Sumco (3436) Q2 2025 earnings summary

Executive summary

• Q2/FY2025 sales reached ¥102.9B, slightly above plan, with operating profit at ¥1.5B and ordinary profit near breakeven; interim dividend set at ¥10 per share, year-end dividend undecided.

• 1H/FY2025 net sales rose 3.6% YoY to ¥205.3B, but operating profit dropped 64.2% to ¥7.4B and net profit fell 75.6% to ¥3.1B due to higher costs and depreciation.

• Q3 is forecasted to see sales largely unchanged QoQ, but an operating loss of ¥3.5B and net loss of ¥5.5B due to higher depreciation and electricity costs.

• EBITDA margin for Q2/FY2025 was 26.7%, nearly unchanged from forecast.

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

Financial highlights

• 1H/FY2025 net sales: ¥205.3B (+¥7.1B YoY); operating profit: ¥7.4B (−¥13.4B YoY); net profit: ¥3.0B (−¥9.6B YoY); basic EPS: ¥8.81 (−¥27.26 YoY).

• Q2 CapEx was ¥19.2B, depreciation ¥26.7B; 1H CapEx ¥51.9B, down sharply YoY.

• Free cash flow for 1H was −¥16.9B, with net cash used in investing activities of −¥70.5B.

• Operating margin for 1H/FY2025 was 3.6% (−6.9pp YoY); net profit margin was about 1.5%.

• Total assets as of June 30, 2025, were ¥1,161,774M, with an equity-to-asset ratio of 50.7%.

Outlook and guidance

• Q3/FY2025 sales projected at ¥101.0B, with operating loss of ¥3.5B and net loss of ¥5.5B.

• Nine-month forecast: sales ¥306.3B (+3.2% YoY), OP ¥3.9B (−87.0% YoY), net loss ¥2.5B.

• Depreciation to rise in Q3 to ¥31.2B; annual depreciation expected below previous ¥150B projection, but higher next year.

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

• Ongoing business reforms aim to improve profitability amid weak demand for smaller wafers.