| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1166.0B | ¥1117.4B | +4.3% |
| Operating Income / Operating Profit | ¥154.6B | ¥137.3B | +12.5% |
| Ordinary Income | ¥150.4B | ¥137.4B | +9.5% |
| Net Income / Net Profit | ¥95.4B | ¥95.7B | -0.3% |
| ROE | 9.3% | 9.8% | - |
For the fiscal year ended March 2026, Revenue was ¥1,165.96B (YoY +¥48.53B, +4.3%), Operating Income was ¥154.56B (YoY +¥17.23B, +12.5%), Ordinary Income was ¥150.45B (YoY +¥13.01B, +9.5%), and Net Income was ¥95.41B (YoY -¥0.25B, -0.3%). The core Ambulance business drove growth with Revenue of ¥719.06B (+7.9%) and Operating Income of ¥81.67B (+19.5%), while the Disaster Prevention business, despite Revenue decline (-6.7%), maintained high profitability with an Operating Margin of 20.4%. Operating margin improved to 13.3% (YoY +1.0pt) reflecting price revisions and improved product mix; however, an expanded equity-method loss of ¥10.76B (prior year ¥5.81B) and a higher effective tax rate of 35.5% pressured Net Income, offsetting operating-level gains at the Ordinary and Net Income levels. Operating Cash Flow (OCF) declined sharply to ¥47.87B (YoY -58.0%), driven mainly by inventory increase of ¥35.72B (notably Work in Progress +¥17.30B), Accounts Receivable increase of ¥21.48B, and Accounts Payable decrease of ¥39.11B, highlighting weak working capital management.
【Revenue】 Revenue of ¥1,165.96B (+4.3%) was led by the Ambulance business (Ambulance) at ¥716.89B (61.5% of total, +7.9% YoY) and strong growth in Environmental Automobile at ¥134.69B (+8.0%). The Disaster Prevention segment (Disaster Prevention) declined to ¥249.59B (-6.7%) due to selective project execution but shifted to a higher-margin product mix. Industrial Machinery (Industrial Machinery) grew slightly to ¥64.76B (+1.6%). On an external sales basis after intersegment eliminations, growth in Ambulance and Environmental Automobile drove consolidated Revenue; backlog accumulation (Work in Progress ¥140.43B, prior year ¥127.13B) provides support for future shipments.
【Profitability】 Operating Income of ¥154.56B (+12.5%) was mainly due to expansion in Gross Margin to 29.1% (prior year 27.3%, +1.8pt), with Cost of Goods Sold ratio falling to 70.9%. SG&A expenses increased to ¥185.02B (SG&A ratio 15.9%) from prior year ¥167.34B, but operating leverage from Revenue growth led to an improved Operating Margin of 13.3% (prior year 12.3%, +1.0pt). By segment, Ambulance Operating Income of ¥81.67B (margin 11.4%, prior year 10.3%) and Disaster Prevention ¥51.48B (margin 20.4%, prior year 19.9%) led profitability improvement. Ordinary Income of ¥150.45B (+9.5%) benefited from Non-operating Income of ¥11.47B (dividend income ¥3.58B, FX gains ¥2.96B, etc.), while an equity-method loss of ¥10.76B (prior year ¥5.81B) partially offset operating gains. Extraordinary items included securities disposal gains of ¥3.52B but were offset by securities valuation losses ¥1.99B and fixed asset retirement losses ¥0.98B, resulting in minimal net impact. Pre-tax income was ¥148.03B (prior year ¥140.67B), and income taxes of ¥52.62B (effective tax rate 35.5%, prior year 32.0%) increased, compressing Net Income to ¥95.41B (-0.3%). Comprehensive Income was ¥118.67B (prior year ¥101.70B), supplemented by foreign currency translation adjustments ¥11.09B, valuation differences on securities ¥7.58B, and retirement benefit adjustments ¥4.63B. In summary, while Revenue and Operating Income increased, growth below Ordinary Income and Net Income was limited by tax burden and equity-method losses.
The Ambulance business (Ambulance) reported Revenue ¥719.06B (+7.9%), Operating Income ¥81.67B (+19.5%), and Operating Margin 11.4% (prior year 10.3%, +1.1pt), supported by strong orders and effective price pass-through. Disaster Prevention (Disaster Prevention) had Revenue ¥252.87B (-6.7%) but Operating Income ¥51.48B (+2.7%) and Operating Margin 20.4% (prior year 19.9%) through concentration on high-margin projects. Industrial Machinery (Industrial Machinery) posted Revenue ¥64.86B (+1.6%), Operating Income ¥8.96B (+4.9%), margin 13.8%, remaining stable. Environmental Automobile (Environmental Automobile) achieved Revenue ¥136.84B (+8.0%), Operating Income ¥12.54B (+22.1%), margin 9.2% (prior year 8.1%), combining growth and improving profitability. The Ambulance core accounts for a majority of sales and profits, Disaster Prevention delivers the highest margins, and Environmental Automobile is emerging as a growth driver.
