Nomura Micro Science (6254): FY2025 Results Summary — Sales Nearly Halve as US Projects Run Their Course, Record Order Outlook Ahead

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: The company’s results briefing labels the fiscal year ended March 31, 2026 as “FY2026” and the following year as “FY2027”; japan-equity.com classifies the most recently completed fiscal year as FY2025 in the title and URL, while all figures, tables and year labels below follow the materials as reported. The deck is dated May 22, 2026 and states on its cover that it was “Revised on June 16, 2026”; the revised version is the source used here.

Nomura Micro Science reported sharply lower results for FY2026, with net sales of 56,245 million yen, down 41.6% year on year, and operating income of 6,667 million yen, down 56.6%. The company attributes the decline to the completion of large-scale water treatment equipment projects in the US that had driven the previous year, together with an increase in selling, general and administrative expenses. Net sales fell short of the initial plan of 60,000 million yen because of delays in the start of certain construction projects, but operating income and ordinary income exceeded plan, supported by cost reductions achieved through reforms to the engineering process. For FY2027 the company forecasts net sales of 97,000 million yen and operating income of 16,000 million yen, and expects both order intake and order backlog to reach record-high levels.

Consolidated Results (Full-Year Actual)

The presentation shows a decline across every profit line. Gross profit margin nevertheless improved to 22.6% from 21.9%, and came in above the initial plan of 20.1%. Achievement rates against the initial plan were 93.7% for sales, 107.5% for operating income, 108.6% for ordinary income and 99.5% for profit attributable to owners of parent.

Item (millions of yen)	FY25 Results	FY26 Results	Amount of increase/decrease	Rate of increase/decrease	FY26 Initial plan	Achievement rate
Sales	96,359	56,245	-40,114	-41.6%	60,000	93.7%
Gross profit	21,110	12,707	-8,403	-39.8%	12,065	105.3%
Gross profit margin	21.9%	22.6%	–	–	20.1%	–
Operating income	15,372	6,667	-8,704	-56.6%	6,200	107.5%
Operating income ratio	16.0%	11.9%	–	–	10.3%	–
Ordinary income	13,399	5,629	-7,770	-58.0%	5,184	108.6%
Ordinary income ratio	13.9%	10.0%	–	–	8.6%	–
Profit attributable to owners of parent	10,199	3,818	-6,381	-62.6%	3,837	99.5%
Current income ratio	10.6%	6.8%	–	–	6.4%	–

The balance sheet shows total assets of 110,290 million yen at the end of FY26, down 6,492 million yen, with contract assets rising to 77,360 million yen while cash and deposits fell to 10,425 million yen. Net assets increased by 2,838 million yen to 39,852 million yen. Cash flow from business activities turned positive at 4,363 million yen against -20,202 million yen a year earlier, and free cash flow was 3,213 million yen versus -22,944 million yen.

Segment and Regional Breakdown

Within the water treatment system business, sales of water treatment systems fell to 36,723 million yen while maintenance and related sales rose to 18,626 million yen; the presentation notes that maintenance orders remained firm across regions, mainly from semiconductor-related companies, up 20% year on year. The water treatment equipment business as a whole decreased 41.3% year on year and other businesses decreased 56.5%, as sales of piping materials for large semiconductor manufacturing facilities have peaked. By region, US sales dropped to 10,174 million yen from 52,324 million yen, while Korea rose to 9,586 million yen as new large-scale projects progressed. By industry, semiconductors accounted for 90.0% of sales, pharmaceuticals 5.3%, FPD 0.7% and others 4.0%.

Breakdown of sales (millions of yen)	FY26	FY25
Water treatment systems	36,723	78,767
Maintenance, etc.	18,626	15,537
Other businesses	895	2,055
Japan	23,303	25,213
Korea	9,586	3,804
China	9,394	10,704
Taiwan	3,287	2,450
US	10,174	52,324
Others	499	1,861
Total	56,245	96,359

Orders Received and Order Backlog

Orders received and order backlog are reported separately from net sales. Order intake fell 49.5% year on year to 47,694 million yen, mainly due to the absence of the large-scale water treatment equipment projects, primarily in the US, that were recorded in the previous fiscal year, and reached only 40.7% of the initial plan of 117,229 million yen. Order backlog at the end of the term stood at 32,219 million yen, down 21.0%. By region, Taiwan received orders for new large-scale water treatment equipment projects during the year.

