ENVALITH
オークマ株式会社 logo

OKUMA Corporation

6103・Prime Market・Machinery

Official website
オークマ株式会社 logo
OKUMA Corporation6103

Business

Okuma Corporation, founded in 1898, is a machine tool specialist manufacturer that manufactures and sells NC Lathes, Machining Centers, Multitasking Machines, NC Grinding Machines, and other equipment. The company is composed of itself, 16 consolidated subsidiaries, and 15 non-consolidated subsidiaries, and conducts business across four regional segments: Japan, Americas, Europe, and Asia-Pacific. Based on manufacturing within Japan (over 90% of production output), the company delivers products through sales and After-Sales Service networks around the world. Major customers range widely, from large manufacturers in aerospace and defense, medical equipment, automobiles, semiconductor manufacturing equipment, and energy-related fields, to mid-sized and small-to-medium enterprises. In FY2025, consolidated net sales were ¥235,888 million, with the overseas sales ratio reaching 73.3%.

Business Model

Based on the core philosophy of "Total Responsibility," which involves the integrated development of the in-house developed NC device "OSP" and the machine tool body itself, the company has adopted a "Manufacturing Service" model that consistently provides not only product sales but also automation solutions, smart factory construction support, and After-Sales Service (maintenance parts and repairs). While improving order unit prices by focusing on high-value-added 5-Axis Control Machining Centers and Multitasking Machines, the company has already achieved Global 70 (overseas sales ratio of 70% or more), securing stable earnings through regional diversification.

Company Strengths

As one of the world's leading comprehensive machine tool manufacturers, the company develops and installs its proprietary NC device "OSP," achieving high-precision, high-efficiency machining through integrated design of machines and controls. In FY2025, the company developed digital twin functionality, smart OSP operation, and energy-saving controls (a 40% reduction in power consumption versus previous models via the spindle cooling device) for the new-generation CNC "OSP-P500," giving it a technological foundation that competitors find difficult to replicate in a short period.

In addition to DS1, DS2, and DS3 at the head office plant and Kani Plant, the company launched Dream Site Engineered Solutions (DSES) at the Konan Plant in January 2026 and the Global Innovation Center (GIC) in May 2026. It has established a system for offering customers solutions based on smart factory construction know-how accumulated through demonstrations of automation and labor-saving at its own plants.

The company has manufacturing, sales, and after-sales service bases across four regions: Japan, the Americas, Europe, and Asia-Pacific. The consolidated order backlog at the end of FY2025 stood at ¥101,407 million (up 5.1% year on year). Orders received in the Americas in the second half reached a record high, and the overseas sales ratio reached 73.3%. The substantial order backlog enhances visibility of revenue and profit for the following period and beyond.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue recovered to ¥235,888 million (up 14.1% year on year), but the operating margin declined year on year to 6.6% (7.1% in the prior period). The cost of sales ratio rose from 68.3% in the prior period to 70.6%, as rising material costs, persistently high transportation costs, increased human capital investment, and low operating rates in the first half squeezed profits. The gap versus the peak levels of FY2023 and FY2024 (operating margin above 10%) remains significant, and a full-scale recovery in margins remains a challenge.

As an external factor, uncertainty over US tariff policy continues to keep mid-tier and small businesses cautious about capital expenditure, and this is also affecting domestic demand from small and medium-sized automotive-related customers. In Europe, demand remains weak due to sluggishness in the automotive industry and weak exports, compounded by the impact of tariffs. Meanwhile, demand from major customers in aerospace, defense, data centers, and energy remains firm, and demand polarization continues. Achieving the FY2027 (ending March 2027) forecast (revenue of ¥245,000 million, operating profit of ¥19,000 million) will depend on a recovery in demand from mid-tier and small businesses and the pass-through of tariff impacts.

The equity ratio stood at 72.0% (76.3% in the prior period), maintaining financial soundness, but investing cash flow (an outflow of ¥29,233 million) due to acquisition of tangible and intangible fixed assets exceeded operating cash flow (¥23,821 million), resulting in negative free cash flow. Long-term borrowings also increased by ¥15,000 million to ¥20,000 million. ROE (return on equity) remained at a low 5.3%, and improving capital efficiency continues to be a key focus for investors. The share buyback (¥5,002 million) demonstrates a shareholder return stance, while the dividend payout ratio of 48.1% and dividend of ¥100 per share are maintained.

Growth Strategy

Capturing demand from growth industries through global expansion of Green-Smart Machine and Automation Solutions

The "Dream Site Engineered Solutions," completed in January 2026 at the Kani Plant (Konan City, Aichi Prefecture), provides concentrated production of automation lines and a test machining environment for customers. The adjacent "Global Innovation Center" began operations in May 2026, functioning as a co-creation hub for next-generation automation solutions. Together with the enhanced production capacity for 5-Axis and Multitasking Machines at the head office and Kani Plant, this strengthens the company's ability to respond to expanding demand.

The "Okuma PDC (Process Distribution Center)," completed within the Kani Plant in September 2025, began operations in January 2026. By consolidating warehouse and logistics functions, the center improves delivery efficiency, and by co-locating high-value-added processes such as unit production, it simultaneously reduces logistics costs and Scope 3 greenhouse gas emissions. This also enhances the company's appeal to customers as a practical demonstration of its own decarbonization solutions.

Demand from aerospace, space and satellites, defense, medical devices, and data center/energy-related sectors continues to expand, mainly in the United States and Japan. Green-Smart Machine, centered on 5-Axis Control Machining Centers and Multitasking Machines, addresses process consolidation needs. Sales promotion activities were conducted through participation in EMO Hannover 2025 and the hosting of the Okuma Machine Fair 2025. Results are becoming evident, with orders for Multitasking Machines in FY2026 (ended March 2026) reaching ¥66,714 million, up 17.5% year on year.

In China, the company has steadily secured orders for large-scale investment projects from major EV manufacturers, while also capturing solid demand related to semiconductor manufacturing equipment and wind power generation. Sales in China expanded sharply to ¥53,046 million, up significantly from ¥34,182 million in the previous fiscal year. Demand remains solid in other parts of Asia as well, with external customer sales in the Asia-Pacific segment reaching ¥15,686 million, up 13.2% year on year. The company will continue to strengthen its efforts in the Asian and Indian markets based on the Medium-Term Management Plan 2025.

Last updated: July 19, 2026