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 headcount, 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, SG&A, and advertising expenses.

• Profit attributable to owners was stable at ¥79.4 billion, with EPS at ¥299.95.

• Dividend policy revised to a consolidated payout ratio of 50% or more, with annual dividend per share up ¥40 to ¥150.

• Comprehensive income more than doubled to ¥157,388 million, mainly due to favorable exchange differences.

Financial highlights

• Overseas revenue grew 3.1% to ¥645.5 billion; domestic revenue up 3.9% to ¥132.1 billion.

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

• Operating profit margin was 13.5%, down from 14.2% the previous year.

• Basic EPS increased to ¥299.95 from ¥294.90 year-over-year.

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

Outlook and guidance

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

• EPS projected to rise to ¥313.45.

• Dividend payout policy revised to a minimum consolidated payout ratio of 50% starting FY2026.

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

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