Ishikawa Seisakusho, Ltd.
6208・Standard Market・Machinery
Business
Ishikawa Seisakusho Co., Ltd. was founded in 1921 and is a manufacturing group based in Hakusan City, Ishikawa Prefecture. The group consists of five companies in total: the Company itself, its three consolidated subsidiaries (Kanto Kouki Co., Ltd., Issei Co., Ltd., and Ishimex Co., Ltd.), and Rengo Co., Ltd. The business is organized into four segments: "Defense Equipment" (Naval Mines, Avionics Equipment, etc.), "Paper Converting Machinery" (Corrugated Carton Box-Making & Printing Machinery, etc.), "Contract Manufacturing" (Contract Manufacturing of Various Machinery), and "Other" (Electronic Equipment, Textile Machinery, etc.). Major customers are the Ministry of Defense (52.2% of net sales) and Mitsubishi Heavy Industries, Ltd. (16.6% of net sales), with the Defense Equipment segment serving as the core business, accounting for approximately 76.8% of net sales of ¥18,473 million.
Business Model
In the Defense Equipment segment, the company records stable revenue centered on long-term contract-type products transferred over a certain period (FY2026 (ending March 2026) revenue recognized: ¥8,356 million, up 32.3% year on year), through continuous business with the Ministry of Defense, Mitsubishi Heavy Industries, Ltd., and others. In Paper Converting Machinery, the company sells equipment to the corrugated carton and paper converting industries, including Rengo Co., Ltd. Within the group, Issei Co., Ltd. manufactures machined parts, while Ishimex Co., Ltd. manufactures control panels and other electrical components, enhancing production efficiency through a division-of-labor system. Fund procurement relies mainly on borrowings from financial institutions.
Company Strengths
In FY2026 (ending March 2026), sales to the Ministry of Defense were ¥9,650 million (52.2% of net sales) and sales to Mitsubishi Heavy Industries, Ltd. were ¥3,063 million (16.6% of net sales), indicating a high degree of dependence on these two major customers, with whom continuous business relationships have been established. The order backlog at fiscal year-end stood at a high level of ¥23,011 million (Defense Equipment segment alone), providing high visibility into medium-term sales recognition.
Net sales in the Defense Equipment segment were ¥14,190 million (up 27.9% year on year), segment profit was ¥2,100 million (up 61.4% year on year), and the segment profit margin was 14.8% (improved from 11.7% in the previous fiscal year). The fixed-cost absorption effect accompanying the increase in net sales has become evident, and the expansion of sales recognition from long-term contract products has contributed to improved profitability.
Founded in 1921, the company obtained a business license for defense equipment manufacturing in 1954, and has accumulated over 70 years of manufacturing track record in Naval Mines, Avionics Equipment, and other products. A business license is required to manufacture Defense Equipment, which functions as a barrier to entry. The company invested a total of ¥399 million in research and development, comprising ¥205 million for Defense Equipment and ¥194 million for Paper Converting Machinery, and continues R&D activities in close collaboration with the Ministry of Defense.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥12,080 million in FY2022 (ended March 2022) to ¥18,473 million in FY2026 (ending March 2026), a CAGR of approximately 11%. Operating profit expanded roughly 7.2-fold, from ¥181 million in FY2022 to ¥1,306 million in FY2026, with particularly sharp acceleration over the two years FY2025 and FY2026. The main driver was the Defense Equipment segment, whose revenue rose 27.9% year on year to ¥14,190 million. As an external tailwind, expanded procurement under the government's increased defense spending policy has provided support. On the other hand, orders received fell sharply to ¥13,735 million (down 35.5% year on year), indicating that the backlog is now being worked down. The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥19,000 million (up 2.9% year on year) and operating profit of ¥1,000 million (down 23.5% year on year), representing higher revenue but lower profit.
Growth Strategy
Steady conversion of the Defense Equipment order backlog into revenue, combined with cost reduction and stable dividends, to enhance corporate value
Against a backdrop of a high order backlog, the company continues to promote revenue recognition for long-term contract products (goods transferred over a certain period). Revenue of ¥8,356 million was recognized in FY2026 (ending March 2026), up 32.3% year on year. For FY2027 (ending March 2026), revenue of ¥19,000 million is planned, with Defense Equipment expected to continue driving growth.
The company continues to promote margin improvement through manufacturing process efficiency and cost reduction. The operating margin for FY2026 (ending March 2026) improved significantly to 7.1% (from 4.3% in the prior period). For FY2027 (ending March 2026), operating profit of ¥1,000 million is planned amid a narrowing pace of revenue growth, making continued cost management a key challenge.
A trust-type stock compensation plan approved at the Annual General Meeting of Shareholders in June 2025 has been introduced. This aims to strengthen the link between director compensation and share value, raising awareness of medium- to long-term performance improvement and corporate value enhancement. During the fiscal year under review, the company acquired ¥245 million (141,500 shares) of treasury stock to launch the plan.
The annual dividend per share for FY2026 (ending March 2026) is ¥20 (double the ¥10 of the prior period), with a payout ratio of 19.7%. For FY2027 (ending March 2026), a dividend of ¥20 per share (payout ratio of 19.6%) is planned, aiming to stabilize shareholder returns in line with profit growth.
Last updated: July 19, 2026