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| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥932.2B | ¥923.2B | +1.0% |
| Operating Income / Operating Profit | ¥52.8B | ¥63.9B | −17.3% |
| Equity-method Investment Income | - | - | - |
| Ordinary Income | ¥54.9B | ¥65.1B | −15.7% |
| Net Income / Net Profit | ¥28.9B | ¥33.4B | −13.5% |
| ROE | 2.8% | 3.3% | - |
Executive Summary
For the fiscal year ended February 2026, Revenue was ¥932.2B (YoY +¥9.0B +1.0%), Operating Income was ¥52.8B (YoY -¥11.1B -17.3%), Ordinary Income was ¥54.9B (YoY -¥10.2B -15.7%), and Net Income attributable to owners of parent was ¥34.5B (YoY -¥4.6B -11.8%). The core Construction Equipment (建機) business contributed to revenue growth (+3.5%), but an increase in SG&A (YoY +¥15.9B +7.8%), goodwill amortization burden (¥10.9B), and a revenue decline in the high‑margin Real Estate business (-25.2%) worsened the sales mix, resulting in revenue up but profits down. Operating margin fell 120bp from 6.9% to 5.7%, and ROE declined from 3.9% to 2.8%. Comprehensive income was ¥52.4B (YoY +34.3%), where valuation gains on securities of ¥16.9B partly offset the decline in Net Income. Cash generation remained strong: Operating Cash Flow was ¥124.8B (OCF/Net Income multiple 3.62x), Free Cash Flow was ¥59.7B, supporting dividend payments of ¥49.5B and capital expenditures of ¥6.9B, preserving the financial structure.
Drivers of Performance
Revenue increased slightly by ¥9.0B (+1.0% YoY). The Construction Equipment Business was the mainstay at ¥768.4B (+3.5%), and the Trading Business was solid at ¥107.9B (+2.0%), while the Real Estate Business contracted sharply from ¥74.8B to ¥55.9B (-25.2%). Gross profit rose to ¥273.8B (YoY +¥4.8B, gross margin 29.4%), but SG&A expanded to ¥221.0B (¥+15.9B), leading Operating Income to decline to ¥52.8B (¥-11.1B -17.3%). The SG&A increase reflects higher personnel and maintenance costs, and ongoing goodwill amortization of ¥10.9B (slightly down from ¥11.2B prior year) remained a steady burden. Operating margin declined to 5.7% (from 6.9%), a 120bp drop, as the sales mix deteriorated with a shrinkage of the high‑margin Real Estate segment and a relatively low‑margin Construction Equipment segment accounting for 82.4% of revenue. Non‑operating items contributed a net ¥2.0B (dividend income ¥1.6B, interest income ¥0.4B, private equity fund gains ¥0.3B), leaving Ordinary Income at ¥54.9B (-15.7%). Extraordinary items were minor: net positive ¥1.1B (extraordinary gains ¥1.4B — gain on sale of investment securities ¥0.2B, negative goodwill ¥0.6B, etc.; extraordinary losses ¥0.3B — impairment of fixed assets ¥0.2B, etc.). Pre‑tax income of ¥55.9B less income taxes of ¥20.4B (effective tax rate 36.6%) and excluding non‑controlling interests of ¥1.0B resulted in Net Income attributable to owners of parent of ¥34.5B (-11.8%). Net income margin declined 54bp to 3.7% (from 4.2%). In summary: revenue up, profit down.
Segment Analysis
The Construction Equipment Business recorded Revenue of ¥768.4B (+3.5% YoY), accounting for 82.4% of company revenue, but Operating Income fell to ¥27.9B (-15.6%), with margin down to 3.6% (from 4.5%, -90bp). The Trading Business posted Revenue ¥107.9B (+2.0%) and Operating Income ¥6.4B (+11.7%), with margin improving to 5.9%, the only segment to increase profit. The Real Estate Business saw Revenue decline to ¥55.9B (-25.2%) and Operating Income to ¥18.4B (-26.4%), but retained high profitability with a margin of 32.9%. Profitability differences across segments are large — Real Estate 32.9%, Trading 5.9%, Construction Equipment 3.6% — and the shrinkage of the high‑margin Real Estate business combined with lower Construction Equipment margins directly caused the 120bp decline in consolidated operating margin. Concentration in Construction Equipment (revenue mix 82.4%, operating income contribution 52.9%) is high, making performance sensitive to demand cycles and utilization fluctuations in a single business.
