SCREEN Holdings Co., Ltd.
7735・Prime Market・Electric Appliances
Business
SCREEN Holdings, founded in 1943 and headquartered in Kyoto, is a precision equipment manufacturer operating under a holding company structure. Its core Semiconductor Production Equipment (SPE) Business accounts for approximately 80% of net sales, boasting the world's top share centered on cleaning equipment. The Graphic Arts Equipment (GA) Business offers digital printing presses for commercial and package printing, while the Display Manufacturing and Film-Forming Equipment (FT) Business handles equipment for OLED applications. The Printed Circuit Board Equipment (PE) Business provides direct imaging exposure systems. Major customers include leading semiconductor foundries and memory manufacturers such as TSMC, with sales to TSMC reaching ¥88,507 million (14.6% of net sales) in FY2026 (ending March 2026).
Business Model
In addition to the development, manufacturing, and sales of equipment, post-sales (recurring) revenue from maintenance services, consumables, and ink sales after delivery underpins the company's revenue base. In the SPE Business, post-sales revenue has increased steadily, contributing to improved profitability. In the GA Business, the Recurring Business centered on ink sales serves as a stable revenue source. The operating margin for FY2026 (ending March 2026) remains at a high level of 20.2%.
Company Strengths
SCREEN boasts the world's top share in semiconductor wafer cleaning equipment, having sequentially built and expanded the S³ plant complex (S³-1 through S³-6) at its Hikone Business Site to continuously expand production capacity. Through an additional agreement with IBM for next-generation cleaning process development and collaboration with overseas research institutions such as imec, the company continues to strengthen its technological advantage.
Post-sales revenue from maintenance services, consumables, ink sales, etc. following equipment delivery is accumulating steadily across each business segment. In the SPE Business, the increase in post-sales revenue in FY2026 (ending March 2026) directly contributed to improved profitability, while in the GA Business, the Recurring Business centered on ink underpins revenue and profit.
The equity ratio at the end of FY2026 (ending March 2026) reached 67.4%, and all funding requirements for the fiscal year under review were covered entirely by internal funds. The long-term issuer rating from the Japan Credit Rating Agency remains A+ (Outlook: Stable). Operating cash flow increased by more than 30% year on year to ¥92,707 million, giving the company the financial strength to pursue both growth investment and shareholder returns.
ENVALITH's Perspective
Performance Trend
Revenue achieved four consecutive periods of growth, rising from ¥411,865 million in FY2022 (ending March 2022) to ¥625,269 million in FY2025 (ending March 2025), but FY2026 (ending March 2026) saw the first decline, coming in at ¥605,748 million (down 3.1% year on year). Operating profit also declined to ¥122,522 million (down 9.7% year on year), and profit attributable to owners of parent decreased to ¥92,003 million (down 7.5% year on year). The main causes were a decrease in equipment sales to foundries and an increase in fixed costs (SG&A expenses of ¥110,652 million, up 11.1% year on year). As an external factor, the decline in sales to China and the United States also had an impact. Meanwhile, operating cash flow increased 30.2% year on year to ¥92,707 million, supported by a decrease in inventory (a cash inflow of ¥12,406 million). For FY2027 (ending March 2027), the company forecasts revenue of ¥725,000 million and operating profit of ¥150,000 million, representing a recovery to record-high levels.
Growth Strategy
Advancing the medium-term plan "Value Up Further 2026" along three axes: expanding SPE market share, cultivating new businesses, and strengthening production capacity
In order to capture demand for equipment used in advanced logic, DRAM, and chiplets amid expanding use of generative AI, the company increased R&D expenses to ¥37,777 million (up 19.1% year on year) to maintain its technological advantage. SPE sales for FY2027 (ending March 2027) are forecast at ¥600,000 million, a substantial increase from the FY2026 (ending March 2026) actual of ¥485,982 million.
Driven by increased sales of OLED-related equipment and improved profitability, the operating margin reached 19.2% in FY2026 (ending March 2026). Supported by a recovery in capital expenditure in the FPD industry, FT sales for FY2027 (ending March 2027) are forecast at ¥47,000 million (up 5.0% from the FY2026 (ending March 2026) actual of ¥44,755 million). The company will also continue to promote the expansion of application fields for its coating technology.
The company is working to transition new businesses in Advanced Semiconductor Packaging-Related Products, Life Science Equipment, and Hydrogen-Related Products within the "Others" segment from the cultivation phase to the commercialization phase. Sales to external customers in FY2026 (ending March 2026) expanded to ¥8,118 million (up 35.3% year on year). Continued growth is expected in FY2027 (ending March 2027), with full-year sales forecast at ¥4,000 million.
The annual dividend for FY2026 (ending March 2026) was ¥293 (payout ratio of 30.1%), and the forecast for FY2027 (ending March 2027) is ¥175 (post-stock-split basis, payout ratio of 30.1%), maintaining the basic policy of a consolidated payout ratio of 30% or more. Effective April 1, 2026, the company implemented a two-for-one stock split, aiming to expand its individual investor base by lowering the investment unit.
Capital expenditure for FY2027 (ending March 2027) is forecast at ¥43,000 million (up 55.2% from the FY2026 (ending March 2026) actual of ¥27,710 million), and R&D expenses are also forecast at ¥43,000 million (up 13.8%), representing a substantial planned increase in investment. Depreciation expenses are also expected to increase to ¥18,000 million (up 23.5%), as the company simultaneously advances the strengthening of production capacity and technological competitiveness.
Last updated: July 19, 2026