Shibaura Mechatronics (6590): FY2025 Results Summary — Record Operating Income for the Fourth Straight Year on Advanced-Package Demand

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Shibaura Mechatronics Corporation (6590), a maker of semiconductor and FPD manufacturing equipment, announced its consolidated business results for FY2025 (the year ended March 31, 2026) on May 13, 2026. Net sales were 88.0 billion yen (up 9%) and operating income was 15.3 billion yen (up 8%), with operating income and ordinary income reaching record highs for the fourth straight year. Orders received rose 26% to 87.7 billion yen, driven by generative AI demand for equipment for advanced packages. In this material, the company labels the fiscal year ended March 31, 2026 as FY2025.

Consolidated Results (Full-Year Actual)

Net sales increased 9% year on year (80.9 ⇒ 88.0 billion yen). Net sales increased in the SPE field (front and back-end process equipment for semiconductors); above all, significant increases were seen in equipment for advanced packages among back-end process equipment for semiconductors. Operating income increased 8% (14.1 ⇒ 15.3 billion yen). Orders received increased 26% (69.8 ⇒ 87.7 billion yen), and the backlog of orders stood at 48.3 billion yen as of March 31, 2026. Against the previous forecast announced in February 2026, net sales were ±0%, operating income was up 1.7% (15.0 ⇒ 15.3 billion yen) and net income was up 3.4% (10.8 ⇒ 11.2 billion yen) — both sales and profit were within expectations. On the balance sheet, the shareholders’ equity ratio rose from 49.7% (’25/3) to 55.1% (’26/3), and the D/E ratio improved from 0.19x to 0.16x. The table below is in units of 100 million yen.

Item	FY2024	FY2025	YoY rate of change
Net sales	809	880	+9%
Operating income	141	153	+8%
ROS	17.5%	17.3%	-0.2pt
Ordinary income	140	149	+7%
Net income	103	112	+8%
ROE	24.0%	21.7%	-2.3pt
Orders received	698	877	+26%
FCF	38	-35	-73

Segment Results

In the Fine mechatronics segment (front-end process equipment for semiconductors and FPDs), net sales increased 4% year on year (50.4 ⇒ 52.2 billion yen). While sales of front-end process equipment for logic/foundry remained steady, sales of equipment for photomasks and for power devices were sluggish, resulting in a decrease in equipment sales; orders related to maintenance and services contributed, leading to an overall increase. Segment income decreased 9% (8.9 ⇒ 8.1 billion yen), in part due to a decline in equipment sales along with an increase in selling, general and administrative expenses associated with growth investments. In the Mechatronics systems segment (back-end process equipment for semiconductors and FPDs, and vacuum equipment), net sales increased 38% (22.8 ⇒ 31.4 billion yen), reflecting strong sales of equipment for advanced packages due to an increase in demand for GPUs for generative AI, and segment income increased 68% (4.7 ⇒ 7.8 billion yen). Orders received increased 17% to 52.8 billion yen in Fine mechatronics and 73% to 30.5 billion yen in Mechatronics systems.

Segment	Metric	FY2024	FY2025	YoY
Fine mechatronics	Net sales	50.4 billion yen	52.2 billion yen	+4%
Fine mechatronics	Segment income	8.9 billion yen	8.1 billion yen	-9%
Fine mechatronics	Orders received	45.3 billion yen	52.8 billion yen	+17%
Mechatronics systems	Net sales	22.8 billion yen	31.4 billion yen	+38%
Mechatronics systems	Segment income	4.7 billion yen	7.8 billion yen	+68%
Mechatronics systems	Orders received	17.7 billion yen	30.5 billion yen	+73%

FY2026 Forecast

For FY2026 (the year ending March 31, 2027), the company forecasts increased sales and income: net sales of 99.0 billion yen (up 12.4%), operating income of 16.0 billion yen (up 4.8%) and ROS of 16.2% (down 1.1pt). In the semiconductor industry, investment in generative AI is continuing, capital investment for memories as well as logic is recovering, and investment in photomasks is continuing in the Chinese market, while the power device market remains sluggish; capital investment in the FPD industry will continue at its low level. Expenses for growth investment are expected to increase by about 3.9 billion yen year on year (depreciation expenses 2.9 billion yen, research and development expenses 0.3 billion yen, personnel expenses 0.7 billion yen). The table below is in units of 100 million yen.

Item	FY2025	FY2026 Forecast	YoY rate of change
Net sales	880	990	12.4%
Operating income	153	160	4.8%
ROS	17.3%	16.2%	-1.1pt
Ordinary income	149	157	5.4%
Net income	112	119	6.5%
ROE	21.7%	20.2%	-1.5pt
FCF	-35	5	+40

Shareholder Returns

The company targets a consolidated dividend payout ratio of approximately 35%. Because net income exceeded the previous forecast, the year-end dividend per share for the year ended March 31, 2026 is planned to be increased by 2 yen from the previous forecast to 60 yen (pre-stock split conversion: 300 yen), for a consolidated dividend payout ratio of 35.2%. A 5-for-1 stock split was implemented with the effective date of March 1, 2026. For FY2026, a year-end dividend of 64 yen is planned. The table below shows recent annual dividends (graph and adjusted figures as presented by the company).

Item	2024	2025	2026 (Forecast)
Annual dividend (After adjustment)	55.60 yen	60.00 yen	64.00 yen
Annual dividend (Before adjustment)	278 yen	300 yen	320 yen
Dividend payout ratio (%)	35.3	35.2	35.3

New Mid-Term Management Plan (FY2026 to FY2028)

The company announced the Phase 2 Mid-Term Management Plan (2026-2028) under its long-term vision “Shibaura Vision 2033.” In the Phase 1 review, results surpassed the mid-term plan figures initially announced in May 2023 in each fiscal year, and operating income set record highs for four consecutive years. In Phase 2, the company aims to achieve consolidated net sales of 100.0 billion yen or more ahead of schedule within the period of Phase 2, to achieve ROS of 20% or higher during the period of the vision, and to maintain ROE of 20% or higher during the period of the vision. The portfolio strategy pursues sustained growth as an SPE player: the SPE field accounted for 75.8 billion yen, or 86% of net sales, in FY2025, and the company expects the SPE field to account for 90% or more of business in FY2028, with GNT (global niche top) products accounting for 80% or more of products in the SPE field. The service business expanded from 12.9 billion yen in FY2022 to 22.8 billion yen in FY2025, and the company will drive further scaling up of the service business. For resource allocation, the Phase 2 three-year cumulative forecast includes an investment fund of approximately 44.0 billion yen, shareholder returns of approximately 10.5 billion yen, R&D expenses of approximately 13.5 billion yen and R&D-related equipment of approximately 11.0 billion yen.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.