TAKAMATSU MACHINERY CO., LTD.

Business Details

This segment manufactures, sells, services, and maintains machine tools and related peripheral equipment. It operates through a network of domestic and overseas subsidiaries (in the United States, Thailand, Europe, China, Indonesia, Vietnam, Mexico, etc.). Its main customers are centered on the automotive-related industry, with external demand from North America, Asia, and Europe. As the core business accounting for approximately 88% of the Group's consolidated net sales, the company established a new Machine Tools Sales Division and Production Division in April 2026 to strengthen its organizational structure.

Recent Overview

Orders received rose 11.1% year-on-year in a sign of recovery, but net sales declined 9.0% and the operating loss continued

In FY2026 (ending March 2026), orders received totaled ¥11,923 million (up 11.1% year-on-year) and the order backlog stood at ¥5,298 million (up 15.4% year-on-year), indicating improvement in leading indicators. Meanwhile, net sales came to ¥11,215 million (down 9.0% year-on-year), and the operating loss was ¥156 million (an improvement from a loss of ¥200 million in the prior period). Domestic orders increased significantly (up 21.9% year-on-year), while overseas sales declined due to lower sales to North America and Europe, causing the overseas demand ratio to fall to 37.1%. In April 2026, the company established a new Machine Tools Sales Division and Production Division to accelerate decision-making and strengthen sales and production capabilities.

Key Products

Growth Drivers

• Recovery in orders received and order backlog (orders received up 11.1% year-on-year and order backlog up 15.4% year-on-year in FY2026, ending March 2026), raising expectations for a sales recovery
• Capturing the domestic demand recovery, driven by a substantial increase in domestic orders (up 21.9% year-on-year)
• Expansion of overseas demand in Asia through the market launch of strategic models for Asia such as AT-1 (sales to Asia rose to ¥2,657 million, an increase from the prior period)
• Faster decision-making and stronger sales and production capabilities resulting from the establishment of the Machine Tools Sales Division and Production Division (April 2026)
• Higher value-added offerings through the development of new models such as multi-tasking precision lathes and process-integrated lathes, along with automation solution proposals
• Building a foundation for sustainable growth through the deepening and continuation of initiatives in the second year of the Medium-Term Plan 2027

Risks

• Delayed demand recovery indicated by the 9.0% year-on-year decline in net sales (increasingly cautious capital investment decisions, particularly in the automotive-related sector)
• Changes in exposure to overseas demand risk, reflected in the decline in the overseas demand ratio (from 40.0% to 37.1%) and lower sales to North America and Europe
• Impact on overseas demand toward North America from uncertainty in U.S. trade policy (tariffs and protectionism)
• Cost increase pressure and profit squeeze risk from prolonged yen depreciation and rising prices
• A situation in which a full recovery in the machine tools industry is taking time (increasingly cautious investment decisions, particularly among small and medium-sized enterprises)
• Impact on capital investment trends from geopolitical risk (Middle East situation and changes in international relations)