Taihei Machinery Works,Limited
6342・Standard Market・Machinery
Business
TAIHEI Machinery & Engineering Co., Ltd. is a specialist manufacturer of wood processing machinery founded in 1925, listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange. The business consists of three segments: the Plywood Machinery Business (head office plant, Komaki), the Woodworking Machinery Business (Osaka plant), and the Residential Building Materials Business (subsidiary, TAIHEI HOUSING CO., LTD.). Major customers are plywood and laminated wood manufacturers and timber processors, and the company supplies products both domestically and overseas. In April 2025, the company established a U.S. subsidiary, TAIHEI MACHINERY US Inc., beginning full-scale expansion into the North American market. Under the management policy of "making the most of wood," the company is promoting technology development to address carbon neutrality and labor-saving needs.
Business Model
The Plywood Machinery Business and Woodworking Machinery Business operate on a build-to-order model driven by customers' capital expenditure needs; for large-scale projects, revenue is recognized under the percentage-of-completion method while receiving advance payments. The Residential Building Materials Business manufactures and sells two-by-four panels and undertakes structural frame construction work. Annual R&D expenditure of ¥275 million is invested in continuous improvement of existing machines and development of new models for new building materials, maintaining technical differentiation and sustaining or improving order unit prices.
Company Strengths
The company began manufacturing and selling plywood machinery in 1927 and has accumulated technology for approximately 100 years. Its flagship machines, including accordion presses, roll-jet dryers, and Artesa (grinders), have a track record of adoption both domestically and internationally. Orders received in the Plywood Machinery Business for FY2026 (ending March 2026) recovered sharply to ¥4,006 million (up 137.8% year on year), and this high level of technical reliability underpins the order base.
In FY2026 (ending March 2026), the Woodworking Machinery Business achieved net sales of ¥2,201 million (up 28.3% year on year), operating profit of ¥288 million (up 10.2% year on year), and an operating margin of 13.1%. The new product T-Scanner W (Scanner Device) received the Technical Excellence Award at the Japan Woodworking Machinery Fair 2025, and proprietary technologies such as the scanner and Finger Jointer / Finger Joint Line systems underpin the business's high profitability.
At the end of FY2026 (ending March 2026), net assets stood at ¥7,241 million, with liabilities of only ¥2,314 million against total assets of ¥9,556 million. Surplus funds are invested in highly safe financial instruments such as jointly managed designated money in trust, giving the company a financial structure that allows it to fund capital expenditures for its new plant rebuilding plan (with ¥895 million already recorded as construction in progress) and commercialization of new models entirely with its own funds.
ENVALITH's Perspective
Performance Trend
Revenue expanded rapidly from ¥4,938 million in FY2022 to ¥6,438 million in FY2023 to ¥8,843 million in FY2024, but then declined for two consecutive periods to ¥7,856 million in FY2025 and ¥6,359 million in FY2026. The main cause was a pullback from the large orders received in the prior period in the Plywood Machinery Business (large-scale overseas projects and major maintenance work on existing domestic equipment). The operating profit margin also continued to decline, from 16.2% in FY2024 to 11.6% in FY2025 to 9.0% in FY2026. As external factors, a decline in new housing starts affected the Residential Building Materials Business, while the yen's depreciation trend and uncertainty over U.S. trade policy affected export profitability. On the other hand, orders received in the Plywood Machinery Business have rebounded sharply to ¥4,006 million (up 137.8% year on year), and the company forecasts a recovery to revenue of ¥6,805 million and operating profit of ¥687 million in FY2027 (ending March 2027).
Growth Strategy
Aiming for sustainable growth through three pillars: U.S. market development, new building material technology development, and expansion of woodworking machinery sales
Established a U.S. subsidiary in FY2026 (ending March 2026) and brought it into consolidation. Strengthened PR and order-taking activities for flagship machines through exhibitions such as LIGNA Hannover (Germany) and the APA-hosted trade show (U.S.). North American sales in FY2026 (ending March 2026) were ¥749 million (down from ¥1,283 million in the previous period), and raising brand awareness of the base and securing orders remain the next challenges.
Focused on technology development for machinery that can efficiently produce CLP (Cross Layered Plywood) and LVL (Laminated Veneer Lumber) for mid- and high-rise wooden construction in the non-residential sector. Aiming to establish a next-generation product line, backed by favorable market conditions driven by growing demand for wood-based building materials as a climate change countermeasure.
Leveraging the robust order environment for machinery used in laminated lumber production lines, accelerated sales expansion of the T-Scanner W (Scanner Device), which received the Technical Excellence Award at the 2025 Japan Woodworking Machinery Exhibition. In FY2026 (ending March 2026), orders in the Woodworking Machinery Business decreased to ¥1,176 million (52.6% of the previous period), making the buildup of orders for the next period a challenge.
Began selling Wooden Vinyl Greenhouses for Agriculture with wooden frame structures, and are promoting the development and rollout of new agricultural materials utilizing wood-based materials. Together with cost reduction measures in the Residential Building Materials Business, aiming to stabilize the profitability of this business. Achieved a turnaround to profitability in FY2026 (ending March 2026), with operating profit of ¥32 million.
Last updated: July 19, 2026