Ulvac orders reached record in year ended June 2026
Ulvac said component supply risks and production capacity constraints limited its conversion of orders into sales and profit.
Ulvac, Inc. (TSE-6728) recorded its highest annual orders in the fiscal year ended June 2026, supported by expanding demand primarily in semiconductor and electronics markets.
Ulvac said component supply risks and limits on production capacity prevented it from fully converting the orders it secured into sales and profit, making improved profitability a management priority.
Ulvac's annual order intake rose 43.7% from the previous fiscal year.
Ulvac's annual revenue increased 7.1% from the previous fiscal year.
Ulvac's semiconductor and electronic component manufacturing equipment business received more orders than a year earlier, supported by strength in logic, memory and advanced packaging.
Ulvac's semiconductor and electronic component manufacturing equipment sales fell from the previous year because of adjustments in power device investment in Japan and China.
Ulvac's display and energy manufacturing equipment business recorded higher orders and sales than a year earlier, supported by investment in larger organic light-emitting diode panels and equipment modification projects.
Ulvac said equipment for manufacturing high-performance magnets performed well as investment aimed at diversifying supply chains in the rare-earth magnet industry moved into full swing during the fiscal year.
Ulvac's materials business posted higher orders and sales than a year earlier because factories serving the display, semiconductor and electronic component industries continued operating at high utilization levels.
Ulvac's vacuum applications business increased revenue 12.0% from the previous fiscal year.
Ulvac's group operating profit declined 26.1% from the previous fiscal year.
Ulvac's vacuum equipment business reported a profit margin of 7.2%, down from 11.0% in the previous fiscal year, reflecting a deterioration in the segment's profitability over the reporting period.
Ulvac attributed the deterioration in vacuum equipment profitability mainly to nonrecurring costs related to electric vehicles and an increase in research and development spending during the fiscal year.
Ulvac said it gives priority to business and production reform for the fiscal year ending June 2027, which it designates as a period of comprehensive reassessment and change to achieve its value improvement plan.
Ulvac plans to concentrate resources on priority areas within artificial intelligence and data center businesses, seeking stronger growth and profitability by increasing the proportion of advanced projects with greater added value.
Ulvac plans to reshape its business portfolio by selling or reducing businesses that fit its strategy less closely and reviewing the structure of its headquarters functions and fixed costs.
Ulvac said restrictions affecting strategic products and supplies of critical minerals, rare earths and semiconductor components could disrupt customer investment decisions, product shipments and installation, component supply and overseas operations.
Ulvac plans a comprehensive overhaul of production, procurement and logistics, including expanding production capacity, improving the configuration of logistics sites and shortening component procurement lead times, to strengthen its ability to turn orders into sales and profit.