KOIKE SANSO KOGYO CO., LTD.

Business Details

Manufactures and sells Medium/Large Cutting Machines, Automatic Gas Cutting Machines, gas cutting tools, Welding Machinery, and related products. Main demand comes from the shipbuilding, construction, and industrial machinery industries. In addition to domestic manufacturing, subsidiaries in the U.S., South Korea, and China handle local manufacturing and sales, with a global business structure that also extends into Europe, the Middle East, and other regions. The company's proprietary DBC (Dual Beam Control) Fiber Laser Cutting Machine is the core product. In FY2026 (ending March 2026), the segment recorded net sales of ¥25,851 million and segment profit of ¥4,833 million, generating the majority of the consolidated group's profit as the core segment.

Recent Overview

While demand from shipbuilders remained solid, weakness in other end markets led to slight declines in both sales and profit; order backlog dropped sharply

In the Machinery & Equipment segment for FY2026 (ending March 2026), net sales came to ¥25,851 million (down 0.1% year on year) and segment profit came to ¥4,833 million (down 2.0% year on year), representing modest declines in both revenue and profit. While the shipbuilding industry performed relatively well as its order backlog increased, the industrial machinery industry continued to see a declining volume of work. In South Korea and China, a recovery trend was observed in capital investment for the shipbuilding industry. The DBC Fiber Laser Cutting Machine underwent expansion to 40kW high output and bevel cutting capability. Orders received totaled ¥17,138 million (94.8% of the prior-year period) and the order backlog stood at ¥5,216 million (73.5% of the prior-year period), reflecting a significant decline in backlog that warrants close attention for its impact on sales in subsequent periods. Capital expenditure increased substantially from ¥400 million in the prior period to ¥1,019 million.

Key Products

Growth Drivers

• Stable demand supported by the shipbuilding industry's continued high level of order backlog
• Development of new demand through higher output (40kW) and expanded bevel cutting capability for the DBC Fiber Laser Cutting Machine
• Recovery trend in capital investment for the shipbuilding industry in South Korea and China
• Acquisition of new customers by addressing needs for automation, IT adoption, and unmanned operation at cutting sites
• New product development in response to shipbuilding industry users' efforts to expand production capacity and automation, positioned by the Cabinet as a strategic field
• Strengthening of overseas sales of DBC cutting machines based on the medium-term management plan's goal of "achieving customer satisfaction in global markets and strengthening the profit base"

Risks

• Downward pressure on sales in the next period due to the significant decline in order backlog (73.5% of the prior-year period)
• Sluggish market conditions in the industrial machinery industry and delay in full recovery
• Continued high construction material costs and labor shortages in the construction industry
• Decline in demand due to stagnation in the Chinese economy and the real estate market downturn
• Geopolitical risks from changes in trade policy, including U.S. tariff policy
• Profit pressure from expanding adjustment amounts, including increased company-wide expenses (from -¥1,703 million in the prior period to -¥2,162 million in the current period)
• Risk of regional and demand-source concentration in overseas orders