Tekscend Photomask (429A) Q2 2026 earnings summary

Executive summary

• Revenue for FY2025 1H rose 3.8% year-over-year to ¥61,771 million, driven by strong semiconductor demand for AI and cloud products, despite sluggish recovery in smartphones and industrial equipment.

• Maintained leading 38.9% global merchant photomask market share, with high exposure to logic applications and advanced nodes.

• Listed on the Tokyo Stock Exchange Prime Market in 2025, expanding manufacturing footprint with a new site in Singapore.

• Operating profit declined 13.3% year-over-year to ¥12,896 million due to higher depreciation from capital investments, increased listing-related costs, headquarters expansion, and yen appreciation.

• Profit attributable to owners surged 41.5% year-over-year to ¥12,350 million, mainly from a significant decrease in income tax expenses.

Financial highlights

• FY2025 1H revenue: ¥61,771 million (+3.8% YoY); gross profit: ¥20,900 million; gross margin: 33.8%.

• Operating profit: ¥12,896 million (margin 20.9%, down 4.1 pts YoY); EBITDA margin: 35.6% (down 1.8 pts YoY).

• Adjusted EBITDA margin: 36.1%; interim profit attributable to owners: ¥12,350 million (+41.5% YoY).

• Basic earnings per share increased to ¥133.82 from ¥88.48 year-over-year.

• Total comprehensive income reached ¥14,698 million, up from ¥542 million in the prior year period.

Outlook and guidance

• Full-year FY2025 revenue forecast: ¥125,291 million, up 6.2% year-over-year; operating profit: ¥25,500 million (down 9.6%).

• Profit attributable to owners expected to nearly double to ¥18,878 million; basic EPS forecast at ¥197.65.

• Progress rate at 49.3% for revenue and 50.6% for operating profit after 1H.

• No changes to the previously announced earnings forecast as of October 16, 2025.

• Growth expected to continue in advanced nodes and regions outside China.