Screen Holdings . Stock Earnings Reports

SCREEN Holdings Q1 (FY ending Mar 2026) highlights: Net sales rose modestly Q‑on‑Q to JPY 135.7bn (+1.2%), while operating income fell 12.2% Q‑on‑Q to JPY 24.3bn (OP margin 18%), results described as within company expectations. By segment: SPE remains dominant (80.7% of sales) but experienced year‑on‑year declines in sales and profit (foundry & DRAM mix and lower sales to China cited); FT (flat panel / OLED) showed significant sales and profit growth and returned to profitability; GA sales increased but profits were hit by FX; PE remains weak with recovery expected later in CY2025/CY2026. Balance sheet: total assets JPY 639bn, cash declined due to taxes, dividends and buybacks but equity ratio improved to 64.5%; operating cash flow JPY 6.9bn in Q1 and free cash flow negative due to investing/financing. Capital allocation and guidance: company left full‑year guidance unchanged — net sales JPY 621bn, operating income JPY 117bn — and maintained the dividend plan (interim JPY 123, year‑end JPY 157, annual JPY 280). Strategy and outlook: management expects WFE to be roughly flat in CY2025 and to grow low single digits in CY2026, driven by AI‑related leading‑edge foundry investment and DRAM/HBM demand; expects Q2 SPE strength led by DRAM demand in China; advancing investment in advanced packaging (wafer cleaning, PLP coater, direct imaging) and continued R&D/CapEx investments (full‑year targets unchanged). Risks/uncertainties: timing shifts in customer investment plans, FX impact, tariff/export/regulatory uncertainty (not yet materially affecting demand), and product‑mix volatility affecting margin. Corporate actions: cancellation of ~6.2m treasury shares (effective Aug 29) and planned acquisition/disposal of shares for performance linked compensation (~415k shares). Management emphasis: prepare and invest now (R&D and capacity) to capture next‑phase growth, while improving profitability through operational measures.