[How long will the AI demand tailwind last?] Ferrotec raises ordinary profit forecast by 20% in its third upward revision for the current fiscal year, examining the structure supporting its high margins (Money Post WEB)

フェローテック, which makes components for semiconductor manufacturing equipment and other products, raised its consolidated earnings forecast for the fiscal year ending December 2026 on 2 November. The ordinary profit forecast was set at ¥66 billion, an increase of 20.0% from the previous forecast. The sales forecast was raised to ¥400 billion and the operating profit forecast to ¥68 billion. The revised forecast operating margin is 17.0%, with high-margin products expected to account for much of the increase in sales. The assumed exchange rate remains unchanged at ¥158 to the US dollar.

The company cited two areas of strengthening demand as reasons for the revision. One is demand for semiconductor manufacturing equipment related to generative AI, where inquiries for materials, vacuum seals and metal-processing components have increased. The other is the electronic devices business, where demand has grown for thermo-modules incorporated into optical transceivers for AI data centers. The profit contribution from sales growth has increased from the previous forecast.

Compared with the initial forecast, the sales forecast is up only 14.3%, while the operating profit forecast has expanded from ¥38 billion to approximately 1.79 times that amount, bringing the revised forecast operating margin to 17.0%. The company explained that, following a change in its fiscal year-end, the standalone company will report a 9-month financial period and its consolidated subsidiaries a 12-month financial period, but that the impact of the 9-month period will be limited.

These increases are attributed to trends in AI-related demand and changes in the product mix. The focus will be on which product groups will make the largest contribution going forward and whether this momentum will continue.