Sumco (3436) Q4 2025 earnings summary

Executive summary

• FY2025 net sales rose to JPY 409.6 billion, up 3.3% year-over-year, but operating profit dropped sharply to JPY 1.3 billion from JPY 36.9 billion, with a net loss attributable to owners of parent of JPY 11.7 billion.

• Profitability was pressured by increased depreciation from capital investments, higher costs, and weak demand for non-leading-edge and smaller wafers.

• EBITDA margin remained robust at 27.4% for FY2025, despite profit declines.

• Management transition announced, with a new president selected for international experience and continuity.

• 4Q 2025 saw a sequential net sales increase but deeper operating losses compared to 3Q.

Financial highlights

• FY2025 operating profit was JPY 1.3 billion, down from JPY 36.9 billion in 2024, with an ordinary loss of JPY 3.8 billion and net loss of JPY 11.7 billion.

• Net sales in 4Q 2025 were JPY 105.2 billion, up JPY 6.1 billion sequentially from 3Q, but operating loss was JPY 4.5 billion and net loss JPY 10.8 billion.

• EBITDA for FY2025 was JPY 112.4 billion, nearly flat year-on-year.

• CapEx for FY2025 was JPY 79.9 billion, down JPY 135 billion year-on-year.

• Free cash flow for the year was negative JPY 11.4 billion, but positive in the second half.

Outlook and guidance

• Q1 FY2026 sales projected at JPY 100 billion, with an operating loss of JPY 6 billion and net loss of JPY 10 billion.

• Only quarterly forecasts are provided due to industry volatility.

• Ongoing inventory correction for legacy nodes expected to last through year-end, with gradual recovery in leading-edge wafer demand from H2.

• Wafer volumes for 2026 expected to be flat to slightly up year-on-year, with growth in leading edge offsetting legacy weakness.

• EBITDA margin projected to decline to 23.2% in Q1 2026.