【Profitability】Operating Margin 13.3% (prior year 12.3%, +1.0pt), Gross Margin 29.1% (prior year 27.3%, +1.8pt), Net Profit Margin 8.2% (prior year 8.6%, -0.4pt). ROE 9.3% (prior year 10.1%) declined due to stable Net Income and increased Net Assets, while ROA (based on Ordinary Income) improved to 10.4% (prior year 9.7%), indicating stronger operating earning power. EBITDA was approximately ¥179.02B (Operating Income ¥154.56B + Depreciation ¥24.46B), with an EBITDA margin of 15.4%; goodwill amortization of ¥5.91B had a minor impact. 【Cash Quality】OCF/Net Income ratio was low at 0.50x, with OCF ¥47.87B versus Net Income ¥95.41B. The accrual ratio was 3.2% (=(Net Income - OCF)/Total Assets), within a healthy range, but weak cash conversion is evident. Free Cash Flow was ¥33.80B (OCF - CapEx ¥10.66B), covering dividends of ¥26.52B but far short of total shareholder returns including buybacks of ¥46.63B (total return ¥73.15B). 【Investment Efficiency】CapEx ¥10.66B / Depreciation ¥24.46B = 0.44x, indicating maintenance-level investment; growth investment was restrained. R&D expense ¥26.17B (2.2% of Revenue) is modest for a manufacturer. 【Financial Soundness】Equity Ratio 70.2% (prior year 67.3%), Current Ratio 268.4%, Quick Ratio 255.1% — extremely healthy. Interest-bearing debt ¥9.08B vs. cash and deposits ¥265.44B results in a net cash position; Debt/EBITDA 0.05x and Interest Coverage 322x indicate substantial financial flexibility. CCC (Cash Conversion Cycle) was 166 days (DSO 95 days + DIO 128 days - DPO 57 days), deteriorated from prior year due to inventory buildup and extended collections.
OCF was ¥47.87B (prior year ¥113.91B, -58.0%), representing a low cash conversion rate of 32% relative to Pre-tax Income of ¥148.03B. Operating cash subtotal (before working capital changes) was ¥99.79B; after deducting inventory increases ¥35.72B, Accounts Receivable increases ¥21.48B, and Accounts Payable decreases ¥39.11B, and paying corporate taxes ¥55.67B (prior year ¥37.69B), OCF was significantly compressed. Inventory increases included Work in Progress rising to ¥140.43B (prior year ¥127.13B), suggesting longer lead times from order to shipment. Investing Cash Flow was -¥14.07B, consisting of CapEx ¥10.66B and intangible investments ¥4.13B, partially offset by proceeds from sale of securities ¥4.85B. Free Cash Flow remained positive at ¥33.80B, but Financing Cash Flow paid dividends ¥26.47B and repurchased shares ¥46.59B (total approx. ¥73B), reducing cash by ¥34.55B. Cash and deposits stood at ¥265.44B (prior year ¥298.92B), still ample, but continued total returns without working capital normalization could erode cash over the medium term. With Depreciation ¥24.46B and CapEx ¥10.66B, investment remains restrained, prioritizing shareholder returns over growth investment.
Operating Income ¥154.56B is largely derived from core operations and is highly recurring. Major items of Non-operating Income ¥11.47B were dividend income ¥3.58B and FX gains ¥2.96B; FX is market-dependent while dividend income is a stable return from securities holdings of ¥152.34B. Non-operating expenses ¥15.58B include an equity-method loss of ¥10.76B, largely a temporary factor due to underperformance at investees. Extraordinary items netted minimal impact (securities disposal gains ¥3.52B offset by valuation losses ¥1.99B and fixed asset retirement losses ¥0.98B), indicating Ordinary Income reflects underlying performance. Comprehensive Income ¥118.67B exceeded Net Income ¥95.41B, with Other Comprehensive Income contributing ¥23.26B (foreign currency translation adjustments ¥11.09B, valuation differences on securities ¥7.58B, retirement benefit adjustments ¥4.63B), reflecting B/S unrealized gains. The accrual ratio of 3.2% is within an appropriate range, but the low OCF/Net Income ratio of 0.50x stems from inventory and AR accumulation; normalization of shipments and collections should improve quality. Excluding the equity-method loss, Ordinary Income-based profitability is solid, and an adjusted underlying Net Profit Margin is estimated at around 9%.
Full Year guidance had been Revenue ¥1,155.0B (actual ¥1,165.96B, +¥10.96B beat), Operating Income ¥145.0B (actual ¥154.56B, +¥9.56B beat), Ordinary Income ¥150.0B (actual ¥150.45B, +¥0.45B achieved), and Net Income ¥97.0B (actual ¥95.41B, -¥1.59B short). Revenue and Operating Income exceeded guidance as price measures and cost efficiencies outperformed expectations. Ordinary Income was essentially in line, with expanded equity-method losses covered by Non-operating Income. Net Income missed slightly due to higher-than-expected effective tax rate (about 3.5pt higher than forecast at 35.5%) and equity-method losses. EPS forecast 237.19 yen vs. actual 224.71 yen, impacted by higher tax burden and investee profit declines. Dividend guidance of ¥32.0 (interim ¥29 + year-end forecast ¥3) was greatly exceeded by actual interim ¥29 + year-end ¥35 = ¥64, representing a substantial increase and stronger shareholder return stance. Progress vs. full-year guidance (actual / guidance) was Revenue 101.0%, Operating Income 106.6%, Ordinary Income 100.3%, Net Income 98.4% — operating outperformance was clear but higher tax burden prevented Net Income from reaching guidance. Upside vs. forecast centered on price pass-through and product mix; downside concentrated on tax rate and equity-method results.
