Ulvac reports mixed results for the first half of fiscal year 2026, raises full-year order guidance

Investing.com – Ulvac reports mixed results for the first half of fiscal year 2026, with sales exceeding expectations but operating profit slightly below forecasts.

The company’s first-quarter sales were ¥7.12 billion, down 4% year-over-year, with an operating profit of ¥620 million, down 35%. For the first half, sales reached ¥12.39 billion, down 8% YoY, while operating profit declined 45% to ¥850 million.

Compared to the company’s previous guidance of ¥11.55 billion in sales and ¥900 million in operating profit, Ulvac’s first-half sales exceeded expectations, but operating profit was slightly short. These results are generally in line with market consensus, which previously estimated sales of ¥11.59 billion and operating profit of ¥930 million.

The second quarter gross profit margin was 29.1%, down 2.8 percentage points YoY, attributed by the company to a temporary change in product mix, with a decline in power semiconductor share and an increase in flat panel display (FPD) share.

In the semiconductor sector, second-quarter sales were ¥2.13 billion, down ¥420 million YoY but up ¥510 million quarter-over-quarter. Despite YoY decline in semiconductor sales, sales of logic and electronic components increased quarter-over-quarter.

In the display sector, second-quarter sales reached ¥1.97 billion, up ¥190 million YoY and up ¥860 million QoQ, mainly driven by strong growth in G8 OLED investments. Components sales were ¥880 million, down ¥440 million YoY but up ¥400 million QoQ.

Total orders in the second quarter were ¥7.67 billion, up ¥1.12 billion YoY and up ¥1.63 billion QoQ. For the first half, total orders reached ¥12.39 billion, up ¥750 million YoY, exceeding guidance by ¥390 million.

Semiconductor orders in Q2 totaled ¥2.87 billion, up ¥1.07 billion, with logic orders significantly increasing from Q1. The company sees strong investment in advanced processes, with increased orders from mature process MHM applications in China. Memory orders also grew, contributed by major memory manufacturers. Orders for advanced packaging remained high in Q2, while power semiconductor orders increased but remain at a relatively low level.

FPD orders rose to ¥1.83 billion, up ¥300 million YoY and up ¥530 million QoQ. Component orders were ¥880 million, down ¥700 million YoY but up ¥100 million QoQ. General equipment application orders reached ¥670 million, up ¥220 million YoY but down ¥300 million QoQ.

Ulvac has raised its full-year 2026 order forecast from ¥25.0 billion to ¥28.0 billion. The company now expects display orders to reach ¥6.3 billion, up 35% YoY, exceeding the previous forecast by ¥2.0 billion. Semiconductor orders are forecasted to increase to ¥9.4 billion, up 33% YoY, surpassing previous expectations by ¥400 million.

In the semiconductor sector, including logic, memory, and packaging, AI-related orders are expected to exceed ¥7.0 billion, a 54% increase YoY.

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