At its earnings briefing for the first half of 2026, OXIDE announced revenue of ¥4.935 billion, operating profit of ¥641 million and an improvement in its operating margin. Growth in the semiconductor business drove overall performance, and the company raised its full-year earnings forecasts.
At its consolidated earnings briefing for the second quarter of the fiscal year ending February 2027, OXIDE reported first-half revenue of ¥4.935 billion, up 18.9% year on year, and operating profit of ¥641 million, returning to profitability from a loss of ¥189 million in the same period of the previous year. Profitability improved as gross profit margins increased, and progress across the 4 key metrics was notable.
By business segment, the semiconductor business was the main growth driver, with semiconductor-related revenue of ¥3.259 billion, up 70% year on year. Growth was supported by expanding demand from data centers and increased shipments of laser products and optical single-crystal products. Orders received reached a record ¥3.456 billion, while the order backlog remained high at ¥3.390 billion as of the end of August.
The full-year outlook was revised, with revenue projected at ¥10.323 billion, up 2.8% year on year, and operating profit at ¥1.367 billion, up 151.9%. The medium-term target operating margin of 13.2% is nearly within reach, and the EBITDA margin is also expected to come within range. Capital investment in Faraday rotators for data centers will be carried out as planned.
On the financial side, the net debt-to-EBITDA ratio declined from 3.7 times at the end of the previous fiscal year to 2.6 times, while the equity ratio improved to 34.7%. Future risks include higher raw material costs and longer transaction terms in the healthcare business, as well as geopolitical risks and developments in US trade policy. Expansion of the semiconductor market and continued data-center demand are expected to drive growth.