Key Financial Metrics
Profitability metrics declined: Operating Margin 5.7% (down 120bp from 6.9%), Ordinary Income Margin 5.9% (down 100bp), Net Income Margin 3.7% (down 54bp). ROE was 2.8% (down 110bp from 3.9%), primarily driven by lower Net Income. Total Asset Turnover was 0.635x (0.632x prior year) — essentially flat — and Financial Leverage was 1.42x (1.43x prior year) — slightly lower. ROA decreased to 3.7% (from 4.5%), indicating no improvement in capital efficiency. Operating cash quality is strong: Operating Cash Flow ¥124.8B vs Net Income ¥28.9B gives OCF/NI multiple 4.32x, and Operating Cash Flow/EBITDA (EBITDA = Depreciation + Goodwill amortization + Operating Income = ¥127.6B) is 0.98x, which is healthy. The accrual ratio ((Net Income ¥28.9B - Operating CF ¥124.8B) / Net Assets ¥1,031.8B) = -9.3% (negative), indicating strong cash backing for profits. Investment efficiency is weak: Capital Expenditure ¥6.9B vs Depreciation ¥72.7B gives CapEx/Depreciation 0.09x, showing strong investment restraint — helpful for short‑term FCF but a concern for medium‑term growth and asset competitiveness. Financial health improved: Equity Ratio 70.3% (up 140bp from 68.9%), Current Ratio 196.3% (down from 225.3% but still high), Quick Ratio 176.7% — extremely strong short‑term liquidity. Interest‑bearing debt totaled ¥13.4B (current ¥3.6B — short‑term borrowings ¥1.1B, lease liabilities ¥3.3B; non‑current ¥9.8B — long‑term borrowings ¥2.3B, lease liabilities ¥7.5B), against Cash and Deposits ¥162.7B and Short‑term Investment Securities ¥10.0B, resulting in Net Cash ¥159.3B — effectively debt‑free. Net Debt/EBITDA is -1.25x, and interest coverage (Operating CF / interest paid) is 56.7x, indicating no issue servicing interest. Goodwill ¥88.3B is 8.6% of Net Assets and 0.69x of EBITDA, in a healthy range, but JGAAP goodwill amortization (¥10.9B/year) continues to pressure Operating Income.
Cash Flow Analysis
Operating CF was ¥124.8B (down 20.0% from ¥156.1B prior year). Pre‑tax profit before tax adjustments was ¥55.9B with Depreciation ¥72.7B, Goodwill amortization ¥10.9B, and movements in provisions, resulting in Operating CF subtotal before working capital changes of ¥150.2B. Working capital changes — increase in trade receivables -¥2.4B, increase in inventories +¥2.8B, increase in trade payables +¥5.4B — produced a modest net positive effect, and after income tax payments -¥25.2B, Operating CF totaled ¥124.8B. Investing CF was -¥65.1B, comprising Capital Expenditure -¥6.9B, acquisition of subsidiary shares -¥59.6B (M&A related), proceeds from sale of subsidiaries +¥2.1B, acquisition of investment securities -¥2.1B, proceeds from sale of securities +¥1.1B, etc. Free Cash Flow was Operating CF ¥124.8B - Investing CF ¥65.1B = ¥59.7B. Financing CF was -¥114.9B, mainly dividend payments -¥49.5B, net repayment of borrowings -¥2.5B, proceeds from sale‑and‑leaseback +¥2.6B, etc. As a result, cash decreased by ¥55.1B, leaving year‑end balance of ¥172.7B (Cash and Deposits ¥162.7B + Short‑term Investment Securities ¥10.0B). High Operating CF/Net Income multiple (4.32x), Operating CF/EBITDA 0.98x, and accrual ratio -9.3% indicate strong profit quality. FCF ¥59.7B covered dividends ¥49.5B and CapEx ¥6.9B (total ¥56.4B), yielding FCF coverage 1.06x and providing a degree of sustainability.
Quality of Earnings
Non‑operating income ¥4.8B (0.5% of sales) and non‑operating expenses ¥2.8B (0.3% of sales) resulted in a modest net ¥2.0B, indicating Operating Profit is the main driver of Ordinary Income. Major non‑operating items were dividend income ¥1.6B, interest income ¥0.4B, and private equity fund gains ¥0.3B — all of which are largely recurring in nature. Extraordinary items were limited (net ¥1.1B, 0.1% of sales), with extraordinary gains ¥1.4B (gain on sale of investment securities ¥0.2B, negative goodwill ¥0.6B, etc.) less extraordinary losses ¥0.3B (impairment of fixed assets ¥0.2B, etc.), so one‑off effects were small. Under JGAAP, goodwill amortization of ¥10.9B is included in SG&A and continuously depresses Operating Income and Net Income, hence comparison with IFRS peers is better done on EBITDA (Operating Income ¥52.8B + Depreciation ¥72.7B + Goodwill amortization ¥10.9B ≈ ¥136.4B). Operating CF being 4.32x Net Income and accrual ratio -9.3% indicate strong cash backing of profits and high quality of earnings. Comprehensive Income ¥52.4B far exceeded Net Income ¥28.9B, with Other Comprehensive Income ¥16.9B (valuation difference on available‑for‑sale securities) boosting Net Assets, but this is valuation‑based and not cash‑backed unrealized gains.
