| Metric | This Period | Prior Year Same Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1806.4B | ¥1273.9B | +41.8% |
| Operating Income / Operating Profit | ¥292.8B | ¥137.8B | +112.5% |
| Ordinary Income | ¥312.9B | ¥153.3B | +104.1% |
| Net Income / Net Profit | ¥289.0B | ¥83.7B | +245.2% |
| ROE | 12.4% | 3.8% | - |
For the fiscal year ending March 2026, Revenue was ¥1806.4B (YoY +¥532.5B +41.8%), Operating Income was ¥292.8B (YoY +¥155.0B +112.5%), Ordinary Income was ¥312.9B (YoY +¥159.6B +104.1%), and Net Income was ¥289.0B (YoY +¥205.3B +245.2%), delivering substantial increases across all profit metrics. The primary drivers of revenue and profit growth were large demand capture in the Robotic Solutions business and the realization of operating leverage; the operating margin improved to 16.2% (up +5.4pt from 10.8% a year ago), reaching a record high. Meanwhile, Operating Cash Flow (OCF) was limited to ¥91.8B (YoY -60.8%), as sharp increases in accounts receivable and inventory pressured working capital, and Free Cash Flow (FCF) was ¥22.1B, significantly below total shareholder returns of ¥94.6B (dividends and share buybacks).
[Revenue] Revenue rose to ¥1806.4B (YoY +41.8%), a substantial increase. By segment, Robotic Solutions led with ¥1688.2B (+47.8%), accounting for 93.5% of consolidated revenue, driven by robust demand for electronic component mounting robots. Machine Tools declined to ¥97.0B (-12.5%) as weakness in the machine tools market persisted. Others totaled ¥25.1B (+9.6%), with control equipment and electronic devices performing steadily. Gross margin edged up to 36.7% (up +0.1pt from 36.6% year-ago) as fixed-cost absorption from higher sales contributed, although raw material and component cost increases were a restraining factor.
[Profit & Loss] Gross profit was ¥662.8B (+42.1%), while SG&A was ¥369.9B (+12.6%), a much lower growth rate than revenue, resulting in an SG&A ratio of 20.5% (down -5.3pt from 25.8%) and marked improvement. Consequently, Operating Income was ¥292.8B (+112.5%) with an operating margin of 16.2% (up +5.4pt), reflecting strong operating leverage. Non-operating income totaled ¥20.6B, including interest income ¥7.2B, dividend income ¥5.1B, and foreign exchange gains ¥4.3B; non-operating expenses were minor at ¥0.5B, bringing Ordinary Income to ¥312.9B (+104.1%). Extraordinary items comprised extraordinary gains ¥33.1B (gain on sale of investment securities ¥32.3B) versus extraordinary losses ¥99.6B (impairment losses ¥97.2B), a net extraordinary loss of -¥66.5B, resulting in Pre-tax Income of ¥246.4B (YoY +51.4%). After deducting income taxes of ¥88.8B (effective tax rate 36.1%), Net Income attributable to owners of the parent was ¥289.0B (+245.2%), and net margin improved to 16.0% (up +9.4pt from 6.6%). In conclusion, the company is in a strong revenue-and-profit expansion phase led by rapid demand growth in core Robotic Solutions and a decline in SG&A ratio.
Robotic Solutions achieved Revenue ¥1688.2B (YoY +47.8%), Operating Income ¥336.2B (+105.7%), and margin 19.9% (improved +3.6pt from 16.3%), combining volume expansion and margin improvement to drive consolidated performance. Capital expenditure demand in the electronic component mounting market was robust, and a shift toward higher-value products plus production efficiency gains supported margin expansion. Machine Tools recorded Revenue ¥97.0B (-12.5%) and an Operating Loss of ¥1.1B (turning from Operating Income ¥7.4B the prior year), continuing to struggle due to a weak machine tool market and fixed-cost burden. Others recorded Revenue ¥25.1B (+9.6%), Operating Income ¥0.8B (+178.0%), and margin 3.4%, achieving small-scale profitability. Segment operating income aggregated to ¥336.2B; after deducting corporate expenses ¥43.3B (prior year ¥32.1B), consolidated Operating Income was ¥292.8B. Corporate expenses are mainly general & administrative expenses and R&D.
[Profitability] Operating margin 16.2% (prior 10.8%) and net margin 16.0% (prior 6.6%) both improved significantly. ROE 12.4% (prior 4.9%) doubled year-on-year driven by expanded net margin and higher total asset turnover of 0.697x (prior 0.551x). EBITDA was ¥387.9B (21.5% of Revenue), and pre-goodwill-amortization EBITDA was ¥397.4B. ROA (based on Ordinary Income) was 11.5% (prior 6.2%), reaching industry-leading profitability levels.
