TOWA Corporation (6315): FY2025 Results Summary — Record Net Sales, Lower Profit, and a Sharp Rebound Planned for FY2026

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

TOWA Corporation, a maker of semiconductor molding and singulation equipment, reported FY2025 net sales of 543.6 (100 Million yen), up 8.8 or 1.7% year on year, while operating profit fell 19.6 or 22.1% to 69.1 and net profit fell 35.2 or 43.4% to 45.9. Orders rose 25.6% year on year to 595.6, which the company describes as the second highest orders ever. For FY2026 the company forecasts net sales of 640.0 (+17.7%) and operating profit of 102.4 (+48.0%), and plans to raise the annual dividend by 4.0 yen to 24.0 yen per share.

Consolidated Results (Full-Year Actual)

Net sales came in slightly below the revised FY2025 forecast of 545.0, at 543.6 (-1.3, or -0.2% versus forecast). Operating margin narrowed to 12.7% from 16.6% in FY2024. Ordinary profit was 69.4 (-26.1% YoY) and net profit, defined in the materials as profit attributable to owners of parent, was 45.9 (-43.4% YoY). The company states that although sales increased, profit decreased due to fluctuations in the product mix and the impact of additional costs associated with initial deliveries.

Item (100 Million yen)	FY2024 Results	FY2025 Results	YoY	FY2025 Forecast (Revised)	Vs.Fcst
Net Sales	534.7	543.6	+8.8 (+1.7%)	545.0	-1.3 (-0.2%)
Operating Profit	88.8	69.1	-19.6 (-22.1%)	70.0	-0.8 (-1.2%)
Operating margin	16.6%	12.7%	-3.9pt	12.8%	-0.1pt
Ordinary Profit	94.0	69.4	-24.5 (-26.1%)	70.0	-0.5 (-0.8%)
Net Profit	81.2	45.9	-35.2 (-43.4%)	49.5	-3.5 (-7.2%)

Orders, which the materials present as a separate indicator from net sales, totalled 595.6 (100 Million yen) for FY2025, up 25.6% year on year. Quarterly orders were 104.3 in 1Q, 146.1 in 2Q, 196.2 in 3Q and 149.0 in 4Q, against quarterly net sales of 80.8, 153.7, 134.8 and 174.3. The order backlog at March-end stood at 301.4. The company says orders remained strong from the second quarter onward, mainly for AI and data centers, and that orders for compression equipment and molds reached a record high due to increased investment in memory and advanced packages. On the sales side, it states that sales for AI and data centers, such as memory and advanced packages, were strong, recording record highs, and that sales of singulation equipment increased significantly due to increased investment in memory.

The operating profit bridge shows a decline of 1,963 million yen, from 8,880 million yen in FY2024 to 6,917 million yen in FY2025, on net sales of 53,479 million yen and 54,365 million yen respectively (yen amounts are rounded down to millions in the materials). The impact on gross profit was (1,535), made up of +414 from the increase in net sales, (1,257) attributed to an increase in upfront cost burden associated with first-unit projects requiring a high level of development elements and to a decline in the proportion of high-margin products with an increase in low-margin projects, and (692) from an increase in development cost included in manufacturing cost, etc. An increase in SG&A accounted for a further (428).

Segment Results

Semiconductor, the largest business, grew 2.2% to 403.9 and came in 4.1 above the revised forecast. Medical Device rose 9.9% to 24.8 and New Business edged up 0.6% to 94.7, although New Business fell 5.3 short of its 100.2 forecast. Laser declined 11.0% to 20.0, essentially in line with its 20.0 forecast.

Segment (100 Million yen)	FY2024 Results	FY2025 Results	YoY	FY2025 Forecast (Revised)	Vs.Fcst
Net Sales	534.7	543.6	+8.8 (+1.7%)	545.0	-1.3 (-0.2%)
Semiconductor	395.3	403.9	+8.6 (+2.2%)	399.8	+4.1 (+1.0%)
Medical Device	22.6	24.8	+2.2 (+9.9%)	25.0	-0.1 (-0.7%)
New Business	94.2	94.7	+0.5 (+0.6%)	100.2	-5.3 (-5.4%)
Laser	22.6	20.0	-2.5 (-11.0%)	20.0	+0.0 (+0.4%)

Regional Breakdown (Destination-Based)

On a destination basis, China remained the largest sales region at 222.3 (40.9% of net sales), up from 192.1 (35.9%) in FY2024. Taiwan rose to 72.3 (13.3%) and Japan to 69.1 (12.7%), while Korea fell to 49.2 (9.0%) and Other Asia fell to 104.2 (19.2%). Europe & America was broadly flat at 26.5 (4.9%). In the Japan figure, the materials note the internal split from left as Semiconductor Business (including new businesses), Medical Device Business and Laser Business, shown as 27.4, 24.7 and 17.1 for FY2025 against 22.0, 22.4 and 17.5 for FY2024.

