Makita (6586) Q1 2026 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2025, decreased 3.8% year-over-year to ¥186,614 million, mainly due to foreign exchange impacts, while operating profit rose 22.1% to ¥26,069 million, driven by cost reductions and FX effects.

• Profit attributable to owners of the parent increased 20.4% year-over-year to ¥19,281 million; basic EPS was ¥72.07, up from ¥59.51.

• Comprehensive income dropped 50.6% year-over-year to ¥26,936 million, mainly due to lower exchange differences on translating foreign operations.

Financial highlights

• Gross profit increased to ¥68,983 million from ¥63,154 million year-over-year, with a gross margin improvement.

• Operating profit margin rose to 14.0% from 11.0% year-over-year.

• Total assets decreased to ¥1,089,628 million as of June 30, 2025, from ¥1,106,525 million at March 31, 2025, mainly due to lower cash balances.

• Equity attributable to owners of the parent declined to ¥913,167 million, reflecting treasury share repurchases.

• Cash flows from operating activities fell to ¥14,202 million from ¥30,817 million year-over-year.

Outlook and guidance

• Full-year revenue forecast for FY2026 is ¥700,000 million, a 7.1% decrease year-over-year; operating profit and profit before tax are both forecast at ¥74,000 million, up over 30%.

• Profit attributable to owners of the parent is projected at ¥54,000 million, up 31.9% year-over-year; basic EPS forecast is ¥201.83.

• Dividend policy targets a total return ratio of at least 35%, with a minimum annual dividend of ¥20 per share.