[Cash Quality] OCF was ¥91.8B versus Net Income ¥289.0B, giving an OCF/Net Income ratio of 0.32x (prior 2.80x), a substantial deterioration; increases in accounts receivable and inventory were primary causes, weakening cash conversion. FCF was ¥22.1B (prior ¥119.0B), below dividend ¥70.9B and share buybacks ¥23.7B totaling ¥94.6B, indicating shareholder returns relied on cash on hand. DSO was 132 days, DIO 205 days, and CCC 289 days, showing deterioration in working capital efficiency.
[Investment Efficiency] Increase in capital expenditures and intangible assets was ¥115.8B (6.4% of Revenue), exceeding depreciation expense ¥95.1B, indicating continued growth investment. Total asset turnover improved to 0.697x (prior 0.551x), but increases in accounts receivable and inventory drove asset growth; improving asset efficiency remains a challenge.
[Financial Soundness] Equity Ratio 83.5% (prior 89.5%), Current Ratio 450.7%, Quick Ratio 405.0% indicate a highly conservative balance sheet. Interest-bearing debt is minimal; D/E ratio was 0.20x (prior 0.12x), remaining low and stable. Cash and deposits were ¥537.4B and investment securities ¥218.7B, providing very ample liquidity.
OCF was ¥91.8B (YoY -60.8%). From Pre-tax Income ¥246.4B, addbacks included Depreciation ¥95.1B and Impairment Losses ¥97.2B, while increases in trade receivables ¥291.3B and inventories ¥95.3B were major negative factors. Increase in trade payables ¥59.6B and corporate tax payments ¥46.5B also impacted, resulting in an OCF subtotal before working capital changes of ¥126.2B but actual OCF of ¥91.8B. Investing Cash Flow was -¥69.7B, driven by purchases of tangible and intangible fixed assets ¥116.1B and acquisition of investment securities ¥1.7B, partially offset by proceeds from sales ¥49.4B and redemption proceeds ¥10.0B. Financing Cash Flow was -¥90.4B, mainly due to dividend payments ¥70.9B and share repurchases ¥23.7B, partially offset by proceeds from disposal of treasury stock ¥5.3B. As a result, FCF was ¥22.1B, well below dividends and buybacks totaling ¥94.6B, and cash and cash equivalents decreased from ¥580.1B at the beginning of the period to ¥531.6B at the end, a decline of ¥48.5B. Considering foreign exchange effects of +¥19.8B, the net economic cash decline equates to ¥68.3B. The large increase in accounts receivable (+87.8%) suggests timing mismatches in shipments/acceptance or extended credit terms, and the inventory increase (+53.7%), centered on work-in-progress, raises concerns about synchronization of production and shipment. OCF/EBITDA ratio was 0.24x and OCF/Net Income ratio was 0.32x, highlighting a gap between high profitability and weak cash generation; shortening CCC and improving DSO/DIO are top priorities.
Core recurring earnings are primarily Operating Income ¥292.8B (16.2% of Revenue). Non-operating income ¥20.6B (1.1% of Revenue) comprises interest and dividend income ¥12.3B, foreign exchange gains ¥4.3B, and investment partnership operating income ¥2.2B, limited in scale and stability. The gap between Ordinary Income ¥312.9B and Net Income ¥289.0B is due to net extraordinary loss -¥66.5B (extraordinary gains ¥33.1B minus extraordinary losses ¥99.6B) and taxes ¥88.8B. Major extraordinary items were gain on sale of investment securities ¥32.3B and impairment losses ¥97.2B; while the impairment is a temporary factor, asset profitability should be reviewed. Core earning power excluding non-operating and extraordinary items should be assessed at the Operating Income level; this period saw significant improvement in core business profitability due to operating leverage. On the accrual side, OCF ¥91.8B was only 32% of Net Income ¥289.0B, with rapid increases in receivables and inventory creating divergence between profit and cash. Total Comprehensive Income was ¥226.4B; the difference from Net Income ¥289.0B (-¥62.6B) reflects cumulative effects of foreign currency translation adjustment ¥42.0B, valuation difference on available-for-sale securities ¥17.1B, and retirement benefit adjustments ¥9.9B. While currency and valuation fluctuations depend on external conditions and core earnings quality is high, weak cash conversion modestly weakens the short-term assessment of earnings quality.
The company plan for the fiscal year ending March 2027 projects Revenue ¥2110.0B (vs. this period +16.8%), Operating Income ¥436.0B (+48.9%), Ordinary Income ¥443.0B (+41.6%), EPS ¥375.37 ( +109.8%), and dividend ¥95 ( +¥5). The plan assumes further margin expansion to an operating margin of 20.7% (up +4.5pt from 16.2%), driven by continued high utilization and production efficiency in Robotic Solutions and maintenance of a low SG&A ratio. The first-half / full-year Revenue progress rate is 85.6%, indicating a high probability of achieving the plan. However, normalization of the working capital expansion observed this period (CCC 289 days) is a precondition; inventory reduction and accelerated collections to improve cash generation are key to plan attainment. Exchange rate assumptions, stability of component procurement, and progress on Machine Tools returning to profitability are also noteworthy. Dividend of ¥95 implies a payout ratio of approximately 50%, signaling a continuation of dividend increases.
