KIKUKAWAENTERPRISE, INC.
6346・Standard Market・Machinery
KIKUKAWAENTERPRISE, INC. (Single Segment: Machinery Manufacturing and Sales Business)
A single-segment company engaged in the manufacturing and sale of Woodworking Machinery and Machine Tools
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year) | ¥3,859 million | ¥5,534 million | ↓ |
| Operating profit (full year) | ¥377 million | ¥1,024 million | ↓ |
| Ordinary profit (full year) | ¥470 million | ¥1,086 million | ↓ |
| Net income (full year) | ¥326 million | ¥743 million | ↓ |
| Operating margin | 9.8% | 18.5% | ↓ |
| Equity ratio (fiscal year-end) | 87.2% | 84.6% | ↑ |
| Net assets per share | ¥10,652.03 | ¥10,129.13 | ↑ |
| Net income per share | ¥268.48 | ¥613.83 | ↓ |
| Cash and cash equivalents at end of period | ¥4,538 million | ¥4,414 million | ↑ |
| Annual dividend | ¥100 | ¥180 | ↓ |
Business Details
A machinery manufacturer with a history of over 120 years since its founding, whose core business is the manufacturing and sale of Woodworking Machinery (55.4% of sales in FY2026 (ending March 2026)) and Machine Tools (44.6% of sales). Woodworking Machinery provides primary and secondary processing machines that convert logs into materials for construction and woodworking use, while Machine Tools handles metal and new material processing machines. Domestic sales are the mainstay, but the company also exports to Taiwan, South Korea, China, and other markets. It primarily operates on a made-to-order basis and adopts an individual job costing system.
Recent Overview
Decrease in both revenue (first time in 3 years) and profit (first time in 4 years) due to a substantial decline in Woodworking Machinery sales
In FY2026 (ending March 2026), net sales were ¥3,859 million (down 30.3% year on year) and operating profit was ¥377 million (down 63.1% year on year), representing a substantial deterioration in performance. Woodworking Machinery sales nearly halved from ¥4,203 million in the prior period to ¥2,139 million, while Machine Tools sales increased from ¥1,329 million to ¥1,719 million. The company promoted leveling of factory utilization rates, but this could not offset the impact of the sales decline. For FY2027 (ending March 2027), the company forecasts net sales of ¥4,500 million (up 16.6% year on year) and operating profit of ¥450 million (up 19.1% year on year). The annual dividend was reduced to ¥100 (payout ratio of 37.2%).
Key Products
Growth Drivers
- Machine Tools: Expansion of demand for data center additions driven by advances in AI, and growing investment in labor-saving and automation across various industries
- Woodworking Machinery: Expectations for expanded use of domestic timber as a renewable resource in public buildings and social infrastructure facilities
- Progress in the shift from imported to domestic timber for construction materials, and expanded use of domestic timber in non-residential construction fields (such as urban infrastructure)
- Productivity improvement and cost reduction through leveling of factory utilization rates in response to work-style reform and promotion of in-house production
- Enhancement of added value and strengthening of customer proposal capabilities through product development incorporating digital technologies such as AI utilization
Risks
- Structural contraction in demand for Woodworking Machinery due to the prolonged slump in housing starts (population decline, rising construction costs, and higher interest rates) (711,171 units in FY2025, the lowest level in 63 years since FY1962)
- Uncertainty in export demand due to changes in tariff policies and geopolitical risks in major overseas countries
- Upward cost pressure from the weaker yen and persistently high raw material, energy, and logistics costs
- Rising labor costs and impact on the production system due to worsening labor shortages
- Uncertainty about the outlook due to deteriorating order trends for Woodworking Machinery (net sales down approximately 49% year on year)
Last updated: June 25, 2026