| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥216.2B | ¥188.2B | +14.9% |
| Operating Income / Operating Profit | ¥17.8B | ¥12.8B | +38.8% |
| Ordinary Income | ¥21.9B | ¥10.9B | +100.8% |
| Net Income / Net Profit | ¥19.6B | ¥9.4B | +107.3% |
| ROE | 2.1% | 1.0% | - |
FY2026 Q1 results showed clear top- and bottom-line growth: Revenue ¥216.2B (YoY +¥28.1B +14.9%), Operating Income ¥17.8B (YoY +¥5.0B +38.8%), Ordinary Income ¥21.9B (YoY +¥11.0B +100.8%), Net Income ¥19.6B (YoY +¥10.1B +107.3%). Revenue was driven by the Machine Tools (working machines) Business with +22.6% growth. Gross margin improved to 36.7% (from 35.1% a year ago, +1.6pt) and operating margin improved to 8.2% (from 6.8% a year ago, +1.4pt). The doubling of Ordinary Income and Net Income reflects operating profit growth plus a one-off contribution of Special Gains ¥3.99B (mainly gain on sale of fixed assets) and recorded foreign exchange gains of ¥2.2B, reversing last year’s foreign exchange losses of ¥4.5B and substantially improving non-operating income/expense. ROE was 2.1%; although still low, the improvement is driven by a significant increase in net profit margin year-on-year.
【Revenue】 Revenue ¥216.2B (+14.9%) was driven by the core Machine Tools Business at ¥167.0B (+22.6%), achieving double-digit growth. Industrial Machinery was ¥24.1B (+1.7%) with modest growth, Food Machinery was ¥13.3B (-13.2%) with a decline, and Other was ¥15.0B (-2.4%) with a slight decrease. The Machine Tools segment accounted for 76.1% of total sales, and expansion in that business drove company-wide top-line growth. Contract liabilities (advance receipts) rose to ¥79.9B, +37.3%, indicating backlog accumulation and improved short-term revenue visibility. Regional and customer-level details are not disclosed, but the Machine Tools expansion is presumed to reflect a recovery in capital expenditure demand among global manufacturers.
【Profitability】 Cost of sales was ¥136.8B, yielding Gross Profit ¥79.4B and a gross margin of 36.7% (up from 35.1% a year ago, +1.6pt), with price maintenance and improved product mix contributing to profitability. SG&A was ¥61.6B (28.5% of sales), up ¥8.4B YoY, but the ratio to sales was roughly flat, allowing operating leverage to drive Operating Income to ¥17.8B (operating margin 8.2%, up from 6.8% a year ago, +1.4pt). Non-operating items included Interest Income ¥0.9B, Equity-method gains ¥1.1B, Foreign exchange gains ¥2.2B, etc., totaling non-operating income ¥5.6B, while non-operating expenses including Interest Expense ¥1.1B were ¥1.5B, resulting in net non-operating income contribution of +¥4.1B and lifting Ordinary Income to ¥21.9B (ordinary income margin 10.1%, up from 5.8% a year ago, +4.3pt). Last year included foreign exchange losses of ¥4.5B; improvement in FX contributed significantly to non-operating results. Extraordinary items were Special Gains ¥3.99B (centered on gain on sale of fixed assets ¥3.76B) and Special Losses ¥0.21B, netting +¥3.78B and contributing to Pre-tax Income ¥25.7B. After deducting Income Taxes ¥6.1B, Net Income was ¥19.6B (net margin 9.1%, up from 5.0% a year ago, +4.1pt). While including one-off items, this represents a substantial YoY increase of +107.3%. In summary, revenue growth in Machine Tools and improved gross margin drove operating profit growth, while FX improvement and special gains pushed ordinary and net profit higher.
The Machine Tools Business (Revenue ¥167.0B, +22.6% / Operating Income ¥23.0B, +46.7%, margin 13.8%) led company-wide profit growth. Margin improved from 9.6% a year ago by +4.2pt as revenue growth and profitability improvement were realized. Industrial Machinery (Revenue ¥24.1B, +1.7% / Operating Income ¥0.8B, +20.0%, margin 3.2%) posted modest revenue growth with margin improving from 2.7% a year ago by +0.5pt, showing stability. Food Machinery (Revenue ¥13.3B, -13.2% / Operating Income ¥2.1B, -34.4%, margin 15.5%) recorded revenue and profit declines, but margin at 15.5% (down from 20.4% a year ago, -4.9pt) remains high and continues to contribute to earnings. Other Businesses (Revenue ¥15.0B, -2.4% / Operating Income ¥0.2B, -55.3%, margin 1.1%), including precision molds and molding businesses, saw margin decline from 2.4% a year ago by -1.3pt, and profitability is limited. Segment concentration is high with Machine Tools representing 76.1% of sales, making company performance dependent on that business’s trends.
