Lasertec FY2026 Full Year: Revenue Down 8.3%, Orders Soar 125.7%, Sees Rebound

Lasertec's consolidated revenue for the fiscal year ended June 2026 fell 8.3% year-on-year to ¥230,485 million, with operating profit down 14.3% to ¥105,259 million. Ordinary profit declined 9.7% to ¥107,895 million, and net profit attributable to owners of the parent dropped 8.5% to ¥77,485 million. The year-on-year decline primarily reflects lower sales of semiconductor-related equipment, which decreased 17.2% to ¥168,090 million due to weak orders in the prior fiscal year. In contrast, service revenue jumped 36.5% to ¥58,646 million, driven by growing maintenance and support demand for installed systems. The operating margin remained exceptionally high at 45.7% (down from 48.8% a year earlier).

Orders staged a dramatic recovery, surging 125.7% to ¥237,504 million, and the order backlog swelled to ¥322,964 million. The surge was fueled by robust investment in data centers for agentic AI, which is driving demand for advanced semiconductors, including CPUs, GPUs and HBM, and in turn boosting orders for Lasertec's EUV mask inspection systems and other high-precision inspection tools. R&D spending rose 39.5% to ¥16,292 million, as the company accelerates development of next-generation inspection technologies.

Lasertec reports as a single segment but provides sales breakdowns by product category.

Semiconductor-related Equipment sales totaled ¥168,090 million (down 17.2% YoY), weighed by the prior period's order slump. Orders, however, rebounded strongly to ¥172,216 million (up 208.5%) and the backlog reached ¥301,303 million, driven by AI-fueled demand for advanced logic and memory chips. Lasertec's near-monopoly products, including mask and blank inspection systems for EUV lithography, saw intensifying inquiries. By region, South Korea was the largest market (¥53,856 million), with Taiwan (¥27,446 million, down from ¥51.5 billion), Japan (¥22,567 million), other Asia (¥25,865 million), and the US (¥34,799 million) all contributing.

Services revenue climbed 36.5% to ¥58,646 million, supported by regular maintenance, upgrades and parts replacement as the installed base of equipment expanded. By region, Taiwan led with ¥18,046 million, followed by the US at ¥16,782 million and South Korea at ¥11,317 million. Service orders also rose 35.8% to ¥61,791 million, reinforcing the recurring revenue stream.

Other Products (FPD inspection systems, etc.) generated ¥3,747 million (down 32.5%), reflecting a smaller market niche.

Total assets stood at ¥336,650 million, up ¥7,048 million from the prior fiscal year-end. Cash and deposits rose ¥5,416 million to ¥91,503 million, providing ample liquidity. Work in progress was nearly unchanged at ¥122,449 million but may increase as orders are fulfilled. Total liabilities fell ¥29,901 million to ¥89,800 million, mainly due to a decline in advances received to ¥44,284 million and tax payments. Net assets climbed to ¥246,850 million, pushing the equity ratio up sharply to 73.3% from 63.7%, reflecting strong retained earnings growth from net profit of ¥77,485 million, partly offset by share buybacks.

Operating cash flow decreased 37.7% to ¥48,540 million, as high pre-tax profit was absorbed by the reduction in advances and tax payments. Investing cash flow was a modest outflow of ¥1,883 million, while financing cash flow showed an outflow of ¥43,181 million (up 75.8% YoY), driven by dividend payments of ¥31,131 million and share repurchases of ¥12,003 million (over 560,000 shares) aimed at enhancing capital efficiency and shareholder returns.

The annual dividend for FY2026 was maintained at ¥329 per share (interim ¥132, final ¥197), with a payout ratio of 38.1%. For FY2027, the company plans to raise the dividend to ¥351 per share (interim ¥140, final ¥211), consistent with its policy of targeting a 35% payout ratio. Retained earnings will be allocated to R&D and capex to strengthen long-term competitiveness.

For the fiscal year ending June 2027, Lasertec forecasts revenue of ¥290,000 million (up 25.8% YoY), operating profit of ¥125,000 million (up 18.8%), ordinary profit of ¥125,000 million (up 15.9%), and net profit of ¥90,000 million (up 16.2%). The strong growth is underpinned by the sharp recovery in orders (¥237.5 billion) and a record-high backlog (¥322.9 billion), which will be recognized as sales. While no breakdown is provided, semiconductor equipment is expected to lead, supported by continued service expansion, likely setting a new all-time revenue high. The operating margin is projected at 43.1%, slightly lower than this year, partly due to assumed increases in R&D and personnel costs. The forecast appears highly achievable, though currency and geopolitical risks remain.

R&D expenses jumped 39.5% to ¥16,292 million, representing 7.1% of revenue. Key priorities include next-generation EUV high-NA mask inspection systems and innovative inspection technologies for 3D stacked devices. While capex on tangible fixed assets dipped to ¥1,492 million, investment in intangible assets and headcount continued. To attract and retain top engineering talent, the company expanded its share-based compensation, with the stock grant allowance surging from ¥687 million to ¥2,467 million. Sustained AI demand and Lasertec's technological dominance are expected to fuel a virtuous cycle of R&D-driven new revenue streams.

Lasertec identifies the following key risks:

• Geopolitical tensions, including in the Middle East, could disrupt supply chains and raise energy costs, affecting performance.
• Foreign exchange volatility: a stronger yen would reduce the value of overseas earnings, which account for a large portion of revenue; the recent yen weakness provided a tailwind that could reverse.
• Semiconductor market cycles: while AI demand is robust, a slowdown in other segments like smartphones and PCs could spill over into inspection equipment demand.
• Technological evolution: the need to continuously improve inspection accuracy and throughput requires successful R&D execution.
• Customer concentration: reliance on a small number of large customers means changes in their investment plans can significantly impact results.
• Trade and regulatory risks: US-China tensions and tighter export controls may restrict sales in certain regions.

The company aims to mitigate these risks through innovation, geographic diversification, and a strong financial position.