Orders received by region (millions of yen)	FY26	FY25
Japan	12,693	15,273
Korea	4,205	9,721
China	11,394	7,468
Taiwan	10,474	1,802
US	5,254	53,478
Others	3,671	6,786
Total	47,694	94,531

FY2027 Forecast

The company guides for a strong rebound, with net sales of 97,000 million yen (up 72.5%) and operating income of 16,000 million yen (up 140.0%), lifting the operating income ratio to 16.5%. The recovery is weighted to the second half, where sales are forecast at 62,500 million yen (up 101.3%) against 34,500 million yen in the first half. Orders received are forecast at 164,780 million yen and order backlog at 100,000 million yen, which the presentation describes as record-high levels, on the back of strong and increasingly large-scale semiconductor-related capital investment. Sales by region are forecast at 42,490 million yen for the US, 18,935 million yen for Japan, 13,506 million yen for China, 11,410 million yen for Korea, 7,504 million yen for Taiwan and 3,151 million yen for others.

Item (millions of yen)	FY26 Results	FY27 Full-year forecast	Amount of increase/decrease	Growth rate
Sales	56,245	97,000	40,754	72.5%
Gross profit	12,707	22,870	10,162	80.0%
Gross profit margin	22.6%	23.6%	–	–
Operating income	6,667	16,000	9,332	140.0%
Operating income ratio	11.9%	16.5%	–	–
Ordinary income	5,629	15,000	9,370	166.5%
Profit attributable to owners of parent	3,818	11,100	7,281	190.7%
EPS	100.36 JPY	289.90 JPY	189.54 JPY	188.9%
Orders received	47,694	164,780	–	–
Order backlog at end of term	32,219	100,000	–	–

On the demand backdrop, the presentation notes that demand for generative AI and data centers is expanding rapidly for both logic semiconductors such as GPUs and memory semiconductors including HBM and NAND for SSDs, and is expected to remain at a high level from 2026 onward. In pharmaceuticals, investment in regenerative medicine, biopharmaceuticals and CDMO expansion continues, supported by Japanese government subsidies for strengthening pharmaceutical-related supply chains.

Shareholder Returns

The dividend per share for FY26 was 81.00 JPY, up from 80.00 JPY in FY25; the presentation states that the company has increased dividends for 11 consecutive fiscal years since FY2016 on an actual-results basis. The payout ratio rose to 81.1% because net sales and profit declined. The company states that it prioritized stable shareholder returns based on the outlook for medium- to long-term corporate growth despite a payout ratio differing from previous levels. For FY27 it forecasts a dividend of 85.00 JPY with a payout ratio of 29.3%, and going forward it targets a dividend payout ratio of 30% with balanced cash allocation while maintaining a sound financial base. A 1:4 stock split was carried out on April 1, 2024, and past dividends per share are shown on a post-split basis for comparison.

Item	FY24	FY25	FY26	FY27 (Forecast)
Dividend per share	62.50 JPY	80.00 JPY	81.00 JPY	85.00 JPY
Dividend payout ratio	29.4%	29.7%	81.1%	29.3%

Medium-Term Management Plan TTT-26

FY2026 is positioned as the final fiscal year of the medium-term management plan TTT-26 (Together Toward Transformation-26). The plan targets sales of 101 billion JPY and operating income of 14.6 billion JPY with ROE of 25% or greater and ROIC of 22% or greater for FY March 2027, and sales of 120 billion JPY and operating income of 19.2 billion JPY with ROE of 30% or greater and ROIC of 25% or greater for FY March 2031. On capital efficiency, the company puts its estimated cost of equity based on CAPM at around 13-15%; ROE declined to 10.1% in FY2026 on the significant decrease in net sales, although the five-year historical average exceeds 25%, and earnings levels are expected to recover in FY2027. PBR increased from 2.49x to 2.95x, remaining above 1x since FY2021.

Medium-term targets	Sales	Operating income	ROE	ROIC
FY March 2027	101 billion JPY	14.6 billion JPY	25% or greater	22% or greater
FY March 2031	120 billion JPY	19.2 billion JPY	30% or greater	25% or greater

On progress, the company reports that local subsidiary operations began in Singapore, that it is strengthening initiatives for semiconductor-related projects in India and Southeast Asia beyond TATA, and that it is pursuing pharmaceutical-related projects in South Korea and the US. In engineering process reform it introduced actual prefabrication construction equipment at project sites, achieving cost reductions and shorter delivery times. In R&D it established what it describes as the world’s first 5 nm particle measurement technology for trace analysis, began customer evaluation of endotoxin monitors, and constructed a new development building for ultrapure water production systems for cutting-edge semiconductors. Capital investment was 1,419 million yen in FY26 against depreciation of 1,692 million yen, and R&D expenses were 493 million yen, forecast to rise to 750 million yen in FY27 as depreciation on the new development building is planned to be recorded as R&D expenses.

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.