| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥1406.2B | ¥1269.5B | +10.8% |
| Operating Income | ¥162.5B | ¥131.8B | +23.3% |
| Ordinary Income | ¥182.9B | ¥141.6B | +29.2% |
| Net Income | ¥131.0B | ¥77.8B | +68.3% |
| ROE | 14.6% | 10.7% | - |
FY2026 delivered Revenue of ¥1406.2B (YoY +¥136.6B +10.8%), Operating Income of ¥162.5B (YoY +¥30.6B +23.3%), Ordinary Income of ¥182.9B (YoY +¥41.3B +29.2%), and Net Income attributable to owners of the parent of ¥131.0B (YoY +¥53.2B +68.3%), achieving substantial profit growth on double-digit revenue expansion. The core Marine Business performed strongly with Revenue of ¥1213.2B (+11.4%), Operating Income of ¥167.6B (+25.7%) and a margin of 13.8%, which was the main driver of results. SG&A ratio improved to 29.9% (from 31.3% a year earlier, ~1.4pt improvement), driving Operating Margin up to 11.6% (from 10.4% a year earlier, ~1.2pt improvement). Non-operating income of ¥2.41B (including foreign exchange gains of ¥0.62B and interest income ¥0.29B — note figures reported in the narrative are in B) contributed to Ordinary Income, lifting the Ordinary Income margin to 13.0% (from 11.2% a year earlier, ~1.8pt improvement). A low effective tax rate of 8.6% also supported Net Income growth, improving Net Margin to 9.3% (from 6.1% a year earlier, ~3.2pt expansion).
【Revenue】Revenue of ¥1406.2B (+10.8%) was mainly driven by double-digit growth in the core Marine Business (+11.4%). By region, the Americas were ¥155.4B (+28.9%), Asia ¥370.9B (+13.8%), Europe ¥400.9B (+8.5%), showing expansion in overseas markets, while domestic Revenue was ¥405.5B (+7.6%) and remained solid. The Industrial Business recovered to Revenue of ¥159.0B (+11.5%), whereas the Wireless LAN & Handheld Terminal Business declined to ¥38.2B (-3.9%).
【Profitability】Cost of sales rose to ¥822.8B (+11.2%), outpacing Revenue growth, and Gross Margin slightly weakened to 41.5% (from 41.7% a year earlier, ~0.2pt decline). However, SG&A of ¥420.9B (+5.8%) was restrained well below the Revenue growth rate, improving the SG&A ratio to 29.9% (from 31.3% a year earlier, ~1.4pt improvement). As a result, Operating Income rose to ¥162.5B (+23.3%), and the Operating Margin improved to 11.6% (from 10.4% a year earlier, ~1.2pt expansion), achieving operating leverage beyond the revenue increase.
In non-operating results, non-operating income totaled ¥24.1B (interest income ¥2.9B, dividend income ¥1.7B, foreign exchange gains ¥6.2B, subsidy income ¥0.7B, etc.) which substantially exceeded non-operating expenses of ¥3.7B, improving Ordinary Income to ¥182.9B (+29.2%) and the Ordinary Income margin to 13.0% (from 11.2% a year earlier, ~1.8pt expansion). Extraordinary items were a net +¥0.7B (extraordinary gains ¥1.4B − extraordinary losses ¥0.7B), resulting in Profit Before Tax of ¥183.6B (+28.3%). After income taxes of ¥15.9B (effective tax rate 8.6%) and non-controlling interests of ¥0.4B, Net Income attributable to owners of the parent was ¥131.0B (+68.3%).
In conclusion, strong performance in the Marine Business, SG&A efficiency gains yielding operating leverage, and contributions from non-operating income resulted in both revenue and profit growth.
The Marine Business remained robust as the core segment with Revenue of ¥1213.2B (+11.4%), Operating Income of ¥167.6B (+25.7%), and a margin of 13.8% (from 13.3% a year earlier, +0.5pt). It accounted for 85.4% of Revenue and the majority contribution to Operating Income, driving performance through both scale effects and high profitability. The Industrial Business showed recovery with Revenue of ¥159.0B (+11.5%), Operating Income of ¥7.8B (+57.7%), and a margin of 4.9% (from 3.1% a year earlier, +1.8pt). Although margin remains low, the pace of improvement is notable. The Wireless LAN & Handheld Terminal Business declined with Revenue of ¥38.2B (-3.9%), Operating Income of ¥1.3B (-33.0%), and a margin of 3.5% (from 5.3% a year earlier, -1.8pt), and is in a phase of selection and contraction. Other Businesses recorded Revenue of ¥9.8B (-1.7%) and an operating loss of -¥1.1B. Across segments, Marine’s dominant share and high margins form the core of profit structure, Industrial is being developed as the second pillar, and restructuring or exit decisions for Wireless/Other will be a focus going forward.
