SAKAI HEAVY INDUSTRIES,LTD.
6358・Prime Market・Machinery
Japan
Core domestic manufacturing and sales segment, accounting for approximately 70% of group revenue
| Period | Current | Previous | Change |
|---|---|---|---|
| Total revenue | ¥19,973 million | ¥19,847 million | ↑ |
| Operating profit | ¥190 million | ¥165 million | ↑ |
| Segment assets | ¥28,504 million | ¥28,071 million | ↑ |
| Depreciation and amortization | ¥491 million | ¥473 million | ↑ |
| Capital expenditures | ¥398 million | ¥277 million | ↑ |
Business Details
A domestic segment centered on Sakai Heavy Industries, Ltd. (the Company). In addition to manufacturing and selling Road Paving Machinery (Rollers, etc.), Road Maintenance & Repair Machinery, and Industrial Machinery, the segment also handles contracted road paving/repair construction work and the purchase and sale of Used Construction Machinery. Beyond sales to the domestic market, it also exports products and parts to overseas group companies, fulfilling its role as the manufacturing base for the entire group. In FY2026 (ending March 2026), domestic sales bottomed out, while exports to group companies declined due to inventory adjustments.
Recent Overview
Domestic sales bottomed out, leading to higher revenue and profit, though declining exports to group companies weighed on results
In the Japan segment for FY2026 (ending March 2026), domestic sales bottomed out due to solid government construction investment backed by national resilience enhancement measures and the completion of distribution inventory adjustments, resulting in total revenue of ¥19,973 million, up 0.6% year on year. Operating profit improved to ¥190 million, up 14.7% year on year, due to an improved cost ratio, among other factors. On the other hand, a decline in exports of products and parts to group companies associated with inventory adjustments constrained the extent of the revenue increase. Capital expenditures showed an aggressive investment stance, rising 43.7% year on year to ¥398 million.
Key Products
Growth Drivers
- Sustained high level of government construction investment through accelerated national resilience enhancement measures and the formulation of a new medium-term national resilience implementation plan
- Construction site DX demand associated with the promotion of i-Construction 2.0 (commercialization of businesses such as the Autonomous Roller & Compaction Management System)
- Recovery in domestic roller demand once the rental industry's inventory adjustment runs its course (a business structure requiring repeat investment)
- Higher rental rates through improved roller usage fees stemming from the FY2024 (Reiwa 6) revision of construction machinery usage fee rates
- Recovery in exports of products and parts to overseas group company sites (progress in inventory adjustments and supply chain corrections)
- Progress in revenue structure reform through pricing strategy and higher value-added offerings (improved cost ratio contributing to higher operating profit)
Risks
- Risk of continued decline in exports of products and parts to group companies due to inventory adjustments (internal sales revenue also declined year on year in the current period)
- Continued weakness in domestic sales of Road Maintenance & Repair Machinery
- Downward pressure on group overseas export demand due to geopolitical risks such as US high tariff policy
- Risk of deteriorating revenue structure due to rising procurement costs
- Risk of surging energy and raw material prices amid global order turmoil and prolonged Middle East crisis
Last updated: June 25, 2026