Makita (6586) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FYE2026 was ¥378.4 billion, down 2.1% year-over-year, with domestic sales up 3.7% and overseas sales down 3.2%, mainly due to sluggish housing demand and high interest rates globally.

• Operating profit rose 0.2% year-over-year to ¥51.5 billion, supported by cost reductions and favorable foreign exchange impacts, with an improved operating profit ratio of 13.6%.

• Profit attributable to owners of the parent increased 1.6% to ¥38.8 billion, and EPS rose to ¥145.80.

• Comprehensive income surged 252.9% year-over-year to ¥66,917 million, driven by significant exchange differences on translating foreign operations.

Financial highlights

• Cost of sales decreased by 5.4%, improving the cost of sales ratio by 2.3 points to 63.6%.

• Gross profit for the period was ¥137,576 million, up from ¥131,917 million in the prior year.

• SG&A expenses increased 6.9%, raising the SG&A ratio to 22.8%.

• Capital expenditures for the period were ¥11.2 billion, with notable investments in warehouse construction in Japan, Australia, and Singapore.

• R&D costs increased to ¥8.1 billion.

Outlook and guidance

• Full-year FYE2026 revenue is forecast at ¥730.0 billion, down 3.1% year-over-year but 4.3% higher than the previous forecast.

• Operating profit is projected to decline 11.2% to ¥95.0 billion, with a lower operating profit ratio of 13.0%, but 28.4% above the previous forecast.

• Profit attributable to owners of the parent is expected to decrease 13.7% to ¥68.5 billion, and EPS to ¥257.41.

• Capital expenditures are forecast to rise to ¥28.0 billion, and R&D costs to ¥16.5 billion.

• Assumed exchange rates for the forecast: 143 JPY/USD, 167 JPY/EUR, 20.2 JPY/RMB.