【Profitability】Operating margin 8.2% (up from 6.8% a year ago, +1.4pt), Net margin 9.1% (up from 5.0% a year ago, +4.1pt); gross margin improvement and operating leverage were effective. ROE was 2.1%; although low, the year-on-year improvement is mainly due to higher net margin. Machine Tools segment margin 13.8% (up from 9.6% a year ago, +4.2pt) drove company-wide margin improvement. 【Cash Quality】Cash and deposits ¥487.2B and marketable securities ¥40.0B give total cash and equivalents ¥527.2B, indicating very strong liquidity. Contract liabilities ¥79.9B accumulation reflects increased advance receipts and improves short-term cash flow visibility. 【Investment Efficiency】Total asset turnover was 0.137x (annualized approx. 0.55x) showing improvement trend but remains low. Inventories ¥136.8B (Finished goods ¥13.7B, Work-in-progress ¥107.0B, Raw materials ¥102.5B) are high at 63.3% of sales, indicating room to improve turnover. 【Financial Health】Equity Ratio 58.5% (up from 58.1% a year ago, +0.4pt), Interest-bearing liabilities ¥212.2B (Short-term borrowings ¥59.8B, Long-term borrowings ¥152.5B, Bonds ¥91.7B) against cash and equivalents ¥527.2B yields a net cash position of +¥315.0B, showing very sound financials. Current ratio 282%, Interest Coverage 16.6x, indicating strong short-term payment capacity and interest resilience.
Reported Net Income ¥19.6B includes a one-off Special Gain ¥3.99B, and underlying profit generation is assessed at approximately ¥15.6B. Cash and deposits ¥487.2B increased by +¥36.6B from ¥450.6B a year ago, improving liquidity. Contract liabilities ¥79.9B (from ¥58.2B a year ago, +¥21.7B) indicate buildup of advance receipts, supporting short-term cash generation. However, Inventories at ¥136.8B are high at 63.3% of sales, leaving significant room for inventory reduction. Accounts receivable and notes receivable ¥172.6B are 79.8% of sales, and improving collection cycles is a challenge. Short-term borrowings increased ¥19.7B to ¥59.8B, suggesting higher working capital needs. Overall, ample cash balances and rising contract liabilities support cash position, while inventory and receivables reduction will be key to improving cash conversion.
Operating Income ¥17.8B forms the core recurring earnings. Of Non-operating Income ¥5.6B, Foreign exchange gains ¥2.2B, Interest income ¥0.9B, and Equity-method gains ¥1.1B were components, representing 2.6% of sales, which is an acceptable level. Special Gains ¥3.99B (mainly gain on sale of fixed assets ¥3.76B) account for about 20.4% of Net Income ¥19.6B and have low sustainability going forward. Last year recorded foreign exchange losses ¥4.5B; this period reversed to FX gains ¥2.2B, showing FX volatility materially affects non-operating items. Non-operating expenses ¥1.5B include Interest expense ¥1.1B, but Interest Coverage of 16.6x indicates interest burden is modest. The gap between Ordinary Income ¥21.9B and Net Income ¥19.6B is due to tax effects and extraordinary items; the effective tax rate is 23.8%, a standard level. Comprehensive Income ¥30.3B exceeds Net Income ¥19.6B by +¥10.7B, with Foreign currency translation adjustments ¥9.1B and valuation difference on available-for-sale securities ¥1.5B recorded in Other Comprehensive Income, indicating strong comprehensive profitability. Overall, Operating Income reflects recurring earnings capacity, but about 20% of Net Income was driven by special gains; sustainable earnings should be evaluated based on Operating Income.
Full Year / FY forecast is unchanged: Revenue ¥885.0B (+9.8%), Operating Income ¥55.0B (+30.2%), Ordinary Income ¥60.0B (+14.7%), Net Income ¥51.0B, EPS ¥100.70. Q1 progress rates versus the full year plan were: Revenue 24.4% (standard pacing 25%: -0.6pt), Operating Income 32.3% (standard: +7.3pt), Ordinary Income 36.5% (standard: +11.5pt), Net Income 38.4% (standard: +13.4pt), indicating profits are front-loaded. The excess progress in Ordinary and Net Income is likely due to the one-off Special Gain ¥3.99B and recorded FX gains. No revisions to full-year guidance were made; the company remains cautious, though continued gross margin improvement and Machine Tools strength could lead to upside in Operating Income. Conversely, the disappearance of special gains and FX volatility could affect second-half profit levels, so high progress rates do not necessarily imply full-year upside.
