exceeding forecasts, with operating profit at ¥1.5 billion and EBITDA margin at 26.7%.

• Profit attributable to owners of parent was breakeven for the quarter, improving from a forecasted ¥2.0 billion loss.

• Q2 performance benefited from delayed depreciation and volume variance, offsetting forex and cost impacts.

• Business structural reforms were initiated, including reorganization of 200mm and smaller wafer production.

• Interim dividend set at ¥10 per share; year-end dividend undecided, considering cash needs and free cash flow.

Financial highlights

• First half sales were ¥205.3 billion, up 3.6% YoY; operating profit was ¥7.4 billion, down 64.2% YoY; net profit was ¥3.1 billion, down 75.6% YoY.

• Q2 CapEx was ¥19.2 billion, depreciation ¥26.7 billion; first half CapEx ¥51.9 billion, down sharply YoY.

• Free cash flow for the first half was -¥16.9 billion, with cash and deposits at ¥80.9 billion at Q2 end.

• Basic EPS for the first half was ¥8.81, compared to ¥36.07 in the prior year.

• Operating margin for the first half was 3.6%, down from 10.5% a year earlier.

Outlook and guidance

• Q3 sales projected at ¥101 billion, with operating loss of ¥3.5 billion and net loss of ¥5.5 billion.

• Nine-month forecast: sales ¥306.3 billion, operating profit ¥3.9 billion, net loss ¥2.5 billion.

• Depreciation to rise further in Q3 to ¥31.2 billion; annual depreciation expected to be lower than previous ¥150 billion projection, but next year’s depreciation will be higher.

• CapEx to decline significantly next year, easing investment cash flow burden.

• Demand for leading-edge 300mm wafers remains strong, but shipments of smaller wafers will likely stay weak.