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 weak demand for non-leading-edge and smaller wafers, increased depreciation from capital investments, and business restructuring expenses.

• EBITDA for the year was JPY 112.4 billion, with a margin of 27.4%, nearly flat year-on-year.

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

• 4Q 2025 saw sequential improvement in net sales and operating profit compared to 3Q, but both remained negative.

Financial highlights

• Full-year net sales: JPY 409.6 billion (+3.3% YoY); operating profit: JPY 1.3 billion (down from JPY 36.9 billion); net loss: JPY 11.7 billion.

• Q4 sales: JPY 105.2 billion; operating loss: JPY 4.5 billion; net loss: JPY 10.8 billion.

• EBITDA: JPY 112.4 billion; EBITDA margin: 27.4%.

• CapEx for FY2025: JPY 79.9 billion, down sharply 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 forecast: net sales JPY 100 billion, operating loss JPY 6 billion, net loss JPY 10 billion, basic EPS JPY (28.59).

• 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.

• Demand for 300mm wafers remains favorable for AI-related products, while legacy product recovery lags.