Annual dividend was ¥64 (interim ¥29 + year-end ¥35, versus prior year ¥25, +¥39 increase), with payout ratio 30.7% (based on EPS 224.71 yen). Total dividends were approximately ¥26.52B, which is 0.78x of Free Cash Flow ¥33.80B and coverable. Share buybacks executed totaled ¥46.63B, increasing treasury stock to -¥76.78B and resulting in treasury stock ratio of 9.8% of outstanding shares. Combined dividends and buybacks amounted to approx. ¥73.15B, representing a Total Return Ratio of approx. 76.7% relative to Net Income ¥95.41B — an aggressive level. Dividend-only payout ratio is about 30.7%, but combined returns return over 70% of earnings to shareholders. Total returns of ¥73.15B are 2.16x Free Cash Flow ¥33.80B; the company used its ample cash position (cash and deposits ¥265.44B) to fund returns this year. If OCF recovers with working capital normalization, FCF should cover total returns going forward; however, absent inventory and AR compression, a reassessment of return levels may be required. Both payout ratio and Total Return Ratio are somewhat higher than historical levels, showing a clear emphasis on shareholder returns.
Deterioration in working capital efficiency: Inventory (particularly Work in Progress ¥140.43B) and Accounts Receivable ¥303.01B accumulation worsened CCC to 166 days and OCF/Net Income to 0.50x. Continued long lead times from order to shipment and collection delays would further weaken cash generation and jeopardize sustainability of total returns. Risks also include inventory valuation losses and loss of customer trust due to delivery delays.
Concentration risk in core segment: The Ambulance business (Ambulance) accounts for 61.5% of Revenue and more than half of Operating Income. Changes in public procurement, cuts to firefighting budgets, intensified competition, or regulatory changes could markedly affect consolidated results. Disaster Prevention’s high margins (20.4%) depend on project selection; exhaustion of high-margin projects could sharply reduce profitability.
Expansion of equity-method losses and higher tax burden: Equity-method losses expanded to ¥10.76B (prior year ¥5.81B), pressuring Ordinary and Net Income. If investee performance does not recover, continued equity-method losses will impede Net Profit margin recovery. In addition, an effective tax rate of 35.5% (prior year 32.0%) suppresses Net Income; further tax increases or reversals of deferred tax assets could reduce shareholder return resources.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 13.3% | 7.8% (4.6%–12.3%) | +5.5pt |
| Net Profit Margin | 8.2% | 5.2% (2.3%–8.2%) | +3.0pt |
Both Operating Margin and Net Profit Margin significantly exceed the manufacturing median, placing the company among the top performers in the sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 4.3% | 3.7% (-0.4%–9.3%) | +0.6pt |
Revenue growth outperforms the median and is on a stable growth trajectory, though there is a sizable gap to top performers (+9.3%+).
※Source: Company compilation
Steady profitability improvement from price pass-through and product mix: Operating Margin 13.3% (prior year 12.3%, +1.0pt), Gross Margin 29.1% (prior year 27.3%, +1.8pt) indicate that pricing strategy and improved segment mix lifted profitability. Disaster Prevention’s Operating Margin 20.4% and Ambulance margin improvement (11.4%, +1.1pt) drove group margins well above the manufacturing median (Operating Margin 7.8%), establishing a high-profit structure. Maintaining this profitability going forward is a key focus.
Improving working capital efficiency and cash generation is the top priority: OCF ¥47.87B (YoY -58.0%), OCF/Net Income 0.50x, CCC 166 days indicate notable inventory increases (Work in Progress +¥17.30B) and collection delays. Total returns ¥73.15B far exceeded Free Cash Flow ¥33.80B and were absorbed by cash on hand ¥265.44B; continuing total returns without working capital normalization is unsustainable. Accelerating shipment of WIP and AR collection are critical.
Need to rebalance concentration in core segment and growth investment: Ambulance (Ambulance) represents 61.5% of Revenue and over half of Operating Income, complemented by high-margin Disaster Prevention (20.4%). However, CapEx/Depreciation 0.44x and R&D ratio 2.2% show restrained investment; medium-term competitiveness requires accelerated growth investment. Nurturing high-growth Environmental Automobile (+8.0%, margin +1.1pt improvement) to diversify the portfolio is key to mitigating concentration risk and sustaining growth.
This report was automatically generated by AI analyzing XBRL financial statement data for the earnings release. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.