The dividend forecast for the year ending December 2026 is unchanged at Annual Dividend ¥20.00, comprised of an Interim Dividend ¥14.00 (ordinary dividend ¥14) and a Year-end Dividend ¥6.00 (breakdown unspecified). Notes on dividend policy state annual dividend of ordinary dividend ¥29.00 plus a 50th anniversary commemorative dividend ¥6.00, totaling ¥35.00, which differs from the published forecast ¥20.00. Assuming the effective annual dividend including the commemorative dividend is ¥35.00, with shares outstanding (after treasury shares) approx. 50.16M shares, total dividends would be about ¥1.76B, and the payout ratio against full-year Net Income forecast ¥51.0B would be approximately 34.5%, a sustainable level. Based on Q1 EPS ¥38.76, an annual dividend ¥35.00 would imply a payout ratio over 90% on a quarterly basis, but this reflects quarterly volatility and should be evaluated on a full-year basis. Cash and deposits ¥487.2B and low leverage (Debt/Capital 18.7%) provide margin of safety for dividends; excluding the commemorative dividend, an ordinary dividend base ¥29.00 implies a payout ratio of about 29%, which is stable. No share buyback has been announced; shareholder returns are assessed based solely on dividends.
Machine Tools Concentration Risk: Heavy dependence on the Machine Tools Business, which accounts for 76.1% of sales, exposes the company to the capital expenditure cycle and economic fluctuations of the global manufacturing sector. The segment has previously shown periods of revenue growth with profit decline, indicating high sensitivity to demand variability. Backlog (contract liabilities ¥79.9B) offers short-term buffer, but long-term demand sustainability depends on macroeconomic conditions.
Foreign Exchange Risk: FX gains/losses in non-operating items are volatile: last year recorded FX losses ¥4.5B, this period recorded FX gains ¥2.2B, a swing of ¥6.7B. This magnitude is roughly 38% of Operating Income ¥17.8B, so FX environment changes can materially affect Ordinary Income and Net Income. Comprehensive Income includes foreign currency translation adjustment ¥9.1B, indicating substantial overseas exposure.
Working Capital Efficiency Risk: Inventories ¥136.8B (63.3% of sales) and Receivables ¥172.6B (79.8% of sales) reflect low working capital turnover and potential lengthening of the cash conversion cycle, which could strain liquidity. Short-term borrowings have increased 49% YoY to ¥59.8B, suggesting increased dependence on borrowings for working capital. In a rising interest rate environment, interest expense burden could increase.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 8.2% | 6.8% (2.9%–9.0%) | +1.4pt |
| Net Margin | 9.1% | 5.9% (3.3%–7.7%) | +3.1pt |
Profitability exceeds the industry median, supported by gross margin improvement and operating leverage.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 14.9% | 13.2% (2.5%–28.5%) | +1.7pt |
Revenue growth modestly exceeds the industry median, driven by recovery in demand for the Machine Tools Business.
※Source: Company compilation
Sustainability of Machine Tools profitability improvement is key: Q1 Machine Tools margin improved to 13.8% (+4.2pt) and led company profit growth. Price maintenance and product mix improvement appear to underlie this trend; if sustained, there is upside to full-year Operating Income. However, the heavy concentration (76.1% of sales) means cyclical demand swings in this segment will continue to drive company performance. Backlog (contract liabilities ¥79.9B) improves short-term revenue visibility, but medium- to long-term demand sustainability depends on macro conditions.
Need to factor in disappearance of special gains and FX volatility: About 20% of Q1 Net Income ¥19.6B was due to Special Gains ¥3.99B (mainly gain on sale of fixed assets), so sustainable profit generation should be assessed at Operating Income ¥17.8B level. FX gains ¥2.2B were a reversal from prior-year FX losses ¥4.5B, underscoring material FX impact on Ordinary Income. Second-half profit levels should be viewed accounting for the likely absence of special gains and possible FX swings.
Financial health and dividend capacity are strong, but working capital efficiency needs improvement: Cash and equivalents ¥527.2B, Net Cash +¥315.0B, Equity Ratio 58.5% underpin strong finances and support sustainability of the commemorative-inclusive annual dividend ¥35.00 (payout ratio ~34.5%). However, Inventories ¥136.8B (63.3% of sales) and Receivables ¥172.6B (79.8% of sales) indicate low working capital efficiency; inventory reduction and faster receivables collection are key to improving cash conversion and reducing borrowing dependence.
This report is an analysis document automatically generated by AI from XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the company based on publicly available financial statements. Investment decisions are your responsibility; please consult professionals as needed.