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Presentation materials for financial results6890Ferrotec CorporationElectrical Equipment and Precision Instruments

(Progress on Disclosed Matter) Disclosure of Earnings Presentation Materials and Medium-Term Management Plan (Rolling Plan) Materials

The company reported actual results for the fiscal year ended March 2026 and its earnings forecast for the fiscal year ending December 2026, and rolled forward its medium-term management plan. It outlined a policy of capturing demand related to semiconductors, AI and data centers while expanding production capacity in Malaysia, China and other locations.

Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
14542
¥ million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, full-year results11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥288,933 million+5.3%
Operating profit¥27,561 million+14.4%
Ordinary income¥26,063 million+2.0%
Net income¥14,886 million -5.1%net income attributable to owners of the parent
Selling, general and administrative expenses¥53,755 million
Gross Profit Margin28.1%, up 1.4 percentage points year on year (gross profit of ¥81,317 million versus ¥73,361 million in the previous year)
Operating profit margin9.5%. The performance trends section of the materials states 8.8% for the previous year.
Results for the three months of the current quarterFourth quarter of the fiscal year ended March 2026: revenue of ¥77,287 million, operating income of ¥5,721 million, ordinary income of ¥6,426 million, and net income attributable to owners of the parent of ¥4,740 million
Full-year earnings forecast
Net Sales
¥350,000 million
Operating profit
¥38,000 million
Ordinary income
¥36,000 million
Net income
¥23,000 million
Capital expenditures
¥65,000 million
Depreciation and amortization
¥32,172 million
EBITDA
¥70,172 million
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • US dollar exchange rate (average during the period)¥150
  • Chinese yuan exchange rate (average during the period)¥21
New initiatives
  • The second factory in Kulim, Malaysia, is scheduled to begin operations during 2026
  • Developing new factories and production lines in Beijing, Shaoxing, Wuhan and other locations in China
  • CRSM, the reclaimed wafer business company, is scheduled to change to an equity-method affiliate from July 2026 onward
  • Plans to conduct share repurchases from the fiscal year ending December 2026 through the fiscal year ending December 2028
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio37.6 %
    Year on year against the same period last year-1.8 percentage points year on year
  • FCF¥-37,600 million
  • EBITDA¥54,988 million
Segment results
  • Semiconductor Equipment-Related Business
    Net Sales185,139
    Revenue unit¥ million
    Year-on-year change in revenue+12%
    Operating profit16,048
    Operating profit unit¥ million
    Year-on-year operating profit growth+30%
  • Electronic Devices Business
    Net Sales57,584
    Revenue unit¥ million
    Year-on-year change in revenue+14%
    Operating profit10,465
    Operating profit unit¥ million
    Year-on-year operating profit growth+26%
  • Automotive Business
    Net Sales29,245
    Revenue unit¥ million
    Year-on-year change in revenue-4%
    Operating profit2,694
    Operating profit unit¥ million
    Year-on-year operating profit growth-25%
  • Other Related Businesses
    Net Sales16,964
    Revenue unit¥ million
    Operating profit-1,349
    Operating profit unit¥ million
Medium-term management plan targets
  • Target fiscal yearFY2028 December
    Net Sales¥450,000 million
    Operating profit¥57,000 million
    Net income for the current fiscal year¥38,000 million
  • Target fiscal yearFY2030
    Net Sales¥500,000 million
    Net income for the current fiscal year¥50,000 million
Financial targets
  • ROE
    Actual results for the fiscal year ending March 20266.0%
    Target for the fiscal year ending December 202811.0%
  • ROIC
    Actual results for the fiscal year ending March 20263.2%
    Target for the fiscal year ending December 20287.0%
  • Equity ratio
    Actual results for the fiscal year ending March 202637.6%
    Plan for the fiscal year ending December 202840.0%
Market Size / Share
Data center investment is forecast to reach approximately ¥100 trillion by 2030. The company’s share of sales destinations for thermoelectric modules for optical transceivers was 65.0% in 2025, including a 69.8% share for optical transceivers.
Capital expenditures
54,598 Millions of yen fiscal year ended March 2026 actual
Annual Dividend
Actual dividend for the fiscal year ended March 2026: ¥148.0 per share; planned dividend for the fiscal year ending December 2026: ¥200.0 per share (ordinary dividend of ¥150 plus special dividend of ¥50)
Payout ratio
Planned payout ratio of 46.8% for the fiscal year ending December 2026; aims for a minimum DOE of 3.5% and a total payout ratio of 50%
Acquisition of treasury shares
Plans to conduct share repurchases of up to ¥25 billion from the fiscal year ending December 2026 through the fiscal year ending December 2028
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, full-year results
