Sumco Corporation

For Q4 FY2025, sales were JPY 105.2 billion, operating profit was minus JPY 4.5 billion, ordinary profit was minus JPY 5.9 billion, and profit attributable to owners of the parent was minus JPY 10.8 billion. For the full year, sales were JPY 409.6 billion, operating profit was JPY 1.3 billion, ordinary profit was minus JPY 3.8 billion, and loss attributable to owners of the parent was JPY 11.7 billion. Full-year CapEx was JPY 79.9 billion versus JPY 214.9 billion in 2024; depreciation was JPY 115.6 billion, up JPY 36.7 billion year over year; EBITDA was JPY 112.4 billion; operating cash flow was JPY 100 billion; free cash flow was minus JPY 11.4 billion; cash and deposits declined JPY 20.4 billion. For Q1 FY2026, management guided to sales of JPY 100 billion, operating loss of JPY 6 billion, ordinary loss of JPY 10 billion, and net loss attributable to owners of the parent of JPY 10 billion, assuming FX of JPY 155 to the dollar.

Hashimoto framed the quarter as a significant beat versus expectations and used the call to explain the strategic setup for the next phase of the business. He emphasized that 200mm wafers remain in a structural decline, while 300mm is recovering on AI demand, especially leading-edge logic and memory, with NAND demand beginning to emerge for inference. He was upbeat about the long term but cautious on timing, saying legacy inventory correction must happen first and that broader wafer demand growth should become more visible later this year into next year.

Kubozoe provided the hard numbers and explained that Q4 sales beat the plan because more goods arrived than expected at quarter-end and because of FX, while operating losses widened sequentially due to higher depreciation, lower production from maintenance and holidays, and product-mix pressure. He said full-year CapEx was JPY 79.9 billion, down sharply from JPY 214.9 billion a year ago, while depreciation rose to JPY 115.6 billion, and cash and deposits fell JPY 20.4 billion as the company funded obligations and dividends. He also outlined Q1 guidance of JPY 100 billion in sales and a JPY 6 billion operating loss, with depreciation expected to fall Q-on-Q by JPY 4.3 billion and FX assumed at JPY 155 per dollar.

Analysts pressed management on the leadership transition, longer-term wafer supply, LTA rollovers, pricing, and whether stronger customer margins could support higher wafer prices. Hashimoto said the CEO handover was timed for when cash flow had recovered and after major investments were completed, and he stressed that his successor has strong international customer experience. On supply and pricing, he said the next LTA rollover is “a long way off,” prices should be “fine,” and that prices ultimately depend on supply-demand balance rather than customer profitability; he also warned that Chinese competition and legacy oversupply make price hikes difficult.