BROTHER INDUSTRIES, LTD.
6448・Prime Market・Electric Appliances
Business
Brother Industries traces its origins to a sewing machine repair business founded in 1908, and has a history of over 115 years as a globally diversified enterprise. Its revenue base is the Printing & Solutions Business, which offers printers, multifunction devices, and Labeling Products worldwide, complemented by Industrial Coding & Marking Equipment (Domino), machine tools and Industrial Sewing Machines (Machinery), Gear Reducers and Gears (Nissei), and Home Sewing Machines (Personal & Home). The company has production, sales, service, and development bases in over 40 countries and regions, providing products and services to a wide range of customers from SOHO and SMBs to large manufacturing enterprises. Revenue for FY2026 (ending March 2026) was ¥893,464 million.
Business Model
Printers, multifunction devices, and Labeling Products have a recurring revenue structure in which consumables such as ink, toner, and tape are purchased continuously after the initial sale of the product unit. Industrial Coding & Marking Equipment (Domino) similarly generates stable revenue through consumable sales (ink, solvent, etc.) and after-sales service following equipment sales. Industrial equipment such as machine tools and Industrial Sewing Machines is mainly BtoB capital equipment sales. The group invested ¥50,828 million in R&D overall, maintaining product differentiation and pricing power through proprietary technology.
Company Strengths
In the Printing & Solutions Business (revenue of ¥570,583 million), sales of consumables such as ink and toner performed steadily, aided by pricing measures. In the Domino Business as well, consumables (ink, solvent, etc.) remained firm, supporting the majority of the Industrial Printing Business's revenue of ¥139,291 million. The structure whereby recurring revenue accumulates after the sale of the main product underpins the stability of business performance.
The company operates production, sales, service, and development sites in more than 40 countries and regions. It has manufacturing bases in the UK, Malaysia, Vietnam, the Philippines, China, Slovakia, and elsewhere, and has established sales subsidiaries in the US, Europe, and Asia. In December 2024, it began machine tool production in India, and has newly established or expanded technology centers in India, Japan, and Germany, continuously strengthening its network of sales and service bases in key regions.
As of the end of FY2026 (ending March 2026), the company held an issuer rating of A+ (Stable) from the Rating and Investment Information, Inc. (R&I). Interest-bearing debt is extremely limited, with short-term borrowings of ¥391 million and long-term borrowings of ¥400 million, while cash and cash equivalents stood at ¥197,674 million (approximately three months' worth of revenue). Operating cash flow generated ¥111,001 million, giving the company a financial foundation capable of funding growth investments, including M&A, and active shareholder returns from its own resources.
ENVALITH's Perspective
Performance Trend
Revenue reached ¥893,464 million (+5.3% year on year), operating profit reached ¥77,868 million (+15.0% year on year), and profit attributable to owners of parent reached ¥67,624 million (+23.5% year on year), achieving higher revenue and profit across all metrics. The operating margin improved to 8.7% from 8.0% in the previous fiscal year. Although this falls short of the operating profit of ¥85,501 million recorded in FY2022 (ended March 2022), it represents a clear recovery trajectory from the slump seen in FY2023 (ended March 2023) and FY2024 (ended March 2024) (¥55,378 million and ¥49,792 million, respectively). As an external factor, the depreciation of the yen (average EUR rate of ¥174.54 versus ¥163.62 in the previous fiscal year) made a positive contribution to revenue and profit. The increased burden from US tariffs was absorbed through price adjustments and expense control. For FY2027 (ending March 2027), the company forecasts revenue of ¥910,000 million and operating profit of ¥85,000 million, based on exchange rate assumptions of ¥150 to the US dollar and ¥180 to the euro.
Growth Strategy
Accelerating focused investment in industrial domains and business portfolio transformation under CS B2027
Communications & Printing Equipment and Labeling Products are positioned as "growth businesses," with continued expansion of consumables revenue and price pass-through. In FY2026 (ending March 2026), revenue reached ¥570,583 million (up 4.7% year on year) and business segment profit reached ¥66,446 million (up 9.0% year on year), maintaining its contribution as a core earnings driver.
Industrial Equipment (Machine Tools) for the automotive and general machinery markets, centered on China and Asia, is positioned as a "growth business" under CS B2027, with aggressive investment including M&A. In FY2026 (ending March 2026), revenue from Industrial Equipment (Machine Tools) rose significantly to ¥64,296 million (up 35.9% year on year), and business segment profit sharply recovered to ¥6,703 million (up 529.5% year on year).
Domino's consumables revenue remained solid (revenue of ¥125,326 million, up 5.0% year on year), but deteriorating competitive conditions in industrial printers led to a sharp decline in business segment profit to ¥2,913 million (down 44.3% year on year). An impairment of fixed assets related to industrial printers was also recorded, indicating that the recovery in profitability remains only partially achieved.
Transferred 70% of shares in the Network & Contents Business (Exing) to U-NEXT HOLDINGS for ¥17,500 million (completed April 2026). Committed to a total of ¥60.0 billion in share buybacks during the CS B2027 period, executing ¥18,456 million in FY2026 (ending March 2026). In May 2026, resolved an additional share buyback with an upper limit of ¥20,000 million, and also decided to retire 7,307,400 treasury shares.
Last updated: July 19, 2026