JUKI CORPORATION
6440・Prime Market・Machinery
Business
JUKI Corporation, founded in 1938, is a precision machinery manufacturer listed on the Prime Market of the Tokyo Stock Exchange. Its core Sewing Business manufactures and sells Industrial Sewing Machines, Household Sewing Machines, and IoT-related Systems, while its Industrial Machinery Business manufactures and sells SMT mounters and Contract Processing Products & Parts. The group consists of the company, 24 subsidiaries, and 3 affiliates, with operations spanning global markets including Asia, Europe, the Americas, the Middle East, and India. Consolidated net sales for FY2025 (ending December 2025) totaled ¥88,761 million, with the Sewing Business accounting for approximately 75% of sales. Major customers include sewing factories in the apparel and automotive-related sectors (100 companies globally) and electronic equipment manufacturers, and the company seeks differentiation through solution proposals leveraging IoT integration.
Business Model
In the Sewing Business, in addition to sales of industrial and household sewing machine units, the company integrates its parts, service, systems, and automation divisions to pursue high-value-added revenue by providing IoT-integrated solutions to high-end customers. The Industrial Machinery Business has two pillars—Mounters sales and contract processing—with the contract processing business currently shifting toward a profit-focused model. Fund procurement is based primarily on internal funds and borrowings from financial institutions, and in the fiscal year ended December 2025, the company also utilized a sale-and-leaseback of its head office building.
Company Strengths
Since its founding in 1938, the company has a track record in industrial sewing machines, including receiving the Deming Prize in 1981. As of the end of FY2025 (ended December 2025), the total number of industrial property rights (patents and design rights) held domestically and internationally stood at 1,420. The latest model, the "DX-01," adopts the world's first "6-belt feed assist mechanism" and won the Innovation Awards at Texprocess Americas 2025, maintaining the company's technological superiority.
In FY2025 (ended December 2025), operating profit in the Sewing Business segment expanded sharply to ¥5,010 million (approximately 4.6x the previous fiscal year). A strategic shift toward the high-end market (global top 100 companies) and optimization of production capacity through model reduction pushed up the gross profit margin. On an ordinary profit basis, the segment posted ¥3,231 million, turning profitable from an ordinary loss of ¥710 million in the previous fiscal year.
Cash flow from operating activities in FY2025 (ended December 2025) was ¥11,712 million (up from ¥9,371 million in the previous fiscal year). Reductions in inventory and accounts receivable continued from the first half, and together with proceeds from the sale of investment securities and other items, the company also secured income of ¥4,364 million from investing activities. While covering ¥16,145 million in loan repayments under financing activities, the company continued to strengthen its financial foundation.
ENVALITH's Perspective
Performance Trend
Revenue has continued to trend downward over the past five fiscal years since peaking at ¥117,454 million in FY2022, with Q1 FY2026 (¥20,682 million, down 9.9% year-on-year) also reflecting a declining revenue trend. On the profit side, however, the effects of structural reforms are becoming evident: the company turned from operating losses in FY2023–FY2024 to an operating profit of ¥2,662 million in FY2025, and in Q1 FY2026 secured an operating profit of ¥399 million through a significant improvement in the cost-of-sales ratio (from 74.9% to 70.9%). The ordinary loss continued at ¥342 million due to an increase in interest expenses paid (from ¥421 million to ¥493 million), but this represented a substantial improvement from the ¥1,035 million loss recorded in the same period of the previous year. Profit attributable to owners of parent was ¥37 million, turning positive on the back of a gain on sale of cross-shareholdings (¥404 million). The full-year forecast remains unchanged at revenue of ¥90,000 million (up 1.4% year-on-year) and operating profit of ¥4,500 million (up 69.0% year-on-year).
Growth Strategy
Aiming for sustainable profit growth through deepening profitability in the Sewing and Industrial Machinery businesses and strengthening cost competitiveness
Under a policy shift from "revenue emphasis" to "profit emphasis," the company is pursuing concentration on high-value-added products and optimizing production capacity through model lineup reduction. The Sewing Business operating margin improved to 3.2% in 1Q FY2026 (ending March 2026) (versus 1.4% in the same period of the prior year), supported by continued strength in demand from automotive-related customers in Europe and the US. The company plans to accelerate the review of its marketing strategy and strengthen cost competitiveness.
Major structural reforms were largely completed during 2025. The contract processing business has achieved stable profitability (operating margin of 5.7% in 1Q FY2026, ending March 2026). While the Industrial Equipment Business continues to face delayed recovery in China and the Americas, the company is pursuing a global niche strategy focused on priority segments and regions, and is working to achieve early profitability by capturing the benefits of organizational restructuring and optimization of factory scale.
The company continues to sell policy-held shares on an ongoing basis (recording a gain on sale of investment securities of ¥404 million in 1Q FY2026, ending March 2026). Proceeds from the sales are being applied to reduce interest-bearing debt, lowering financial leverage. The annual dividend forecast for FY2026 (ending December 2026) is ¥15 per share (an increase from ¥10 in the previous fiscal year). The company also conducted share buybacks (284,300 shares for ¥199 million in 1Q FY2026, ending March 2026).
As part of the ongoing efforts under the new medium-term management plan, the company is accelerating the strengthening of cost competitiveness through measures such as reviewing its marketing strategy and optimizing production capacity. It also aims to promote the establishment of the new strategy in the Industrial Equipment Business, maintaining its long-term policy of targeting an ROE of 23%.
Last updated: July 17, 2026