ISEKI&CO., LTD.
6310・Prime Market・Machinery
Business
ISEKI & CO., LTD. was founded in 1926 and marked its 100th anniversary in 2025 as a comprehensive, specialized manufacturer of agricultural machinery. Its core business is the development, manufacturing, and sale of agricultural machinery such as tractors, rice transplanters, and combine harvesters related to rice cultivation, vegetable farming, and other agricultural applications. In Japan, the company maintains a sales network through ISEKI Japan (which integrated seven sales companies in January 2025). Overseas, it operates consolidated subsidiaries in France, Germany, the United Kingdom, Thailand, and Indonesia, giving it a business foundation in the European and Asian markets as well. The company operates as a single segment, Agriculture-related Business (ISEKI & CO., LTD. - Single Segment), with consolidated net sales of ¥185,770 million for the fiscal year ended December 2025. Amid growing concern over food security, the social importance of the company as an essential business is being reaffirmed.
Business Model
The company develops and manufactures agricultural machinery in-house within its group, and sells through domestic sales companies, overseas subsidiaries, and local distributors under a vertically integrated model. In addition to product sales such as Land Preparation Machinery (Tractors, Tillers, etc.) (¥64,322 million) and Harvesting & Processing Machinery (Combine Harvesters, etc.) (¥20,104 million), Implements, Repair Parts & Repair Revenue (¥60,809 million) accounts for approximately 33% of total sales as stable maintenance revenue, forming a core pillar of earnings. Improved asset efficiency through price revision effects and inventory reduction has also contributed to enhanced profitability.
Company Strengths
In the Japan Patent Office's 'Annual Report on Patent Administration', the company maintained the No. 2 position in the number of registrations by field in the agricultural/marine and other special machinery field for FY2024. The patent grant rate also remained at a high level of 96.7% (FY2024). Invention proposals related to advanced technologies such as automation and electrification have increased to approximately 60% of the total, and the technological foundation continues to be strengthened.
In FY2025 (ending December 2025), Implements, Repair Parts & Repair Revenue reached ¥60,809 million (up 18.8% year on year), accounting for approximately 33% of total sales, functioning as a stable revenue source that mitigates the cyclicality of agricultural machinery sales. Domestic maintenance revenue was particularly robust at ¥53,529 million (up 20.9% year on year), and the launch of ISEKI Japan is expected to further contribute to earnings through improved inventory and logistics efficiency.
The company operates consolidated subsidiaries in France (ISEKI France S.A.S.), Germany (Iseki-Maschinen GmbH), the United Kingdom (ISEKI UK & Ireland Limited, consolidated in January 2025), Thailand (IST Farm Machinery), and Indonesia (PT.ISEKI INDONESIA). Overseas sales in FY2025 (ending December 2025) were ¥56,318 million (up 1.7% year on year), and the company is pursuing synergy creation through collaboration among its three European subsidiaries as well as new market development in the Middle East and Africa.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years shows a gradual expansion trend, from ¥158,192 million (FY2021) to ¥185,770 million (FY2025). Operating profit was sluggish at ¥2,253 million in FY2023 and ¥1,920 million in FY2024, but recovered to ¥4,225 million in FY2025. In Q1 of FY2026 (ending December 2026), revenue reached ¥51,471 million (up 11.5% year on year) and operating profit reached ¥2,603 million (up 88.5% year on year), indicating acceleration. This reflects a synergy between robust domestic agricultural machinery demand (an external factor, as farmers' equipment replacement demand continues) and the effects of price revisions and Project Z (internal factors). The full-year forecast remains unchanged at revenue of ¥180,000 million (down 3.1% year on year) and operating profit of ¥6,000 million (up 42.0% year on year).
Growth Strategy
Parallel execution of structural reform completion under Project Z and growth investment in domestic large-scale machinery and overseas Europe/Asia markets
Profitability structure reform based on three pillars: production optimization, development optimization, and deepening of domestic sales. In the first quarter of FY2026 (ending December 2026), capital expenditure of ¥2,563 million was executed, with effects manifesting in a substantial increase in operating profit (up 88.5% year-on-year). This is the main driver behind the full-year operating profit forecast increase of 42.0%.
Inventory reduction and improved sales efficiency through ISEKI Japan (a sales company integrating 7 companies), together with continued expansion of maintenance revenue leveraging the existing customer base. Domestic maintenance revenue in the first quarter of FY2026 (ending December 2026) continued to grow steadily, up 16.9% year-on-year.
Expansion of sales of Land Preparation Machinery (Tractors, Tillers, etc.) and implements, centered on Europe, along with strengthening of local sales networks. Overseas sales in the first quarter of FY2026 (ending December 2026) reached ¥22,859 million (up 15.9% year-on-year), achieving a growth rate exceeding that of the domestic market. Overseas Other Agriculture-related (Facility Construction, Landscaping, etc.) also achieved high growth of 26.9% year-on-year.
The annual dividend is set to increase from ¥40 in FY2025 (ending December 2025) to a forecast of ¥45 in FY2026 (ending December 2026), up 12.5% year-on-year. This reflects a strengthened shareholder return policy underpinned by earnings recovery. No revision from the most recently announced forecast.
Last updated: July 17, 2026