ShinMaywa Industries,LTD. FY2026 FY Earnings Report

クイックビュー

Executive Summary

For the fiscal year ended March 2026, Revenue was ¥2,850.2B (YoY +¥185.8B +7.0%), Operating Income was ¥163.3B (YoY +¥23.6B +16.9%), Ordinary Income was ¥163.2B (YoY +¥27.9B +20.6%), and Net Income attributable to owners of the parent was ¥115.1B (YoY +¥25.5B +28.5%), resulting in year-on-year increases in both sales and profits. Operating margin improved to 5.7% (up 0.5pt from 5.2% a year earlier), and net margin improved to 4.0% (up 0.7pt from 3.4%), indicating enhanced profitability. By segment, Special Purpose Vehicles contributed the largest profit with Revenue of ¥1,176.1B (+8.7%) and Operating Income of ¥61.7B (+25.9%); Parking Systems achieved Revenue of ¥507.6B (+10.9%) and Operating Income of ¥49.2B (+47.7%) maintaining a high margin of 9.7%; Aircraft grew substantially with Revenue of ¥415.6B (+23.3%) and Operating Income of ¥25.9B (+31.6%). In contrast, Industrial & Environmental Systems declined to Revenue of ¥273.2B (-17.9%) and Operating Income of ¥5.7B (-74.1%), with margin falling to 2.1%. Contract liabilities increased to ¥214.2B (YoY +¥52.5B), confirming a healthy backlog. Operating Cash Flow (OCF) was ¥243.6B (YoY +¥38.7B +18.9%), Free Cash Flow (FCF) was ¥137.9B, and the company paid an annual dividend of ¥56 (payout ratio 38.3%).

業績変動要因

【売上高】Revenue increased to ¥2,850.2B (YoY +7.0%). By segment: Special Purpose Vehicles grew to ¥1,176.1B (+8.7%) supported by solid domestic and overseas demand; Parking Systems rose to ¥507.6B (+10.9%) driven by expanded maintenance and refurbishment demand; Aircraft increased substantially to ¥415.6B (+23.3%) due to higher orders for parts from foreign aircraft manufacturers; Fluid Systems rose to ¥300.1B (+9.0%) on increased water treatment-related demand. Conversely, Industrial & Environmental Systems declined to ¥273.2B (-17.9%) due to weaker demand for automatic wire processing machines and waste treatment equipment. By region, Japan accounted for ¥2,378.6B (83.5% of total), North America was ¥198.3B (+11.5%), and Asia was ¥190.6B (+20.8%), indicating expansion of overseas sales. Contract liabilities increased to ¥214.2B (YoY +32.5%), confirming backlog accumulation.

【損益】Cost of sales was ¥2,356.5B, yielding a cost-of-sales ratio of 82.7% (improved 0.5pt from 83.2% a year earlier), and gross margin was 17.3% (up 0.5pt from 16.8%), indicating improved cost efficiency. SG&A expenses were ¥330.5B (SG&A ratio 11.6%, up 0.1pt from 11.5%), increasing with higher sales but contained at a +7.4% rise, slightly above the sales growth of +7.0%. Operating Income rose to ¥163.3B (+16.9%), and Operating margin improved to 5.7% (up 0.5pt from 5.2%). Non-operating income included interest income ¥1.8B, dividend income ¥3.1B, and foreign exchange gains ¥7.0B, totaling non-operating income of ¥18.4B; non-operating expenses, including interest expense ¥7.4B, totaled ¥18.4B, largely offsetting these items, resulting in Ordinary Income of ¥163.2B (+20.6%). Extraordinary items comprised ¥8.2B of special gains such as gains on sales of investment securities ¥2.6B and gains on sales of fixed assets ¥1.8B, against ¥11.5B of special losses including impairment losses ¥7.6B and valuation losses on investment securities ¥1.3B, producing a net special items figure of -¥3.3B, which was minor. Profit before income taxes was ¥160.0B (+20.6%), income taxes were ¥44.5B (effective tax rate 27.8%), and Net Income attributable to owners of the parent was ¥115.1B (+28.5%).