Region (100 Million yen)	FY2024	FY2025
Japan	61.9 (11.6%)	69.1 (12.7%)
Taiwan	60.0 (11.2%)	72.3 (13.3%)
Korea	58.9 (11.0%)	49.2 (9.0%)
China	192.1 (35.9%)	222.3 (40.9%)
Other Asia	135.5 (25.3%)	104.2 (19.2%)
Europe & America	26.4 (4.9%)	26.5 (4.9%)

Regional order composition, again destination-based and a separate indicator from sales, was China 233.0 (39.1%), Taiwan 95.7 (16.1%), Japan 78.8 (13.2%), Other Asia 103.8 (17.5%), Korea 56.2 (9.4%) and Europe & America 28.1 (4.7%) in FY2025, versus China 167.9 (35.4%), Taiwan 64.0 (13.5%), Japan 65.7 (13.8%), Other Asia 110.4 (23.3%), Korea 50.7 (10.7%) and Europe & America 15.6 (3.3%) in FY2024.

FY2026 Forecast

For FY2026 the company forecasts net sales of 640.0 (+96.3, or +17.7% YoY) and operating profit of 102.4 (+33.2, or +48.0%), lifting the operating margin by 3.3pt to 16.0%. Ordinary profit is forecast at 102.4 (+47.4%) and net profit at 70.0 (+52.4%).

Item (100 Million yen)	FY2025 Results	FY2026 Forecast	Variance	YoY
Net Sales	543.6	640.0	+96.3	+17.7%
Operating Profit	69.1	102.4	+33.2	+48.0%
Operating margin	12.7%	16.0%	+3.3pt	–
Ordinary Profit	69.4	102.4	+32.9	+47.4%
Net Profit	45.9	70.0	+24.0	+52.4%

By segment, Semiconductor is forecast at 484.3 (+80.3, or +19.9%), Laser at 32.5 (+12.4, or +61.9%), New Business at 97.7 (+2.9, or +3.1%) and Medical Device at 25.5 (+0.6, or +2.5%).

The market outlook slide guides quarterly orders of 150-170 (100 Million yen) in each of 1Q through 4Q of FY2026, against quarterly sales of 160 in each quarter. The company says investment in AI and data centers continues to drive growth, that investment in mass production of PLP for advanced packages is expected to start, and that stable sales are expected based on the order backlog and the current order level. On profit, it says margins are expected to improve year on year with the sales increase, and that it will prioritize strengthening the market position in WLP while expecting a gradual improvement in profit margins.

Shareholder Returns

Dividends were 20.0 yen per share for FY2025 and are forecast at 24.0 yen for FY2026. The materials state: “We plan to increase the dividend by 4.0 yen to 24.0 yen per share, in line with our policy of stable and continuous dividend payments.” Capital expenditure was 41.9 (100 Million yen) in FY2025 and is planned at 55.0 in FY2026, covering the smart factory, increased production capacity through new or updated production facilities at each factory, enhancement of laboratory capabilities and investment for DX; the company adds that M&A and other initiatives will be implemented proactively.

Item	FY2025 Records	FY2026 Forecast
Capital Expenditure (100 Million yen)	41.9	55.0
Dividends (yen)	20.0	24.0

Topics

On the market environment, the company says the semiconductor market is being driven by growth in AI-related applications such as HBM, GPUs and AI accelerators; that memory manufacturers are increasing their investments in HBM mass production against the backdrop of strong demand; that production using MUF technology continues due to cost and technical challenges; that investment in advanced packaging by OSAT companies is increasing for custom ASICs; and that an increase in PLP investment is expected to expand production capacity and improve manufacturing efficiency.

By region, the order outlook cites solid investment in the domestic production of EVs and power modules in China and expanding OSAT production in response to increased demand for AI servers; resilient AI and data center demand in Taiwan, with HBM investment starting after the second half of the year due to customer factory space constraints; continued related investment in Korea against tight memory supply and demand, with PLP mass production investment starting after the second half of the year; and, in Other Asia, currently increasing investment in general-purpose memory plus expansion of investment associated with the start of mass production in India.

The company also presented INNOMS, positioned as “Molding innovation IV” and aimed at halving semiconductor mass production costs. Listed features are an approximately 50% reduction in mass production costs, double productivity per unit, an approximately 40% reduction in footprint, approximately 50% lower power consumption with an approximately 25% reduction in consumables and materials, and broad package compatibility covering memory, logic, QFN and RF modules.

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.