Torex Semiconductor (6616): FY2025 Results Summary — Higher Sales and a Return to Net Profit

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

Note: Torex Semiconductor does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recent completed fiscal year as FY2025, while the company’s materials label the period as the fiscal year ended March 2026 (FY3/2026).

Torex Semiconductor announced its consolidated results for the full fiscal year ended March 2026 (FY3/2026). Sales recovered in all regions at both Torex on a standalone basis and at subsidiary Phenitec Semiconductor, and together with the effect of cost reductions the company posted higher sales and higher profit. Net sales rose 4.7% year on year to 25,073 million yen, operating profit swung to a profit of 1,085 million yen from ▲632 million yen in the previous year, and profit attributable to owners of parent also returned to a profit of 1,159 million yen from ▲2,358 million yen in the previous year. Against the company’s forecast, sales were in line with expectations, but on the profit side, owing to factors such as foreign exchange, the company announced an upward revision on May 11.

Consolidated Results (Full Year)

For the full year of FY3/2026, consolidated net sales were 25,073 million yen (+4.7% year on year), operating profit was 1,085 million yen (a return to profit from ▲632 million yen in the previous year, with an operating margin of 4.3%), ordinary profit was 1,268 million yen (a return to profit from ▲820 million yen in the previous year), and profit attributable to owners of parent was 1,159 million yen (a return to profit from ▲2,358 million yen in the previous year). EPS was 109.38 yen (versus ▲214.62 yen in the previous year). The overseas sales ratio was 68.2% (versus 69.4% in the previous year). Profit in the previous year was affected by a foreign exchange loss of 271 million yen and an impairment loss of 1,115 million yen, while profit in the year under review was affected by a foreign exchange gain of 162 million yen.

Item	FY3/2026 Actual	FY3/2025 Actual	YoY Change
Net sales	25,073	23,957	4.7%
Operating profit	1,085	▲632	–
Operating margin	4.3%	▲2.6%	6.9pt
Ordinary profit	1,268	▲820	–
Profit attributable to owners of parent	1,159	▲2,358	–
EPS (yen)	109.38	▲214.62	–
Overseas sales ratio	68.2%	69.4%	▲1.2pt

Results by Segment (Torex / Phenitec)

Torex on a standalone basis saw a recovery in all regions and higher sales, with a recovery in all fields other than automotive equipment. Phenitec Semiconductor also saw a recovery in all regions and higher sales, with a recovery in all fields other than industrial equipment. Owing to the increase in sales and the effect of cost-containment initiatives, operating profit increased at both Torex and Phenitec.

Company	Metric	FY3/2026 Actual	FY3/2025 Actual
Torex	Net sales	10,392	9,871
Phenitec (contribution)	Net sales	14,681	14,086
Torex	Operating profit	511	▲5
Phenitec (contribution)	Operating profit	574	▲627

Full-Year Forecast

For the fiscal year ending March 2027 (FY3/2027), assuming a continued recovery in semiconductor market conditions from the previous year, the company forecasts net sales of 28,000 million yen (+11.7% year on year), operating profit of 1,300 million yen (+19.8%, with an operating margin of 4.6%), ordinary profit of 1,300 million yen (+2.5%), and profit attributable to owners of parent of 1,400 million yen (+20.7%). Profit attributable to owners of parent includes an expected gain of approximately 600 million yen on the transfer of the equity interest in TVS. EPS is projected at 132.17 yen, and the assumed average exchange rate is 155.0 yen to the US dollar.

Item	FY3/2027 Forecast	FY3/2026 Actual	YoY Change
Net sales	28,000	25,073	11.7%
Operating profit	1,300	1,085	19.8%
Operating margin	4.6%	4.3%	0.3pt
Ordinary profit	1,300	1,268	2.5%
Profit attributable to owners of parent	1,400	1,159	20.7%
EPS (yen)	132.17	109.38	–

Shareholder Returns

On dividends, the company’s policy for the time being targets a consolidated payout ratio of 20% or higher, as profit distribution reflecting the level of results, and a dividend on equity (DOE) ratio of around 3%, to expand stable and continuous shareholder returns. The annual dividend is 56 yen for FY3/2025, FY3/2026 and the FY3/2027 forecast alike; the payout ratio for FY3/2026 was 51.2%, and that for FY3/2027 is expected to be 42.4%.

Item	FY3/2025 (Actual)	FY3/2026 (Actual)	FY3/2027 (Forecast)
Annual dividend (yen)	56	56	56
Payout ratio	–	51.2%	42.4%
DOE	3.2%	3.3%	3.1%

Topics

On November 17, 2025, the company entered into an agreement with PANJIT, a global IDM of semiconductor products, to transfer 95% of its equity interest in TVS, a subsidiary that handles back-end processing. The transfer is scheduled to be completed during the current fiscal year, with a gain on transfer of approximately 600 million yen expected. By drawing on PANJIT’s manufacturing technology capabilities and the company’s own design and development capabilities as a fabless manufacturer, the two companies aim to generate mutual synergies, advancing packaging technology and enhancing overall competitiveness.

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.