MORITA HOLDINGS CORPORATION

Business Details

The Fire Trucks & Vehicles Business is centered on the manufacture and sale of fire trucks, based on demand from domestic municipalities while also expanding into overseas markets. In FY2026 (ending March 2026), sales to external customers were ¥71,689 million, accounting for approximately 61.5% of the group's total sales of ¥116,596 million, making it the largest segment. Against a backdrop of steady domestic sales, both sales and segment profit achieved substantial year-on-year increases, driving the group's renewal of its all-time high operating profit.

Recent Overview

Steady domestic sales drove a 7.9% increase in sales and a 19.5% increase in segment profit; goodwill fully amortized

In FY2026 (ending March 2026), sales of domestic fire trucks and vehicles progressed steadily, with sales increasing by ¥5,274 million year on year to ¥71,689 million (up 7.9%), and segment profit increasing by ¥1,332 million year on year to ¥8,167 million (up 19.5%). Orders received also increased to ¥73,021 million (up 2.6% year on year), and the order backlog grew to ¥48,214 million (up 9.1% from the prior fiscal year-end), providing strong visibility into future sales. In addition, goodwill attributable to the Fire Trucks & Vehicles segment was fully amortized (balance reduced to zero) at the end of the fiscal year, eliminating the future amortization burden.

Key Products

Growth Drivers

• Continued solid orders for domestic municipal fire trucks and vehicles (FY2026 orders received of ¥73,021 million and order backlog of ¥48,214 million, both at record-high levels)
• High visibility of future sales due to the accumulation of order backlog
• Development and demonstration of next-generation products such as EV fire pumper trucks and the AI-based on-site command support system
• Profit boost effect going forward from the complete amortization of goodwill (elimination of the approximately ¥591 million annual amortization burden)
• Continued expansion into overseas markets

Risks

• Impact on overseas business from U.S. trade policy and exchange rate fluctuations
• Risk of delayed supply of parts and raw materials such as chassis (an issue that materialized in the prior fiscal year)
• Cost increase pressure from rising energy and raw material prices
• Risk of declining demand for fire truck and vehicle replacement due to worsening fiscal conditions of domestic municipalities
• Impact on the supply chain and overseas business from heightened geopolitical risk

Business Details

The Disaster Prevention Business manufactures and sells fire extinguishers and designs and installs fire-fighting equipment (fire extinguishing equipment and fire alarm equipment). Its main customers are domestic private and public facilities, and it comprises a build-to-forecast Disaster Prevention Equipment division and a build-to-order Fire-Fighting Equipment division. In FY2026 (ending March 2026), sales to external customers were ¥24,959 million, and segment profit was ¥5,148 million. Sales declined due to the falloff from a large-scale fire extinguishing equipment project recorded in the prior fiscal year, but profit increased.

Recent Overview

Sales declined 6.2% due to falloff from a large-scale project, but margin improved to over 20%

In the Disaster Prevention Business for FY2026 (ending March 2026), sales decreased by ¥1,659 million year on year to ¥24,959 million (down 6.2%), due to the impact of a decline in sales from a large-scale fire extinguishing equipment project recorded in the prior fiscal year. On the other hand, segment profit increased by ¥135 million to ¥5,148 million (up 2.7%), securing a profit increase, and the segment profit margin improved from 18.5% to 20.2%. Orders received were ¥10,946 million (down 16.8% year on year) and the order backlog was ¥6,638 million (down 7.5% year on year), continuing a decline in orders, requiring close attention to sales trends in the next fiscal period.

Key Products

Growth Drivers

• Continued stable demand and firm sales for fire extinguishers
• Demand for renewal and new installation of fire-fighting equipment against a backdrop of rising domestic disaster-prevention awareness
• Progress on orders and sales for large-scale construction projects in fire extinguishing equipment and fire alarm equipment
• Strengthening of comprehensive disaster prevention solutions under the medium-term management plan "Morita Reborn 2025"

Risks

• Risk of year-to-year fluctuation in orders and sales for large-scale fire extinguishing equipment projects (in FY2026, ending March 2026, sales declined 6.2% due to the falloff from a large-scale project in the prior fiscal year)
• Risk of continued decline in orders received and order backlog (FY2026 orders received of ¥10,946 million, down 16.8% year on year)
• Risk of rising manufacturing costs due to higher raw material and energy prices
• Inventory risk from demand fluctuations, as the Disaster Prevention Equipment division operates on a build-to-forecast basis

Business Details

The Industrial Machinery Business is centered on the manufacture and sale of environmental equipment and the design and installation of environmental plants. Although its scale within the group is small, accounting for approximately 5.6% of sales composition (FY2026, ending March 2026), it has a composite revenue structure of products, parts, and maintenance, and profitability is steadily improving. Segment assets stood at ¥4,497 million (end of FY2026, ending March 2026), achieving a high profit margin on a lightweight asset base.

