Tekscend Photomask (429A) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2026/FY2027 rose 14.8% year-over-year to 34,518 million yen, driven by strong semiconductor, advanced-node, and AI-related demand.

• Operating profit increased 25.3% to 7,360 million yen, with margin improving to 21.3% and EBITDA margin at 35.4%.

• Profit attributable to owners declined 3.2% to 5,300 million yen, mainly due to higher tax expenses on overseas dividends.

• Growth was supported by a higher mix of advanced-node products, favorable FX, and strong photomask market demand.

• Total comprehensive income surged 68.9% to 8,522 million yen, reflecting significant foreign currency translation gains.

Financial highlights

• Gross profit increased to 11,464 million yen, with gross profit margin at 33.2%, up 0.6 points YoY.

• Basic earnings per share was 53.36 yen, down from 59.33 yen in the prior year.

• Total assets at quarter-end: 229,957 million yen; equity increased to 177,493 million yen, equity ratio at 77.2%.

• Free cash flow for Q1: 4,307 million yen.

• Profit before tax increased 19.5% to 8,127 million yen year-over-year.

Outlook and guidance

• FY2026 full-year revenue forecast: 140,100 million yen, with 12.6% growth in USD terms and 8.1% YoY in JPY.

• Operating profit forecast: 29,800 million yen, margin expected at 21.3%, up 8.2% YoY.

• Profit attributable to owners forecast at 23,700 million yen, down 5.0% YoY.

• Margin expansion anticipated from a higher advanced-node mix and cost management initiatives.

• Dividend per share projected at 70.00 yen plus 14.00 yen.