Earnings call transcript: SCREEN Holdings lifts outlook after soft Q1 in 2026

SCREEN Holdings, a Japanese manufacturer of semiconductor equipment, raised its full-year outlook after reporting a soft first-quarter (Q1) in 2026. The company attributed the decline in sales to timing issues, including a project that was delayed from Q1 to Q2. Despite this, SCREEN lifted its full-year sales forecast to JPY 743 billion, a new record if achieved.

The company also pointed to stronger demand ahead, with wafer fab equipment market growth for calendar 2026 expected to exceed 20%, with 30% growth still possible. SCREEN's shares rose 1.96% to $13,780, recovering sharply from their 52-week low. The company's inventory rose to JPY 192 billion from JPY 158 billion in the prior quarter, indicating stronger expected shipments.

The full-year sales guidance for SPE is JPY 360 billion, with a margin guidance of 27.4%. The company's shares are now about 144% above their 52-week low and roughly 30% below their 52-week high, suggesting the market has not fully priced in the company's longer-term growth case. Despite the soft first quarter, the company's confidence in second-half execution and stronger guidance were well-received by investors.