セグメント別分析

Special Purpose Vehicles: Revenue ¥1,176.1B (+8.7%), Operating Income ¥61.7B (+25.9%), margin 5.2% — became the largest profit-contributing segment due to stable domestic and overseas demand and margin improvement. Parking Systems: Revenue ¥507.6B (+10.9%), Operating Income ¥49.2B (+47.7%), margin 9.7% — maintained high profitability supported by expanded maintenance/refurbishment demand and efficiency gains. Industrial & Environmental Systems: Revenue ¥273.2B (-17.9%), Operating Income ¥5.7B (-74.1%), margin 2.1% — suffered significant profit decline due to reduced demand for automatic wire processing machines and waste treatment equipment and deteriorating project margins. Fluid Systems: Revenue ¥300.1B (+9.0%), Operating Income ¥46.8B (+6.8%), margin 15.6% — maintained the highest margin, aided by a high proportion of high value-added products. Aircraft: Revenue ¥415.6B (+23.3%), Operating Income ¥25.9B (+31.6%), margin 6.2% — benefited from increased orders from foreign aircraft manufacturers and program progress. Other segments: Revenue ¥228.9B (-9.2%), Operating Income ¥15.1B (+3.4%), margin 6.6%.

主要財務指標

【収益性】Operating margin was 5.7% (up 0.5pt from 5.2% a year earlier), ROE was 6.5%, and ROA was 5.8%. Gross margin was 17.3% (up 0.5pt from 16.8%), and SG&A ratio was 11.6% (up 0.1pt from 11.5%), with improved cost efficiency contributing to operating margin expansion. By segment, Fluid Systems posted the highest margin at 15.6%, followed by Parking Systems at 9.7% and Aircraft at 6.2%, while Industrial & Environmental Systems lagged at 2.1%. 【キャッシュ品質】Operating Cash Flow was ¥243.6B, 2.99x of Net Income ¥81.5B, and the Operating CF/EBITDA ratio was 1.09x, indicating solid cash generation. FCF was ¥137.9B (Operating CF ¥243.6B - Investing CF ¥105.7B), sufficiently covering dividend payments of ¥35.7B. On working capital, accounts receivable were ¥795.7B (up ¥47.1B from ¥748.6B, days sales outstanding 102 days), inventories were ¥638.8B (up ¥23.4B from ¥615.4B, days inventory outstanding 99 days), while accounts payable increased significantly to ¥452.1B (up ¥139.1B from ¥313.0B, days payable outstanding 70 days), resulting in a CCC of 131 days. Work in progress amounted to ¥273.2B, accounting for 42.8% of inventories, making project-type project progress control key to working capital efficiency. 【投資効率】Capital expenditures were ¥93.6B (1.52x depreciation ¥61.7B), continuing growth investments; intangible fixed asset investments were ¥9.5B. 【財務健全性】Equity Ratio was 42.5% (up 0.5pt from 42.0%), current ratio 167.1%, and quick ratio 162.2%, indicating ample liquidity. Interest-bearing debt was ¥489.6B (short-term borrowings ¥49.6B + long-term borrowings ¥440.0B), cash and deposits were ¥360.6B, net interest-bearing debt was ¥129.0B, Debt/EBITDA was 1.78x, and interest coverage was 30.5x, indicating sufficient financial capacity.

キャッシュフロー分析

Operating Cash Flow was ¥243.6B (YoY +¥38.7B +18.9%). Profit before tax was ¥160.0B, to which depreciation ¥61.7B, impairment losses ¥7.6B and other non-cash items were added. In working capital, accounts receivable increased ¥96.5B and inventories increased ¥22.5B, while accounts payable increased ¥138.0B and contract liabilities increased ¥52.5B, which helped restrain cash outflow from working capital changes. After deducting corporate taxes paid ¥54.6B, the subtotal of Operating CF moved from ¥295.3B to ¥243.6B. Investing CF was -¥105.7B, consisting of capital expenditures ¥93.6B, intangible asset acquisitions ¥9.5B, and acquisitions of investment securities ¥2.9B, partially offset by proceeds such as sales of tangible fixed assets ¥0.4B and net withdrawal of time deposits ¥0.4B. Financing CF was -¥62.6B: despite raising long-term borrowings ¥320.0B, outflows included long-term borrowings repayments ¥10.0B, short-term borrowings repayments ¥10.9B, bond redemptions ¥8.0B, dividend payments ¥35.7B, and share repurchases ¥0.0B. As a result, cash and cash equivalents increased ¥76.1B from the beginning balance of ¥282.8B to ¥358.9B.

収益の質

Earnings quality is sound. Operating Income ¥163.3B is almost identical to Ordinary Income ¥163.2B, indicating that operating performance is the primary earnings source. Special items were a net -¥3.3B (2.9% of Net Income), minor in scale; impairment losses of ¥7.6B relate to assets in Industrial & Environmental Systems and are considered temporary, and gains on sales of investment securities ¥2.6B were limited. Of non-operating income ¥18.4B (0.6% of sales), foreign exchange gains ¥7.0B benefited from yen depreciation, while dividend income ¥3.1B and insurance dividend income ¥1.7B represented mainly recurring receipts. Operating CF was ¥243.6B, 2.99x Net Income ¥81.5B, and OCF/EBITDA ratio was 1.09x, indicating high cash generation; the accrual ratio was -19.9%, demonstrating strong cash backing of profits. Comprehensive income was ¥164.4B (Net Income ¥81.5B + Other Comprehensive Income ¥82.9B); OCI included valuation differences on securities ¥27.9B, actuarial differences on retirement benefits ¥12.6B, and translation adjustments ¥7.5B, reflecting contributions from stock price gains and pension asset improvements, though these are temporary and distinct from recurring operating performance.

