Tekscend Photomask (429A) Q4 2026 earnings summary

Executive summary

• FY2025 revenue grew 9.8% year-over-year to ¥129,576 million, driven by strong semiconductor and photomask demand, especially for AI, data center, and advanced node applications, as well as increased outsourcing.

• Operating profit margin declined by 2.7 points to 21.2% (¥27,530 million, -2.4% YoY) due to higher material costs, increased depreciation from investments, and one-time listing expenses.

• Profit for the period attributable to owners surged 150.9% year-over-year to ¥24,947 million, supported by improved profitability, lower tax expenses, and gains on currency swaps.

• Sales exceeded forecasts, with notable growth in advanced node and regional diversification.

• The company operates as a single segment focused on the photomask business.

Financial highlights

• FY2025 revenue: ¥129,576 million (+9.8% YoY); operating profit: ¥27,530 million (-2.4% YoY); profit for the period: ¥24,947 million (+150.9% YoY in Q4).

• EBITDA margin: 35.9% (down 1.3 pts YoY); Adjusted EBITDA margin: 36.6%.

• Gross profit margin: 33.4% (down 1.5 pts YoY); gross profit increased to ¥43,269 million.

• Basic earnings per share rose to ¥261.12 from ¥104.16 YoY.

• CAPEX increased, mainly for new Singapore and US plant investments.

Outlook and guidance

• FY2026 revenue forecast: ¥140,100 million (+8.1% YoY); operating profit: ¥29,800 million (+8.2% YoY); EBITDA margin: 34.2%.

• Profit attributable to owners expected to decrease 5.0% to ¥23,700 million; basic EPS forecasted at ¥248.06.

• Dividend per share projected at ¥70.00, with a payout ratio of approximately 30%.

• Margin improvement expected to be limited as recent investments are still ramping up.

• Growth investments planned in Singapore, US, Korea, and Japan to support future expansion.