Updated Mar 23, 2026 by Towa
TOWA Corporation reported a significant decline in profitability for the nine months ended December 31, 2025, with operating profit falling 43.5% to 3,685 million yen and net profit dropping 49.0% to 2,627 million yen.
Consolidated net sales decreased by 5.9% year-on-year to 36,930 million yen, driven by a shift in product mix, increased development costs, U.S. tariff policies, and weak demand in the automotive semiconductor sector.
The Semiconductor Manufacturing Equipment segment, the company's primary revenue driver, saw a 6.0% decline in sales to 33,940 million yen.
The Laser Processing Machine business recorded a 20.0% revenue decline and an operating loss of 86 million yen, while the Medical Device segment grew by 7.8%.
Despite current financial headwinds, the company achieved its second-highest level of quarterly orders on record in Q3, fueled by strong demand for AI and data center-related memory applications.
Management has revised full-year forecasts downward due to higher initial shipment costs and delays in revenue recognition from mass production investments, though they anticipate a recovery supported by a robust order backlog.
TOWA Corporation reported a significant decline in profitability for the nine months ended December 31, 2025, with operating profit falling 43.5% to 3,685 million yen and net profit dropping 49.0% to 2,627 million yen.
Consolidated net sales decreased by 5.9% year-on-year to 36,930 million yen, driven by a shift in product mix, increased development costs, U.S. tariff policies, and weak demand in the automotive semiconductor sector.
The Semiconductor Manufacturing Equipment segment, the company's primary revenue driver, saw a 6.0% decline in sales to 33,940 million yen.
The Laser Processing Machine business recorded a 20.0% revenue decline and an operating loss of 86 million yen, while the Medical Device segment grew by 7.8%.
Despite current financial headwinds, the company achieved its second-highest level of quarterly orders on record in Q3, fueled by strong demand for AI and data center-related memory applications.
Management has revised full-year forecasts downward due to higher initial shipment costs and delays in revenue recognition from mass production investments, though they anticipate a recovery supported by a robust order backlog.