業績予想・ガイダンス

Full Year / FY guidance forecasts Revenue ¥3,124.0B (YoY +9.6%), Operating Income ¥170.0B (YoY +4.1%), Ordinary Income ¥155.0B (YoY -5.0%), and Net Income ¥105.0B (YoY -8.8%). Progress against the full-year guidance based on current results is: Revenue 91.2%, Operating Income 96.1%, Ordinary Income 105.3%, Net Income 109.6%. Revenue lags plan pacing, but profits exceeded plan. The outperformance on Ordinary Income and Net Income is attributed to a higher mix of high-margin segments and improved cost control. EPS outperformed with actual ¥174.02 versus forecast ¥158.75. Dividend guidance is annual ¥29 (actual annual dividend was ¥56: interim ¥27 + year-end ¥29). Accumulation of contract liabilities ¥214.2B enhances visibility for next fiscal year sales, supporting expectation of improved progress rates going forward.

株主還元

Annual dividend was ¥56 (interim ¥27, year-end ¥29), payout ratio 38.3%, and DOE approximately 3.1%. The company increased the annual dividend substantially from ¥25 last year (+¥31 +124%), reflecting profit growth in shareholder returns. FCF ¥137.9B covers dividend payments ¥35.7B 3.86x, indicating high dividend sustainability. Share repurchases were minimal at ¥0.0B, so the Total Return Ratio is roughly aligned with the payout ratio. With cash and deposits ¥360.6B and steady OCF generation, stable dividend continuation and potential for further increases are anticipated.

リスク要因

1. Decline in profitability of Industrial & Environmental Systems: Revenue ¥273.2B (-17.9%), Operating Income ¥5.7B (-74.1%), margin 2.1% — significant revenue and profit decline due to reduced demand for automatic wire processing machines and waste treatment equipment and deterioration in project margins. Delayed turnaround in this segment could slow company-wide margin improvement.

2. Working capital stagnation: DSO 102 days, DIO 99 days, CCC 131 days indicate heavy working capital stagnation, with work in progress accounting for ¥273.2B (42.8% of inventories). Continued project bottlenecks or delayed acceptances could increase cash generation volatility and crystallize credit costs or inventory write-down risks.

3. Foreign exchange and raw material price risk: Foreign exchange gains ¥7.0B contributed to non-operating income, but exchange rate appreciation of the yen would be a headwind. With gross margin at 17.3% — structurally in a thin range — increases in raw material and component procurement costs could compress gross margins and slow operating margin improvement.

業種ベンチマーク（参考・当社調べ）

収益性・リターン

Operating margin is 2.0pt below the industry median, indicating room for profitability improvement versus manufacturing peers.

成長性・資本効率

Revenue growth rate is 3.3pt above the industry median, achieving a top-tier growth pace within manufacturing.

※Source: Company compilation

決算上の注目ポイント

1. Operating-driven profitability improvement and growth of high-margin segments: Operating margin improved to 5.7% (up 0.5pt from 5.2%), and ROE recovered to 6.5%. High-margin segments—Fluid Systems (margin 15.6%) and Parking Systems (margin 9.7%)—drove margin expansion. Aircraft’s substantial revenue growth (+23.3%) is also a growth driver; increasing the proportion of high-margin segments will be key to further company-wide profitability improvement.

2. Accumulation of contract liabilities and backlog depth: Contract liabilities rose to ¥214.2B (YoY +32.5%), confirming backlog depth and enhancing revenue visibility for subsequent fiscal years, suggesting sustainability of growth. Conversely, a high WIP ratio of 42.8% signals potential project progress bottlenecks; improving progress management is key to cash generation and margin improvement.

3. Room for working capital efficiency improvement and sustainability of cash generation: CCC 131 days, DSO 102 days, DIO 99 days indicate heavy working capital stagnation; reducing receivables and inventories is a future priority. The significant increase in payables (+¥139.1B +44.4%) boosted OCF but requires cautious assessment of sustainability. Improving working capital efficiency could further enhance ROIC and FCF.

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This report was automatically generated by AI analyzing XBRL financial report data and is a financial analysis document. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the firm based on public financial statements. Investment decisions are your own responsibility; consult a professional advisor as needed.