Forecasts & Guidance
Full Year guidance projects Revenue ¥1,000.0B (YoY +¥67.8B +7.3%), Operating Income ¥58.0B (YoY +¥5.2B +9.8%), Ordinary Income ¥59.5B (YoY +¥4.6B +8.5%), and Net Income attributable to owners of parent ¥36.0B (YoY +¥1.5B +4.3%). Expected Operating Margin is 5.8% (current 5.7% +10bp) — only a slight improvement — and Net Income Margin is planned at 3.6% (current 3.7% -10bp). Assumptions include improved utilization and pricing in the Construction Equipment Business and continued profit growth in the Trading Business. The Real Estate Business is subject to large timing volatility depending on project recognition. Realization of post‑M&A integration effects (acquisition of subsidiary shares ¥59.6B, goodwill increase ¥30.0B) will be key to driving future profit increases. Dividend guidance is ¥0.00, implying no interim dividend and year‑end dividend undecided.
Shareholder Returns
Year‑end dividend is ¥100 (no interim dividend), with total dividends of ¥49.5B against Net Income attributable to owners of parent of ¥34.5B, implying a Payout Ratio of 143.3%, well above 100%. Free Cash Flow ¥59.7B covers dividends ¥49.5B and CapEx ¥6.9B (total ¥56.4B), so short‑term cash generation supports the dividend, but sustained payout ratios above 100% will constrain retained earnings growth and limit mid‑term investment capacity. Net cash ¥159.3B and a strong balance sheet underpin payout ability, but from a sustainability perspective a revision toward dividends aligned with earnings growth would be desirable. Full year dividend forecast is ¥0.00 and undecided; disclosure of future performance outlook and capital allocation policy will be closely watched. No share buybacks were executed; shareholder returns are dividends only.
Risk Factors
- Concentration risk in Construction Equipment Business: extremely high revenue mix at 82.4% exposes the company to construction/civil demand cycles, utilization declines, and deterioration in the used equipment market. SG&A growth rate (+7.8%) exceeds revenue growth rate (+1.0%), creating negative operating leverage; in a demand downturn profits could compress rapidly. 2. Timing dependence of Real Estate project recognition: Revenue dropped sharply from ¥74.8B to ¥55.9B (-25.2%). Because this is a high‑margin (32.9%) business, variability in project timing can materially impact performance; absent steady project supply, volatility will persist. 3. Mid‑term competitiveness risk from investment restraint: CapEx/Depreciation ratio 0.09x is extremely low — it helps short‑term FCF but risks asset aging, technology obsolescence, and delayed responses to customer needs, potentially eroding mid‑ to long‑term competitiveness. Dependence on external growth via M&A (acquisition of subsidiary shares ¥59.6B) means that if integration effects do not materialize as planned, improving capital efficiency will be difficult.
Industry Benchmark (Reference, Company Analysis)
Industry positioning (reference info, company analysis): Compared with the wholesale industry median (FY2025), Operating Margin 5.7% exceeds the industry median 3.4%, and Net Income Margin 3.7% also exceeds the median 2.3%. ROE 2.8% is well below the industry median 6.8%, highlighting weak capital efficiency. Equity Ratio 70.3% is substantially above the industry median 45.1%, indicating top‑tier financial health. Current Ratio 196.3% also exceeds the industry median 188%, so short‑term liquidity is sufficient. CapEx/Depreciation ratio 0.09x is far below the industry median 0.62x, showing pronounced investment restraint. Net Debt/EBITDA -1.25x is more net cash than the industry median -0.17x, so financial flexibility is top‑tier, but failure to effectively allocate excess cash to growth investments or shareholder returns has contributed to weak capital efficiency. Payout Ratio 143.3% far exceeds the industry median 29%, raising sustainability concerns. Total Asset Turnover 0.635x is well below the industry median 1.30x, indicating room to improve asset efficiency. Overall, financial stability is above industry peers, but profitability and capital efficiency lag, with investment restraint and low asset efficiency constraining growth.
Key Points from the Results
- Strong balance sheet and high cash generation: Net Cash ¥159.3B, Equity Ratio 70.3%, Operating CF/Net Income multiple 4.32x — financials and cash flow are very healthy, with no short‑term liquidity or going‑concern issues. Accrual ratio -9.3% indicates good profit quality, and FCF covers dividends and minimal CapEx. 2. Low ROE/ROIC and mid‑term risk from investment restraint: ROE 2.8% is far below the industry median 6.8%; continued low CapEx/Depreciation ratio 0.09x raises the risk of asset aging, competitiveness loss, and missed growth opportunities. Growth strategy reliant on M&A (acquisition of subsidiary shares ¥59.6B, goodwill increase ¥30.0B) will not improve capital efficiency unless integration benefits are realized. Continued Payout Ratio 143.3% compresses retained earnings and restricts future investment capacity. 3. Segment concentration and the key to improving the sales mix: Construction Equipment accounts for 82.4% of revenue, making performance vulnerable to single‑business demand cycles. The -25.2% decline in the high‑margin Real Estate business (margin 32.9%) caused a 120bp decline in operating margin; stabilizing Real Estate project recognition and lifting Construction Equipment margins (via utilization and improvement in used equipment profitability) are focal points for restoring profitability.
This report was automatically generated by AI analyzing XBRL financial statement disclosure data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by our firm from public financial statements. Investment decisions are your responsibility; consult a professional advisor as necessary.