Semiconductor Equipment and Services

Disco Corporation

Disco Corp Announces Q1 2025 Financial Results

6146

Disco Corporation reported strong Q2 growth for fiscal year 2025, with net sales of 194,537 million yen (up 8.7%) and operating income of 78,871 million yen (up 3.8%). Net income rose to 55,913 million yen (up 4.6%), and the equity ratio improved to 79.2%. The company revised its dividend forecast to 124.00 yen per share. Despite anticipating a slight decline in operating and ordinary income for Q3, Disco remains optimistic about long-term growth in the semiconductor market, supported by innovations and expansions.

Tip Ranks

Disco Corporation Reports Strong Q2 Growth in 2025

DISCO Corporation has announced an interim dividend of JPY 129.00 per share for the half year ended September 30, 2025, payable on December 1, 2025. This is an increase from JPY 124.00 per share paid the previous year. The total dividend amount is JPY 13,987 million, with a payout ratio set at 25% of consolidated net income, reflecting the company's policy to link dividends with performance.

marketscreener

Disco Corporation Announces Interim Dividend for the Half Year Ended September 30, 2025, Payable on December 1, 2025

Disco Corporation reported Q2 FY2025 net sales of ¥104.6 billion, an 8.7% increase from FY2024. Gross profit was ¥72.7 billion with a margin of 69.5%. Operating income rose 4.3% to ¥44.4 billion, yielding a margin of 42.4%. Net income reached ¥32.1 billion, up 8.1% year-on-year, with a margin of 30.7%. Compared to the previous quarter, net sales increased by 16.4%. Overseas sales constituted 89.9% of total sales.

Reuters

Disco Corporation Reports Q2 Net Sales of ¥104.6 Billion and Net Income of ¥32.1 Billion

Disco Corporation (TSE:6146) has achieved a remarkable 386% increase in share price over the past five years, with a total shareholder return (TSR) of 430%, largely due to dividend payments. Despite a recent 4% drop in share price, the company's earnings per share (EPS) grew at an annual rate of 34%, closely aligning with the share price increase. However, shareholders faced a 6% loss in the past year, contrasting with the broader market's 24% gain. Investors are advised to consider fundamental metrics for long-term growth potential.

Simplywall

Disco's (TSE:6146) five-year total shareholder returns outpace the underlying earnings growth

Disco Corporation reported its 1Q FY2025 results, revealing net sales of 89.9 billion yen, down 25.5% QoQ but up 8.6% YoY. Gross profit increased 6.2% YoY to 61.3 billion yen, while net income rose slightly by 0.2% YoY to 23.8 billion yen, despite a 38.5% decline from the previous quarter. Operating income was 34.5 billion yen, a 3.3% YoY increase but a 33.4% QoQ decrease, with an operating income margin of 38.3%, falling below 40% for the first time in six quarters. No future guidance was provided.

Disco Corporation Reports 1Q FY2025 Results: Net Sales Down 25.5% QoQ, Net Income Slightly Up 0.2% YoY

Disco Corporation (DSCSY, TSE:6146) specializes in precision machines and tools for semiconductor manufacturers, focusing on dicing, grinding, and polishing. Despite a 50% stock decline since July 2024, it remains fairly valued. Disco dominates the global market with a 50% share in dicers and grinders, significantly outpacing competitors like Accretech. The company fosters a unique meritocratic culture, contrasting with typical Japanese corporate structures, which may contribute to its superior performance. Disco is viewed as a "wonderful business" at a fair price, reflecting its strong market position and innovative practices.

GuruFocus

Disco Corp:A Wonderful Japanese Hidden Gem

Disco Corporation (TSE:6146) will increase its dividend to ¥245.00 on June 24, raising the yield to 1.1%. The dividend is well-covered by cash flow and earnings, with an estimated payout ratio of 34% for the next year. Despite past instability, Disco's earnings per share have grown at 36% annually over the last five years, indicating potential for future dividend growth. Overall, the increase in dividend is seen as a positive sign of sustainability, although investors should be aware of one warning sign before investing.