ENVALITH
株式会社モリタホールディングス logo

MORITA HOLDINGS CORPORATION

6455・Prime Market・Transportation Equipment

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株式会社モリタホールディングス logo
MORITA HOLDINGS CORPORATION6455

Business

Morita Holdings Corporation is a specialized holding company founded in 1907, operating in the fire-fighting, disaster prevention, and environmental fields. Comprising 17 subsidiaries and 3 affiliated companies, it operates four segments: Fire Trucks & Vehicles (approximately 61% of sales composition), Disaster Prevention Business (approximately 21%), Environmental Vehicles Business (approximately 12%), and Industrial Machinery Business (approximately 6%). Its main customers are domestic municipalities (fire departments and local governments), with the manufacture and sale of products for public infrastructure as its core business. The company owns BRONTO SKYLIFT OY AB of Finland as a subsidiary and is also promoting overseas expansion. It transitioned to the Prime Market of the Tokyo Stock Exchange in 2022, and consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥116,596 million.

Business Model

Fire Trucks & Vehicles and Environmental Vehicles adopt an order-based production model originating from orders placed by local governments, with the order backlog (¥71,591 million at the end of FY2026 (ending March 2026)) serving as a leading indicator of future sales. The Disaster Prevention Business combines forecast-based production of Fire Extinguishers and similar products with fire equipment installation work, while the Industrial Machinery Business has a composite revenue structure that adds parts and maintenance revenue on top of product sales. The group's overall operating margin reached 13.3% (FY2026, ending March 2026), exceeding the medium-term management plan target of 12%.

Company Strengths

In FY2026 (ending March 2026), the order backlog for Fire Trucks & Vehicles rose to ¥48,214 million (up 9.1% year on year), while that for Environmental Vehicles increased to ¥12,354 million (up 11.5% year on year), bringing the group's total order backlog to ¥71,591 million (up 5.8% year on year), a record-high level. The build-to-order model provides high visibility into future sales, serving as a structural strength that underpins the stability of earnings.

In the final year (FY2026, ending March 2026) of the medium-term management plan "Morita Reborn 2025," the company achieved an operating margin of 13.3% (against a target of 12%) and a DOE of 3.0% (against a target of 2.5% or higher). Operating profit of ¥15,456 million marked a new record high. The Disaster Prevention Business achieved a segment profit margin of 20.2%, demonstrating the high profitability of the group as a whole.

In 2023, the company developed Japan's first EV fire pumper truck, and in FY2026 (ending March 2026) completed a mass-production model "EV Pump Unit." The unit also complies with the European EN standard and was unveiled as the world's first mass-production model at INTERSCHUTZ 2026 (Hannover, Germany). The company was also selected for a public research program by the Fire and Disaster Management Agency of the Ministry of Internal Affairs and Communications to develop firefighting drones. R&D spending of ¥2,618 million underpins this technological development capability, which is a source of competitive advantage.

ENVALITH's Perspective

For FY2026 (ending March 2026), the company achieved record highs in revenue, operating income, and ordinary income, reached the 12% operating margin target, and achieved DOE of 2.5% or higher, clearing all numerical targets in the mid-term management plan "Morita Reborn 2025" — a highly commendable achievement. On the other hand, the FY2027 (ending March 2027) forecast calls for revenue of ¥115,500 million (down 0.9% year on year) and operating income of ¥14,500 million (down 6.2% year on year), indicating an outlook of lower revenue and lower profit. Clarification of growth targets in the next mid-term plan and the presentation of new profit growth drivers will be a key focus for investors.

In FY2026 (ending March 2026), revenue in the Disaster Prevention Business declined 6.2% due to the falloff of large-scale Fire Extinguishing Equipment projects recorded in the prior period. The risk of revenue fluctuation stemming from dependence on large-scale projects is a structural issue for this business. In addition, losses on equity-method investments expanded from ¥581 million in the prior period to ¥1,076 million, requiring continued monitoring of the business performance of equity-method affiliates as a factor weighing on ordinary income. External factors such as geopolitical risk and rising prices and interest rates are also increasing uncertainty regarding business performance.

Cash flow from operating activities in FY2026 (ending March 2026) decreased substantially to ¥4,787 million from ¥11,391 million in the prior period. The main causes were an increase in inventories (¥3,572 million), a decrease in trade payables (¥3,911 million), and an increase in income tax payments (¥5,567 million). The increase in work-in-progress and raw materials accompanying the buildup of order backlog can be interpreted as advance investment for future sales, but attention should be paid to the fact that continued expansion of working capital could become a factor pressuring free cash flow.

Growth Strategy

Focus is on formulating the next mid-term management plan following completion of "Morita Reborn 2025", alongside next-generation product development and overseas expansion

All three numerical targets—operating margin of 12%, DOE of 2.5% or higher, and a record-high operating profit—were achieved in FY2026 (ending March 2026), the final year of the plan. The company completed the strengthening of its group-wide earnings base and the execution of its shareholder return policy.

Development and demonstration of next-generation products such as EV Fire Pumper Trucks and the AI-based On-site Command Support System are underway. R&D expenses expanded to ¥2,617 million in FY2026 (up 10.0% from ¥2,380 million in the prior period), although the contribution to earnings remains undetermined at this time.

Goodwill in the Fire Trucks & Vehicles segment was fully amortized in FY2026 (ending balance reduced to zero). The annual amortization burden of approximately ¥591 million has been eliminated, and a profit-boosting effect is expected from FY2027 (ending March 2027) onward.

Under a dividend policy targeting a DOE of 2.5% or higher, the annual dividend for FY2026 (ending March 2026) was set at ¥64 per share (an increase from ¥58 in the prior period). An annual dividend of ¥64 is also planned for FY2027 (ending March 2027), and the company intends to continue total shareholder returns combining this with share buybacks (¥4,663 million in the current period).

In the Environmental Vehicles Business, overseas expansion continues through the Chinese subsidiary (Nanjing Chenguang Morita Environmental Protection Technology Co., Ltd.). Expansion into overseas markets is also being pursued for Fire Trucks & Vehicles, and the company has indicated that it will consider adopting IFRS depending on the trend in the overseas sales ratio.

Last updated: July 19, 2026