【Profitability】Operating Margin 11.6% (from 10.4% a year earlier, +1.2pt), Ordinary Income Margin 13.0% (from 11.2% a year earlier, +1.8pt), Net Margin 9.3% (from 6.1% a year earlier, +3.2pt) — margins improved at all stages. ROE 18.6% (from 17.2% a year earlier, +1.4pt; note: single-year comparison due to limited 3-year data) indicates high capital efficiency. DuPont decomposition of ROE is Net Margin 9.3% × Total Asset Turnover 1.00x × Financial Leverage 1.57x, with the substantial improvement in Net Margin the largest contributor. ROA 13.8% (from 11.9% a year earlier, +1.9pt) also improved.
【Cash Quality】Operating Cash Flow (OCF) was ¥213.7B, 1.63x Net Income of ¥131.0B, indicating high cash backing. Free Cash Flow (FCF) was ¥180.9B (OCF − Investing CF ¥32.8B), showing ample internal cash generation. The OCF/EBITDA ratio was 1.06x (EBITDA ¥201.7B = Operating Income ¥162.5B + Depreciation ¥39.2B), a healthy level.
【Investment Efficiency】Total Asset Turnover was 1.00x (slight decline from 1.03x), Inventory Turnover Days 148 days (from 133 days, +15 days), Trade Receivables Turnover Days 73 days (from 82 days, -9 days), Accounts Payable Turnover Days 34 days (from 33 days, +1 day), resulting in a Cash Conversion Cycle (CCC) of 187 days (from 182 days, +5 days), showing lengthening. Capex/Depreciation ratio was 0.61x, indicating mainly maintenance-level investment and reserved capacity for growth investment.
【Financial Soundness】Equity Ratio was 63.5% (from 58.8% a year earlier, +4.7pt), Current Ratio 299% (from 257%, +42pt), and D/E ratio 0.57x, reflecting a conservative financial structure. Net Debt/EBITDA was -0.69x (cash and deposits ¥242.8B − interest-bearing debt ¥139.3B), indicating a net cash position. Interest coverage was 69x (Operating Income ¥162.5B / Interest Expense ¥2.4B), showing minimal interest burden.
OCF was ¥213.7B (from ¥108.2B a year earlier, +97.5%), a large increase and 1.63x Net Income of ¥131.0B, indicating strong cash backing. OCF subtotal (before working capital changes) was ¥233.9B; working capital changes that boosted cash included a decrease in trade receivables of ¥7.9B, a decrease in inventories of ¥3.2B, and an increase in contract liabilities of ¥8.7B, while a decrease in accounts payable of -¥3.6B offset some of this. After corporate tax payments of -¥27.9B, OCF totaled ¥213.7B. Investing CF was -¥32.8B, comprising capital expenditures of -¥23.8B and intangible asset investments of -¥24.8B, partly offset by net increase in time deposits of +¥11.6B, indicating restrained investment activity. FCF was ¥180.9B (OCF ¥213.7B − Investing CF ¥32.8B), sufficient to cover financing CF of -¥114.4B including dividend payments of -¥47.4B, long-term loan repayments of -¥30.1B, and short-term loan repayments of -¥59.0B. Including foreign currency translation adjustments of +¥14.7B, cash and deposits increased from ¥161.1B at the beginning of the period to ¥242.8B at the end of the period (+¥81.7B), further strengthening financial stability. Although the CCC lengthened to 187 days, inventory and receivable management during the period strengthened OCF, and improvements in working capital efficiency present further cash generation potential.
Earnings quality is high. Operating Income of ¥162.5B is the core of profits, and non-operating income of ¥24.1B (1.7% of Revenue) composed of interest income ¥2.9B, dividend income ¥1.7B, foreign exchange gains ¥6.2B, equity-method gains ¥2.7B, subsidy income ¥0.7B, etc., are diverse but small relative to Revenue and within recurring ranges. Extraordinary items were net +¥0.7B (extraordinary gains ¥1.4B − extraordinary losses ¥0.7B), minor and accounting for less than 1% of Net Income ¥131.0B. The divergence between Operating Income and Ordinary Income is due to non-operating income; guidance for the next fiscal year assumes Ordinary Income ¥170B (-7.1%), reflecting normalization of one-off items like foreign exchange gains. From an accrual perspective, OCF is 1.63x Net Income, and the accrual difference OCF ¥213.7B − Net Income ¥131.0B = +¥82.7B reflects efficient working capital management and non-cash depreciation of ¥39.2B, indicating good earnings quality. Total Comprehensive Income of ¥218.9B versus Net Income of ¥131.0B yields a difference of ¥87.9B, attributable to other comprehensive income such as foreign currency translation adjustments +¥29.7B, unrealized gains on securities +¥14.9B, and actuarial gains on retirement benefits +¥5.8B; these valuation gains are recorded but are accounting items independent of Net Income and do not affect recurring profitability.
