Makita (6586) Q4 2026 earnings summary

Executive summary

• Revenue for FYE2026 rose 3.2% year-over-year to ¥777.6 billion, driven by expanded sales force, new market entries, yen depreciation, and solid non-residential demand, despite sluggish construction markets and U.S. tariff impacts.

• Operating profit declined 2.2% to ¥104.7 billion due to increased personnel, sales, and advertising expenses.

• Profit attributable to owners of the parent was ¥79.4 billion, nearly flat year-over-year, while comprehensive income more than doubled to ¥157,388 million due to favorable exchange differences.

• Annual cash dividend per share increased by ¥40 to ¥150, with a revised dividend policy targeting a consolidated payout ratio of 50% or more.

• Treasury shares repurchased totaled ¥55.9 billion, with increased buybacks and higher dividend payments in FY2026.

Financial highlights

• Domestic revenue grew 3.9% to ¥132.1 billion; overseas revenue up 3.1% to ¥645.5 billion.

• Gross profit rose to ¥283,971 million from ¥271,426 million year-over-year.

• EPS increased to ¥299.95.

• Total assets grew to ¥1,181,185 million, and equity attributable to owners of the parent reached ¥997,340 million.

• Net cash provided by operating activities was ¥102,336 million, down ¥27,538 million year-over-year.

Outlook and guidance

• FYE2027 revenue forecasted at ¥820.0 billion (+5.5% YoY), with operating profit expected to rise 5.1% to ¥110.0 billion and profit attributable to owners at ¥81.0 billion (+2.0%).

• EPS projected to increase to ¥313.45.

• Production and sales volumes are expected to grow 3.4% and 4.1%, respectively.

• Focus on expanding cordless product lines, strengthening R&D, and diversifying production and procurement.

• Capital expenditures planned at ¥30.0 billion, R&D costs at ¥18.5 billion for FYE2027.