ENVALITH
株式会社竹内製作所 logo

TAKEUCHI MFG.CO.,LTD.

6432・Prime Market・Machinery

Official website
株式会社竹内製作所 logo
TAKEUCHI MFG.CO.,LTD.6432

Business

Takeuchi Mfg. Co., Ltd. was founded in 1963, and has grown as a specialized manufacturer of compact construction machinery since it developed the Mini Excavator in-house in 1971. Its main product categories are the three groups of Mini Excavator, Hydraulic Excavator, and Crawler Loader, and it operates through a five-company structure: Japan (development and manufacturing), the United States, the United Kingdom, and France (sales), and China (parts manufacturing). North America accounts for approximately 56% of sales and Europe for approximately 41%, with housing construction, living infrastructure development, and public/private construction investment as the main sources of demand. The company also provides OEM supply domestically, and is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The Japan head office centrally manages product development and manufacturing, wholesaling to local rental companies and dealers through sales subsidiaries in the United States, United Kingdom, and France. In some regions of Europe, direct sales are also conducted via distributors. Crawler Loaders are produced through semi-knockdown manufacturing at the U.S. plant. Aftermarket Parts (Genuine Parts) sales following the initial sale (equivalent to ¥17.3 billion in actual results for FY2025 (ended February 2025)) contribute to revenue stability, and the company aims to expand recurring revenue through genuine parts appeals and proposals for extended warranty periods.

Company Strengths

Achieved an operating margin of 16.6% in FY2024 (ending February 2024) and 17.4% in FY2025 (ending February 2025). Even as unit sales volume declined 11.8% year on year, price increases and yen depreciation effects enabled the company to secure record-high net sales of ¥213,230 million and operating profit of ¥37,142 million. The company also maintains a no-debt management policy (zero outstanding borrowings at fiscal year-end), underscoring its financial soundness.

In September 2022, the company began semi-knockdown production of Crawler Loaders at its South Carolina plant in the United States, and in September 2023 brought the Aoki plant (4-9 ton class excavators) online, expanding production capacity to approximately 1.5 times the previous level. In July 2024, the company launched the wheeled Hydraulic Excavator "TB370W" to market, further broadening its product lineup.

In FY2025 (ending February 2025), the top sales destinations were HUPPENKOTHEN GmbH & Co KG (¥27,694 million, 13.0% of net sales) and United Rentals, Inc. (¥27,145 million, 12.7% of net sales). In North America, the company has built a dealer network of 280 locations, supporting the United States Segment's net sales of ¥128,711 million (the largest within the group) through a stable sales channel.

ENVALITH's Perspective

In Q1 of FY2027 (ending February 2027), despite a ¥1,873 million profit-reducing factor from US tariffs (of the ¥3,537 million increase in tariff costs, ¥1,663 million was passed through in prices), net sales increased 12.2% year on year, and quarterly net income attributable to owners of the parent came in at ¥7,429 million, up 0.2% year on year. It is commendable that, amid continued headwinds from US tariffs as an external factor, the company was able to absorb the impact through price pass-through and increased unit sales. That said, operating profit declined 9.3% year on year to ¥9,975 million, and the decline in profitability cannot be denied.

The full-year forecast for FY2027 (ending February 2027) remains unchanged, with net sales of ¥244,000 million (up 8.3% year on year) and operating profit of ¥37,300 million (down 1.0% year on year). The assumed exchange rates are 1 US dollar = ¥147, 1 British pound = ¥200, and 1 euro = ¥174. External factors such as the continuation of US tariffs, increased shipping costs from surging crude oil prices, and the closure of business by the Australian distributor (resulting in Asia-Oceania unit sales falling below the prior-year level) remain sources of uncertainty for the second half. The full-year progress rate in Q1 was 23.3% for net sales and 26.7% for operating profit, which is broadly on track, but there remains a risk that the forecast could be revised downward depending on tariff developments in H2.

At the end of Q1 of FY2027 (ending February 2027), the order backlog increased by ¥3,349 million from the end of the previous fiscal year (stated in the original as ¥33,496 million) to reach ¥7,706 million (stated in the original as ¥77,064 million), and order intake, which rose 59.2% year on year including a substantial order from a major US rental company, supports the near-term sales outlook. On the other hand, the company has announced its policy to discontinue disclosure of order intake and order backlog after FY2027 (ending February 2027), and from FY2028 (ending February 2028) onward, investors will have limited means of gauging future demand, which is a concern from an information disclosure standpoint.

Growth Strategy

Aiming for revenue of ¥300,000 million through expansion of sales networks in North America and Europe, construction of a new plant, and electrification initiatives

Plan to expand the dealer network from the current 280 locations to 360 locations within three years. In Q1 of FY2027 (ending February 2027), the company secured a substantial order from a major rental company, and unit sales of both Crawler Loaders and Mini Excavators exceeded the same period of the previous year. The new model "TL11R3" (launched July 2026) also contributed to strengthening sales.

In the United Kingdom, unit sales increased year on year through the use of discount campaigns (revenue up 34.0% year on year). Price increases for European distributors were also implemented. However, unit sales to Europe in the Japan Segment fell below the same period of the previous year (due to the reversal of some distributors' inventory build-up and withdrawal from Australia), and a full-scale recovery in European demand will be necessary to achieve the target.

A new plant dedicated to Crawler Loader production is under construction on land adjacent to the Aoki Plant. Full operation is expected from FY2029 (ending February 2029) onward. Demand for Crawler Loaders in North America has remained solid, and the expansion of production capacity will form the foundation for medium-term revenue growth.

As part of electrification efforts, expansion of the battery-powered Mini Excavator lineup continues to be pursued as a priority measure. The aim is to respond to tightening environmental regulations, particularly in Europe, and to capture new demand. A battery inventory valuation loss occurred in the previous fiscal year, making market launch timing and inventory management key challenges.

In Q1 of FY2027 (ending February 2027), joint research toward the practical application of autonomous operation for construction machinery was initiated. This initiative aims to enhance product value-added and establish future competitive advantage, and is expected to contribute to strengthening medium- to long-term product competitiveness.

Promoting the expansion of Aftermarket Parts (Genuine Parts) sales through emphasizing the benefits of genuine parts and proposing extended warranty periods. This is expected to contribute to improved profit margins as a continuing source of revenue following machine sales. It is one of the priority measures under the Fourth Medium-Term Management Plan.

Last updated: July 17, 2026