Guidance for FY2027: Revenue ¥1485.0B (vs prior year +5.6%), Operating Income ¥170.0B (vs prior year +4.6%), Ordinary Income ¥170.0B (vs prior year -7.1%), Net Income attributable to owners of the parent ¥130.0B (vs prior year -0.8%), EPS ¥411.28, and annual dividend ¥80. Revenue is projected to grow single-digit, Operating Income is expected to increase though at a slower pace, while Ordinary Income is forecast to decline -7.1% reflecting normalization of FX gains and non-operating income that contributed this year. EPS is expected to fall from ¥529.53 to ¥411.28 (-22.3%), suggesting normalization of Net Margin. Payout Ratio is forecast to decline to 19.4% (¥80 / ¥411.28), indicating a shift toward prioritizing internal reserves in capital allocation. The guidance assumes continued SG&A control and some scale benefits, but does not expect a large improvement in Gross Margin, implying a conservative profit outlook. Progress against this year’s results stands at 94.7% for Revenue, 95.6% for Operating Income, and 107.6% for Ordinary Income — operationally generally on track, with the Ordinary Income picture reflecting the expected reduction in non-operating income.
Annual dividend was ¥160 (interim ¥75, year-end ¥85), representing a Payout Ratio of 30.2% (¥160 / ¥529.53). Total dividends amounted to ¥47.4B, and with FCF of ¥180.9B the dividend coverage ratio is 3.8x, indicating high sustainability. Share buybacks were minimal at -¥0.02B, so dividends are the primary shareholder return. Consequently, the Total Return Ratio is approximately 30%, effectively equivalent to the Payout Ratio. Next fiscal year’s dividend plan is ¥80 (−50% YoY), but with projected EPS ¥411.28 the Payout Ratio would be 19.4%, indicating prioritization of retained earnings for growth investment and working capital optimization. Cash and deposits of ¥242.8B and an Equity Ratio of 63.5% provide ample financial capacity, enabling both dividend sustainability and agile capital policy. The policy of returning capital primarily via dividends while maintaining ROE of 18.6% balances profit-linked returns and financial soundness.
Segment concentration risk: The Marine Business accounts for 85.4% of Revenue and the bulk of Operating Income, so shipping market cyclicality, tighter environmental regulations, and intensified competition could materially affect overall results. Geographic diversification is progressing but room for portfolio diversification is limited.
Working capital efficiency risk: Inventory Turnover Days of 148 days (+15 days YoY) and CCC of 187 days (+5 days YoY) show a lengthening trend, and inventory accumulation or delays in receivable collection could strain liquidity. Inventory of ¥286.0B (20.3% of Revenue) poses risks of obsolescence or discount pressure that could depress Gross Margin.
Foreign exchange risk: With rising sales ratio in the Americas and Asia (combined 58.0%), the expansion of foreign-currency transactions increases FX exposure to Operating Income. This fiscal year, foreign exchange gains of ¥6.2B boosted Ordinary Income, but normalization is expected next year and yen appreciation could reduce profits.
【Industry Position】(reference — compiled by the firm) Within the manufacturing sector, the Operating Margin of 11.6% exceeds the industry median of 7.8% by +3.8pt and is close to the upper quartile (12.3%), indicating high-level performance. Net Margin 9.3% exceeds the industry median of 5.2% by +4.1pt, showing superior profitability. ROE 18.6% is well above the industry median of 6.3%, placing capital efficiency among the top in the industry. Total Asset Turnover 1.00x exceeds the industry median of 0.76x, but Inventory Turnover Days of 148 days far exceed the industry median of 68 days, indicating below-average inventory efficiency. CCC of 187 days also exceeds the industry median of 85 days, suggesting room for working capital improvement. Capex/Depreciation ratio 0.61x is well below the industry median of 1.08x, indicating a conservative investment stance. Equity Ratio 63.5% slightly exceeds the industry median of 60.9%, and Current Ratio 299% exceeds the industry median of 266%, reflecting solid financial health. Net Debt/EBITDA of -0.69x indicates a net cash position, better than the industry median of -0.59x, providing financial flexibility. Overall, the company ranks high in profitability, capital efficiency, and financial soundness, but lags industry averages in working capital efficiency and investment aggressiveness; operational improvements and growth investment are future priorities.
Key points in the financial results are: (1) the maintenance of high profitability in the core Marine Business and SG&A efficiency, yielding Operating Margin 11.6% and ROE 18.6%, among the industry’s top levels for profitability and capital efficiency; (2) strong cash generation with OCF ¥213.7B and FCF ¥180.9B, enabling the company to maintain a roughly 30% Payout Ratio while increasing cash and deposits to ¥242.8B and further improving financial strength; (3) the next fiscal year’s guidance foresees Ordinary Income -7.1% and EPS -22.3%, incorporating normalization of this year’s one-off FX and non-operating gains, indicating a phase of profit normalization; (4) lengthening trends in Inventory Turnover Days (148 days) and CCC (187 days) highlight the need to improve inventory and receivables management to boost mid-term ROIC and expand FCF; and (5) while Capex/Depreciation is 0.61x, indicating restrained investment, solid order backlog and contract liabilities in the Marine Business suggest room to reaccelerate growth investment and the need for equipment modernization as future management issues.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by our firm from public financial statements. Investment decisions should be made at your own responsibility, and, where necessary, after consulting a professional advisor.