Recent Overview

Steady sales of products, parts, and maintenance led to increased sales and profit, but orders received and order backlog declined year on year

In FY2026 (ending March 2026), sales of products and parts/maintenance progressed steadily, with sales increasing by ¥113 million year on year to ¥6,476 million (up 1.8%) and segment profit increasing by ¥42 million to ¥896 million (up 4.9%), achieving both higher sales and higher profit. On the other hand, orders received decreased by ¥1,303 million year on year (down 18.7%) to ¥5,669 million, and the order backlog also decreased by ¥807 million from the prior fiscal year-end (down 15.5%) to ¥4,384 million, leaving concerns about the accumulation of future sales.

Key Products

Growth Drivers

• Expansion of a stable revenue base through a composite revenue structure of products, parts, and maintenance
• Maintaining and improving the high profit margin (13.8%) leveraging a lightweight asset base (segment assets of ¥4,497 million)
• Promotion of corporate value enhancement measures based on the group's medium-term management plan "Morita Reborn 2025"
• Continued demand for environmental equipment and environmental plants against a backdrop of tightening environmental regulations

Risks

• Concerns about securing sales going forward, as orders received fell to ¥5,669 million (down 18.7% year on year) and the order backlog fell to ¥4,384 million (down 15.5% from the prior fiscal year-end)
• Environmental plant projects are prone to performance fluctuation depending on the presence of large-scale orders, making order leveling a challenge
• Uncertainty in the external environment, including the impact of U.S. trade policy, exchange rate trends, and rising raw material prices
• Being the smallest segment within the group, there is a risk of dependence on a single operating company

Business Details

The Environmental Vehicles Business is a segment engaged in the manufacture and sale of environmental conservation vehicles, including sanitation trucks and refuse collection trucks. Its main customers are municipalities and waste disposal operators, capturing demand for environmental infrastructure both domestically and overseas. Although relatively small, accounting for approximately 11.6% of the group's total sales (¥116,596 million in FY2026, ending March 2026), both product orders and sales have progressed steadily, with profitability on an improving trend. In FY2026 (ending March 2026), steady progress in product sales resulted in both higher sales and higher profit.

Recent Overview

Steady progress in product sales led to higher sales and higher profit, with order backlog also expanding

In the Environmental Vehicles Business for FY2026 (ending March 2026), steady progress in product sales resulted in sales increasing by ¥1,124 million year on year to ¥13,469 million (up 9.1%), and segment profit increasing by ¥226 million year on year to ¥1,254 million (up 22.1%). Orders received grew to ¥14,741 million (up 3.1% year on year), and the order backlog grew to ¥12,354 million (up 11.5% year on year), improving visibility into future sales in the coming fiscal periods. No impairment loss on fixed assets occurred in the current consolidated fiscal year.

Key Products

Growth Drivers

• Steady progress in product orders and sales (FY2026 orders received of ¥14,741 million, up 3.1% year on year)
• Improved visibility into future sales through the accumulation of order backlog (order backlog of ¥12,354 million, up 11.5% year on year)
• Continued demand for replacement of aging vehicles among domestic municipalities
• Expanding demand for environmental conservation vehicles due to tightening environmental regulations
• Expansion into overseas markets through the Chinese subsidiary (Nanjing Chenguang Morita Environmental Protection Technology Co., Ltd.)

Risks

• Risk of rising manufacturing costs due to higher raw material and energy prices
• Impact on overseas business (Chinese subsidiary) from exchange rate fluctuations
• Risk of capital expenditure restraint due to worsening fiscal conditions of municipalities
• Risk of demand fluctuation due to macroeconomic uncertainty, including the impact of U.S. trade policy
• Impact on the supply chain and raw material procurement from heightened geopolitical risk