Makino Milling Machine Co., Ltd.
6135・Prime Market・Machinery
Business
Makino Milling Machine Co., Ltd. is a machine tool specialist founded in 1937 that manufactures, sells, and services machining centers, electrical discharge machines, laser processing machines, and related equipment. The company has built a four-region sales structure covering Japan (Segment I), Asia (MAKINO ASIA PTE LTD), North and South America (MAKINO INC.), and Europe (MAKINO Europe GmbH), serving a broad range of manufacturing customers including automotive, aerospace, semiconductor manufacturing equipment, and mold-making industries. Manufacturing is concentrated in Japan and Asia, with sales and service operations conducted through 40 consolidated subsidiaries worldwide. Consolidated net sales for FY2026 (ending March 2026) reached ¥261,184 million, a new record high.
Business Model
Under this structure, manufacturing and sales functions are separated: Segment I (Makino Milling Machine / Domestic Consolidated Subsidiaries) manufactures products and transfers them internally (¥90,044 million) to global sales subsidiaries. Each regional subsidiary is responsible for sales, installation, and after-sales service to local customers, with parts and repair revenue also serving as a source of income. Product unit prices and added value are enhanced by incorporating intelligent software and automation systems equipped with iKnowledge Technology.
Company Strengths
Since its founding in 1937, the company has successively developed Japan's first domestically produced NC vertical milling machine (1958) and Japan's first domestically produced machining center (1966), among others. R&D expenses for FY2026 (ending March 2026) totaled ¥9,838 million (of which Segment I accounted for ¥7,121 million). During the current period, the company also commercialized the 5-axis control horizontal machining center a630iT and the next-generation control device Professional 7, achieving continuous product renewal.
The company has established sales subsidiaries across four regions—Japan, Asia, North and South America, and Europe. Consolidated orders received for FY2026 (ending March 2026) reached a record high of ¥269,982 million (up 13.5% year on year). The consolidated order backlog grew to ¥110,238 million (up 8.7% year on year), with the order backlog in Europe (Segment IV) surging 74.1% year on year to ¥14,268 million, serving as a leading indicator for future sales.
The equity ratio remained at a high level of 61.7% at the end of FY2026 (ending March 2026). Interest-bearing debt was reduced by ¥4,883 million year on year to ¥47,759 million. Operating cash flow expanded sharply to ¥33,227 million (up 144.8% year on year), and the interest coverage ratio reached 52.0 times. Despite capital expenditures of ¥21,052 million, the company maintained a financial base with cash and cash equivalents of ¥75,151 million.
ENVALITH's Perspective
Performance Trend
Sales expanded by over 40% over five periods, from ¥186,591 million in FY2022 to ¥261,184 million in FY2026. Operating margin improved from 7.9% in FY2025 to 9.6% in FY2026, and ROE also rose from 6.4% to 8.6%. Externally, demand for molds related to NEVs and electrical/electronic components in China (Segment II sales +28.0%) and sustained high-level demand for U.S. aerospace applications (Segment III sales +8.1%) drove performance. Operating cash flow improved to ¥33,227 million, 2.4 times the previous period, substantially strengthening cash generation capacity. For FY2027 (ending March 2027), sales of ¥276,000 million (+5.7%) and operating profit of ¥27,600 million (+10.2%) are forecast.
Growth Strategy
Accelerating global growth through capacity expansion, new product introductions, and capturing demand from aerospace, NEV, and semiconductor equipment sectors
Construction in progress has surged to ¥24,410 million (up ¥13,094 million from the previous fiscal year-end), reflecting active promotion of production capacity expansion investment to meet robust global demand. Acquisitions of property, plant and equipment expanded to ¥18,299 million (¥14,945 million in the previous fiscal year).
Multi-front expansion into growth areas continues, including sustained high-level orders for aerospace applications in the Americas, steady progress in NEV- and electrical/electronic component-related molds in China, and increased orders for semiconductor manufacturing equipment-related parts processing in Japan. The policy is to continue capturing similar demand across regions in the next fiscal year.
Focus on increasing orders for 5-axis machines and automation systems that appeal to productivity improvement. Through the expansion of intelligent software centered on iKnowledge Technology, the company is promoting a shift from standalone machine sales to solution provision, aiming to revise selling prices and improve profit margins.
Through the presentation of the latest 5-axis control machining centers and automation proposals at IMTS Chicago in September 2026, and the exhibition of new models at JIMTOF in October 2026, the company will strengthen acquisition of new business opportunities, primarily for aerospace and industrial machinery applications. Order backlogs accumulated in Europe and the Americas will be converted into sales.
With inventory increasing to ¥108,007 million (¥98,218 million in the previous fiscal year), the company is promoting inventory optimization. Asset efficiency is being improved through the reduction of cross-shareholdings, among other measures, aiming to enhance ROE and ROA. Gains on sales of investment securities in FY2026 (ending March 2026) increased significantly year on year to ¥1,917 million.
Last updated: July 19, 2026