Sumco (3436) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net sales were ¥99.1B, slightly below forecast, with operating profit at ¥(1.6)B, an improvement over forecast but a significant year-over-year decline.

• Profit attributable to owners of parent was ¥(3.9)B for Q3 FY2025, reflecting ongoing market challenges.

• Strong demand for 300mm wafers for AI and data centers persisted, but demand for 200mm and smaller wafers remained weak due to inventory adjustments and US-China decoupling.

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

Financial highlights

• Q3 FY2025 sales: ¥99.1B; operating profit: ¥(1.6)B; ordinary profit: ¥(2.6)B; net loss: ¥(3.9)B; EBITDA margin: 27.6%.

• CapEx for Q3: ¥17.4B; nine-month CapEx: ¥69.3B, down ¥100B year-on-year.

• Q3 depreciation: ¥30.6B; nine-month depreciation: ¥80B, up ¥23.9B year-on-year.

• Free cash flow for nine months: ¥(15.2)B; cash and deposits declined ¥19.6B.

• Basic EPS for Q3 FY2025 was ¥(11.66), compared to ¥8.71 in Q1 FY2025.

Outlook and guidance

• Q4 FY2025 sales projected at ¥100B, operating loss of ¥10B, net loss of ¥16B.

• Full-year forecast: sales of ¥404.4B, operating loss of ¥4.2B, net loss of ¥16.9B (EPS: ¥(48.33)).

• Depreciation expected to rise further in Q4 and peak in 2026; CapEx to decline further in 2025 and 2026.

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