MICRON MACHINERY CO., LTD.
6159・Standard Market・Machinery
Business
MICRON MACHINERY CO., LTD. is a specialized grinding machine manufacturer founded in 1958, handling the development, design, manufacturing, sales, and after-sales service of Centerless Grinders and Internal Grinders and their peripheral equipment on an integrated basis. Its major customers span a wide range of industries, including automotive parts, bearings, electronic information equipment, and medical tools, and the company has a track record of deliveries to more than 28 countries worldwide. It has established local subsidiaries in North America (Micron-U.S.A., Inc.), Southeast Asia (Micron Machinery (Thailand) Co., Ltd.), and China (Micron Precision Machinery (Suzhou) Co., Ltd.), building a global sales and service network. In 2020, the company was selected by the Ministry of Economy, Trade and Industry as one of the 100 Global Niche Top Companies.
Business Model
Of net sales of ¥5,782 million, grinding machines accounted for ¥4,592 million (79.4%) and replacement parts for ¥1,128 million (19.5%). Grinding machines are produced on a make-to-order basis at the head office plant in Yamagata Prefecture, and thorough cost management for each individual machine has secured a gross profit margin of 36.2%. Replacement parts function as stable, stock-type revenue generated from the base of already-installed machines, playing a role in mitigating the impact of economic fluctuations.
Company Strengths
As a company specializing in grinding machines for over 60 years since its founding, the company has continued to take on hard-to-machine areas that competitors find difficult to enter, and was selected in 2020 as one of the Ministry of Economy, Trade and Industry's 100 Global Niche Top Companies. It has received numerous technology awards, including the Machine Industry Award and the Monodzukuri Nippon Grand Award, and holds a top-class share in the industry.
In 2005, the company was selected by Caterpillar Inc. of the U.S. as a global supplier, an unusual achievement for a Japanese company. In FY2025 (ending August 2025), the company maintained sales of ¥625 million (10.8% of sales composition) to CATERPILLAR ENGINE SYSTEMS INC., underscoring its high level of global quality and supply capability.
As of the end of FY2025 (ending August 2025), the equity ratio stood at 87.4%, with cash and cash equivalents reaching ¥7,792 million. While maintaining a financial structure close to debt-free management, the company funded capital expenditures of ¥193 million and treasury stock acquisitions of ¥364 million from its own funds, demonstrating high resilience to changes in the external environment.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded from ¥4,010 million in FY2021 to ¥5,782 million in FY2025, but sharply decelerated in the cumulative nine months of Q3 FY2026 (ending August 2026) to ¥2,749 million (down 33.5% year on year). Operating profit also fell significantly to ¥30 million (down 93.3% year on year), indicating a marked decline in core earnings power. As an external factor, domestic demand for machine tools remained weak, while overseas demand stayed at a high level. Ordinary profit of ¥919 million (up 28.5% year on year) reflects a structure dependent on foreign exchange gains of ¥580 million (an external factor driven by yen depreciation). The buildup of contract liabilities to ¥1,182 million suggests a delay in product acceptance/inspection, and the full-year outcome will hinge significantly on revenue recognition in the fourth quarter. The full-year forecast anticipates a decrease in both revenue and profit compared to the previous fiscal year, with revenue of ¥5,467 million (down 5.4% year on year) and operating profit of ¥381 million (down 37.8% year on year).
Growth Strategy
Capturing external demand through the utilization of three overseas bases, and expanding technology into new industrial fields beyond automotive
Despite the uncertain international situation, external demand has remained at a high level, and market expansion continues through the utilization of three overseas bases. The core initiative is the continued capture of North American demand based on selection as a global supplier for Caterpillar. In the cumulative third quarter of FY2026 (ending March 2026), external demand remained at a high level and continues to be the primary driver of sales.
To reduce the risk of concentrated sales dependence on the automotive industry, the company is promoting the expansion of grinding technology into new industrial fields such as aerospace, construction machinery, and medical equipment. As the company operates in a single segment, detailed sales breakdowns by field are not disclosed, but stabilizing performance through customer diversification remains an ongoing medium- to long-term challenge.
Amid a significant decline in sales, the company is undertaking company-wide cost reductions, compressing cumulative third-quarter FY2026 (ending March 2026) selling, general and administrative expenses to ¥993 million (down ¥84 million year-on-year for the same quarter). The gross profit margin was maintained at 37.3%, and improvements to the profit structure through fixed cost reductions are continuing. Depreciation expense also decreased to ¥177 million (down from ¥199 million in the same quarter of the previous year), reflecting progress in the efficient use of equipment.
Last updated: July 17, 2026