ShinMaywa Industries (7224) Q3 2026 earnings summary

Executive summary

• Achieved record-high 3Q orders received and net sales for the third consecutive year, with overall operating profit up year-over-year and versus internal plan, despite a downturn in the EV market for Industrial Machinery & Environmental Systems.

• Orders received for the nine months ended December 31, 2025, rose 8.8% year-over-year to ¥227,618 million, with net sales up 4.5% to ¥195,739 million and order backlog up 11.1% to ¥349,687 million.

• Operating profit increased 6.5% year-over-year to ¥8,856 million, ordinary profit rose 10.1% to ¥9,298 million, and profit attributable to owners of parent surged 28.5% to ¥6,339 million.

• Profits grew overall, driven by Special Purpose Truck, Parking Systems, and Aircraft segments, offsetting declines in Industrial Machinery & Environmental Systems and Fluid.

• Comprehensive income for the period was ¥8,947 million, up 73.4% year-over-year.

Financial highlights

• 3Q FY2025 net sales: ¥227.6B (+8.8% YoY); orders received: ¥195.7B (+4.5% YoY); operating profit: ¥8.9B (+6.5% YoY); ordinary profit: ¥9.3B (+10.1% YoY); profit attributable to owners: ¥6.3B (+28.5% YoY).

• Gross profit for the nine months was ¥32,326 million, up from ¥30,029 million year-over-year.

• Basic earnings per share increased to ¥95.87 from ¥74.68 year-over-year.

• Order backlog at 3Q: ¥349.7B (+11.1% YoY).

• Free cash flow turned negative at -¥11.0B due to a decline in operating cash flow and increased inventories.

Outlook and guidance

• FY2025 forecasts: orders received ¥320.0B (+9.8% YoY), net sales ¥281.0B (+5.5% YoY), operating profit ¥15.0B (+7.4% YoY), ordinary profit ¥13.2B (-2.5% YoY), profit attributable to owners ¥9.2B (+2.7% YoY).

• Full-year net sales forecast revised down to ¥281,000 million (from ¥285,000 million), with other profit forecasts unchanged.

• Basic earnings per share forecast remains at ¥139.09.

• Annual dividend forecast at ¥54/share (DOE 3.1%), up ¥2 YoY.