Sumco (3436) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY2025 were ¥99.1B, with year-to-date sales at ¥304.4B, up 2.6% year-over-year, but operating profit dropped 80.4% to ¥5.8B and a net loss of ¥995M was recorded.

• Profit attributable to owners of parent was ¥(3.9)B for 3Q, with EBITDA margin at 27.6%.

• Strong demand for 300mm silicon wafers for AI and data centers persisted, but demand for other products and smaller wafers remained weak due to inventory adjustments.

• Business reforms included reorganizing production for 200mm and smaller wafers to improve efficiency and profitability.

Financial highlights

• 3Q net sales: ¥99.1B; operating profit: ¥(1.6)B; ordinary profit: ¥(2.6)B; profit attributable to owners: ¥(3.9)B.

• EBITDA margin improved to 27.6% in 3Q, up 1.8 percentage points from forecast.

• Year-to-date EBITDA: ¥83.4B; operating margin: 1.9%; ROE: (0.3)%.

• Basic EPS for 3Q: ¥(11.66); year-to-date: ¥(2.85).

• Gross profit declined from ¥56,355M to ¥46,750M year-over-year.

Outlook and guidance

• Full-year FY2025 net sales expected at ¥404.4B, up 2.0% year-over-year, but operating profit forecast to drop by ¥41.1B to ¥(4.2)B, with a net loss attributable to owners of parent of ¥16.9B (EPS: ¥(48.33)).

• 4Q FY2025 net sales forecast: ¥100.0B; operating profit: ¥(10.0)B; ordinary profit: ¥(13.0)B; profit attributable to owners: ¥(16.0)B.

• EBITDA margin expected to decline to 24.6% in 4Q.

• Dividends per share for FY2025 forecast at ¥20, down from ¥21 in FY2024.

• Continued monitoring of geopolitical risks and U.S. tariff policy impacts on semiconductor demand.