Q2 net income +255% on non-operating factors as operating income fell 24%; capex raised to $330M

Filed June 11, 2026 · Period ending May 3, 2026 · Compared to 10-Q Jun 11, 2025 · ~2 min read

Key Changes

• high

  Net income rose 254.7% to $31.4M, but operating income fell 24.3% to $42.2M — the bottom-line gain came from a $36.1M favorable swing in below-the-line items (non-operating/other +$37.5M, income tax -$4.9M, noncontrolling interest +$3.5M), primarily FX gains reversing prior-year losses, not from operations.

  MD&A: Foreign Currency Impact & Segment Reporting verify on EDGAR →
• high

  Gross margin compressed 560 basis points year-over-year to 31.3% (from 36.9%), driven by higher labor, benefits, material, and manufacturing costs plus unfavorable product mix — reversing the prior year's margin expansion from cost reductions.

  MD&A: Gross Margin verify on EDGAR →
• high

  Capital expenditure guidance increased 65% to $ 56.7 for FY26 (from $ 65.8 in FY25), reflecting higher planned investment in manufacturing equipment to serve high-end and mainstream photomask markets and replace end-of-life systems.

  MD&A: Capital Expenditure Guidance verify on EDGAR →