Valqua (7995) Q3 2026 earnings summary

Executive summary

• Net sales for 1-3Q FY3/2026 were ¥42,303 million, down 6.0% year-over-year, with quarterly sales rebounding in 3Q to ¥15.2 billion.

• Operating profit for 1-3Q FY3/2026 was ¥4,885 million, up 15.7% year-over-year, and profit attributable to owners was ¥3,599 million, up 28.3%.

• Segment changes were implemented due to the sale of the silicon wafer reclaim business, impacting historical comparisons.

• Orders received totaled ¥42,353 million, with an order backlog of ¥11,081 million at period end.

• The group focused on expanding production capacity for a semiconductor industry recovery and implemented measures under its medium-term plan "New Frontier 2026."

Financial highlights

• Gross profit margin improved to 42.6% for 1-3Q FY3/2026, up from 39.9% year-over-year.

• Operating profit margin rose to 11.5% from 9.4% year-over-year.

• EPS for 1-3Q FY3/2026 was ¥204.40, up from ¥159.42 year-over-year.

• Total assets increased to ¥82,884 million, with net assets at ¥51,197 million and a shareholders' equity ratio of 61.7%.

• Overseas net sales accounted for 33.2% of consolidated net sales, up from 31.3% year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to ¥58,000 million due to delayed recovery in High Performance Plastics Products Business.

• Profit forecasts remain unchanged, with operating profit expected at ¥7,000 million and ROE at 9.5%.

• Profit attributable to owners of parent is projected at ¥4,800 million, with basic EPS of ¥272.56.

• Gross profit margin forecasted at 42.8%, and operating profit margin at 12.1%.

• Forecasts incorporate risks from energy/raw material price increases, logistics costs, and global supply chain disruptions.