Dividends were set at an annual ¥90 (interim ¥40, year-end ¥50), a substantial increase of ¥50 from prior year dividend ¥40. Total dividends were approximately ¥72.2B, representing a payout ratio of approximately 25.0% relative to Net Income attributable to owners of the parent ¥289.0B; the book payout ratio of 66.9% appears to include adjustments such as goodwill amortization. Share buybacks amounted to ¥23.7B; combined with dividends, total shareholder returns were approximately ¥95.9B, and the total return ratio was about 33.2%. With FCF ¥22.1B, dividends alone ¥72.2B and total returns ¥95.9B, shareholder returns this period relied on cash on hand. Dividend coverage (FCF/Dividends) was 0.31x and total return coverage was 0.23x, both low, indicating that sustained returns require significant improvement in OCF. With Equity Ratio 83.5% and Cash & Deposits ¥537.4B, financial strength is very robust and there is no short-term concern about the ability to maintain distributions. The company plan assumes dividend ¥95 (¥5 increase), indicating intent to continue stable increases. Going forward, the policy appears to be to balance maintaining/improving return levels with normalizing OCF through CCC reduction and prudent capex/growth investment trade-offs.
Working Capital Expansion Risk: Accounts receivable ¥653.4B (+87.8%) and inventories ¥640.8B (including work-in-progress ¥302.9B, +53.7%) increased substantially, worsening working capital efficiency with DSO 132 days, DIO 205 days, and CCC 289 days. If shipment/acceptance delays, inventory stagnation, or lapses in credit management progress, further erosion of cash generation and risks of bad debt or obsolescence losses may materialize. Synchronization of orders, production and shipments, shortening collection cycles, and inventory optimization are urgent.
Segment Concentration Risk: Robotic Solutions accounts for 93.5% of revenue and nearly all operating profit, making performance highly dependent on the investment cycle of the electronic component mounting market. In a demand slowdown, operating leverage could reverse, and fixed-cost and inventory burdens could rapidly deteriorate profits and cash. Machine Tools remains loss-making, limiting diversification benefits.
Asset Impairment & Profitability Risk: The company recorded impairment losses of ¥97.2B this period, and intangible fixed assets decreased significantly to ¥138.3B (from ¥227.5B, -39.2%). Goodwill ¥80.9B and software ¥137.2B are included; if intangible asset profitability declines, further impairment risk remains. Investment securities ¥218.7B and valuation differences ¥100.8B also carry valuation loss risk with market volatility.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 16.2% | 7.8% (4.6%–12.3%) | +8.5pt |
| Net Margin | 16.0% | 5.2% (2.3%–8.2%) | +10.8pt |
Both operating and net margins substantially exceed industry medians, delivering top-tier manufacturing profitability.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 41.8% | 3.7% (-0.4%–9.3%) | +38.1pt |
Revenue growth far outpaces the industry median, reflecting pronounced demand capture in the Robotic Solutions business.
※ Source: Company aggregation
The core Robotic Solutions business continues to deliver high-profit growth, achieving operating margin 16.2% and EBITDA margin 21.5%, industry-leading profitability. The company projects further expansion to 20.7% operating margin, but achieving this requires maintaining a low SG&A ratio and continued production efficiency gains. There is inherent risk of operating leverage reversing if the demand cycle peaks; monitoring order trends and utilization rates is important.
Working capital expansion (CCC 289 days, DSO 132 days, DIO 205 days) has manifested, and OCF ¥91.8B was only 32% of Net Income ¥289.0B. With FCF ¥22.1B versus dividends and buybacks totaling ¥94.6B, shareholder returns this period relied on cash on hand. Shortening CCC and compressing receivables and inventory are key to sustaining returns and restoring cash generation. Synchronization of orders, production and shipments, strengthening credit management, and inventory optimization are the most critical items to watch in the results.
With Equity Ratio 83.5% and Cash & Deposits ¥537.4B, financial resilience is very strong and short-term operational stability is high. However, an impairment of ¥97.2B was recorded against intangible fixed assets totaling ¥138.3B (including goodwill ¥80.9B), necessitating review of asset profitability. Going forward, improving asset efficiency while sustaining high profitability and returning Machine Tools to profit will support overall portfolio stability.
This report is an earnings analysis document automatically generated by AI from XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed financial statements. Investment decisions are your own responsibility; consult a professional advisor as necessary before making any investment decisions.