DMG MORI CO., LTD.

Business Details

Manufactures and sells machine tools including 5-axis machining centers, multi-tasking machines, horizontal and vertical machining centers, turning centers, grinding centers, and Additive Manufacturing Machines. The segment has manufacturing facilities in Japan, Europe, the United States, and China, supplying high-value-added products for growth industries such as aerospace, defense, medical, and power/energy. Under the MX (Machining Transformation) strategy, the segment promotes process consolidation, automation, and DX, contributing to improved customer productivity.

Recent Overview

Orders reached a record high on a quarterly basis, and revenue sharply recovered, up 17.3% year on year

Revenue from external customers in the Machine Tools segment for Q1 FY2026 (ending December 2026) was ¥86,364 million (versus ¥73,647 million in the same period of the prior year, up 17.3% year on year). Segment loss was -¥412 million, a significant improvement from -¥1,407 million in the same period of the prior year. Consolidated order value was ¥155,400 million, up 28.8% year on year, marking a record high on a quarterly basis. The average order value per machine rose to ¥84.2 million (versus the prior fiscal year average of ¥79.6 million). Both EMEA and the Americas saw substantial increases of approximately 30% each. The machine order backlog increased from ¥240,000 million at the end of December 2025 to ¥266,000 million at the end of March 2026. Orders for aerospace, defense, space, medical, energy, data handling, and mold-related applications performed well.

Key Products

Growth Drivers

• Continued strong order trends for aerospace, defense, medical, power/energy, and data handling applications
• Growing demand for defense-related capital investment amid expanding defense budgets by governments worldwide
• Expansion of machine tool demand driven by active investment in AI data center construction
• Improved profitability from a rise in average machine order unit price (¥84.2 million, versus the prior fiscal year average of ¥79.6 million)
• Order backlog of ¥266,000 million at the end of March 2026 (up 10.8% versus the end of December 2025), contributing to revenue growth from Q2 onward
• Balanced order acquisition between MX machines and BX (Basic) machines through renewed sales promotion of BX machines
• Improved competitiveness through the introduction of new-generation models such as the NMV 3000/5000 DCG 2nd Generation
• Recovery in orders from EMEA (up approximately 30% year on year), the Americas (up approximately 30%), and Germany
• Contribution to consolidated order value from growth in semiconductor-related orders at group companies (Magnescale, Saki Corporation)
• Strengthened automation system supply capability and shorter lead times through the renovation of the Nara plant
• Strengthened next-generation talent development and technology development through the opening of the training center at the Frontenac plant in Germany and the establishment of the MX Center at the University of Tokyo

Risks

• Risk of fluctuations in revenue and profit due to the cyclicality of machine tool demand (the Machine Tools segment continued to post a loss in Q1)
• Risk of sudden changes in capital investment demand due to geopolitical factors and shifts in the financial environment
• Risk of continued sluggish demand in the China and Asia markets
• Cost pressure from rising personnel expenses, among other factors (consolidated personnel expenses trending upward year on year)
• Increased costs to address military diversion risk and sales constraints due to tightening export regulations
• Costs to comply with the European Cyber Resilience Act (CRA, effective December 2027) and Machinery Regulation (mandatory from January 2027)
• Foreign exchange risk (assumed rates for full-year FY2026: euro at ¥180.0, US dollar at ¥150.0)
• Risk of rising supply chain costs due to changes in trade policy, including US tariff policy