Net Sales¥288,933 million (YoY +5.3%)
Operating profit¥27,561 million (YoY +14.4%)
Ordinary income¥26,063 million (YoY +2.0%)
Net income¥14,886 million (net income attributable to owners of the parent) (YoY -5.1%)
Gross Profit Margin28.1%, up 1.4 percentage points year on year (gross profit of ¥81,317 million versus ¥73,361 million in the previous year)
Operating profit margin9.5%. The performance trends section of the materials states 8.8% for the previous year.
Selling, general and administrative expenses¥53,755 million
Results for the three months of the current quarterFourth quarter of the fiscal year ended March 2026: revenue of ¥77,287 million, operating income of ¥5,721 million, ordinary income of ¥6,426 million, and net income attributable to owners of the parent of ¥4,740 million
Full-year earnings forecastNet Sales ¥350,000 million / Operating profit ¥38,000 million / Ordinary income ¥36,000 million / Net income ¥23,000 million / Capital expenditures ¥65,000 million / Depreciation and amortization ¥32,172 million / EBITDA ¥70,172 million
Segment resultsSegment Semiconductor Equipment-Related Business / Net Sales 185,139 / Revenue unit ¥ million / Year-on-year change in revenue +12% / Operating profit 16,048 / Operating profit unit ¥ million / Year-on-year operating profit growth +30%, Segment Electronic Devices Business / Net Sales 57,584 / Revenue unit ¥ million / Year-on-year change in revenue +14% / Operating profit 10,465 / Operating profit unit ¥ million / Year-on-year operating profit growth +26%, Segment Automotive Business / Net Sales 29,245 / Revenue unit ¥ million / Year-on-year change in revenue -4% / Operating profit 2,694 / Operating profit unit ¥ million / Year-on-year operating profit growth -25%, Segment Other Related Businesses / Net Sales 16,964 / Revenue unit ¥ million / Operating profit -1,349 / Operating profit unit ¥ million
Key KPIsIndicator Equity ratio / Value 37.6 % / Year on year against the same period last year -1.8 percentage points year on year, Indicator FCF / Value ¥-37,600 million, Indicator EBITDA / Value ¥54,988 million
Assumptions Underlying the Business OutlookItem US dollar exchange rate (average during the period) / Value ¥150, Item Chinese yuan exchange rate (average during the period) / Value ¥21
Medium-term management plan targetsTarget fiscal year FY2028 December / Net Sales ¥450,000 million / Operating profit ¥57,000 million / Net income for the current fiscal year ¥38,000 million, Target fiscal year FY2030 / Net Sales ¥500,000 million / Net income for the current fiscal year ¥50,000 million
Financial targetsIndicator ROE / Actual results for the fiscal year ending March 2026 6.0% / Target for the fiscal year ending December 2028 11.0%, Indicator ROIC / Actual results for the fiscal year ending March 2026 3.2% / Target for the fiscal year ending December 2028 7.0%, Indicator Equity ratio / Actual results for the fiscal year ending March 2026 37.6% / Plan for the fiscal year ending December 2028 40.0%
Annual DividendActual dividend for the fiscal year ended March 2026: ¥148.0 per share; planned dividend for the fiscal year ending December 2026: ¥200.0 per share (ordinary dividend of ¥150 plus special dividend of ¥50)
Payout ratioPlanned payout ratio of 46.8% for the fiscal year ending December 2026; aims for a minimum DOE of 3.5% and a total payout ratio of 50%
Acquisition of treasury sharesPlans to conduct share repurchases of up to ¥25 billion from the fiscal year ending December 2026 through the fiscal year ending December 2028
Capital expenditures54,598 Millions of yen (fiscal year ended March 2026 actual)
Market Size / ShareData center investment is forecast to reach approximately ¥100 trillion by 2030. The company’s share of sales destinations for thermoelectric modules for optical transceivers was 65.0% in 2025, including a 69.8% share for optical transceivers.
New initiativesThe second factory in Kulim, Malaysia, is scheduled to begin operations during 2026, Developing new factories and production lines in Beijing, Shaoxing, Wuhan and other locations in China, CRSM, the reclaimed wafer business company, is scheduled to change to an equity-method affiliate from July 2026 onward, Plans to conduct share repurchases from the fiscal year ending December 2026 through the fiscal year ending December 2028
Items this document does not state (9)
Progress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue growth and higher operating income were driven by increased production at semiconductor equipment manufacturers, growth in semiconductor manufacturing in China, and expanding demand for thermoelectric modules for optical transceivers against the backdrop of investment in generative AI servers. Net income, however, declined due to a ¥2.4 billion deterioration in foreign exchange gains and losses and an approximately ¥2 billion increase in income taxes and other taxes.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
(Progress on Disclosed Matter) Disclosure of Earnings Presentation Materials and Medium-Term Management Plan (Rolling Plan) Materials | Ferrotec Corporation (6890) timely disclosure | Komori