ENVALITH
株式会社マキタ logo

Makita Corporation

6586・Prime Market・Machinery

Official website
株式会社マキタ logo
Makita Corporation6586

Business

Makita Corporation, founded in 1915 and headquartered in Anjo City, Aichi Prefecture, is a global manufacturer of power tools. The Group consists of 54 companies, including 53 consolidated subsidiaries, and its main businesses are the manufacture and sale of power tools (drills, grinders, impact drivers, etc.), cordless gardening equipment (chainsaws, brush cutters, etc.), air tools, and household equipment, among others. Overseas sales account for 83.0% of revenue, and the company operates sales and service bases around the world, including in Europe, North America, Asia, Latin America, Oceania, and the Middle East. Its primary customers are professional users engaged in construction, building, infrastructure, agriculture, and forestry, and the company has established its brand through high-quality, highly durable products.

Business Model

The company adopts a vertically integrated model in which products manufactured at production sites in Japan, China, Thailand, the UK, Romania, and elsewhere are sold directly to professional users through sales subsidiaries around the world. Revenue is composed of three segments: Power Tools, etc. (52.7%), Gardening Equipment, Household Equipment, etc. (24.4%), and Parts, Repair & Accessories (22.9%), with after-sales service revenue accumulating steadily as a stock-type revenue stream.

Company Strengths

Based on battery charge/discharge technology and brushless motor technology, the company has developed the XGT Series of 40Vmax lithium-ion battery products achieving output equivalent to air- and engine-powered tools. It holds 5,742 intellectual property rights domestically and internationally (including 4,511 patents and utility model rights), with R&D expenses of ¥16,393 million, up 11.7% year on year, and 1,421 R&D personnel.

With 53 consolidated subsidiaries across Europe, North America, Asia, Latin America, Oceania, the Middle East, and other regions, the company maintains ample inventories of products and repair parts in each country and region, enabling a rapid repair and logistics system. Revenue from Parts, Repair & Accessories rose 6.5% year on year to ¥177,630 million (22.9% of consolidated revenue), forming a stock-type revenue base that continues to grow steadily.

As of the end of FY2026 (ending March 2026), the ratio of equity attributable to owners of the parent stood at 84.4%, with cash and cash equivalents of ¥257,385 million and unused credit lines of ¥239,279 million, representing an extremely sound financial base. With a financial structure that is nearly debt-free, the company maintains a system capable of funding R&D, capital expenditures, and shareholder returns from its own resources.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue increased 3.2% year-on-year to ¥777,600 million, achieving revenue growth; however, operating profit declined 2.2% year-on-year to ¥104,705 million (operating margin of 13.5%, versus 14.2% in the prior period), resulting in a profit decrease. While foreign exchange effects and cost reductions improved the cost ratio, SG&A expenses increased significantly from ¥164,388 million to ¥179,266 million due to sales personnel reinforcement and increased advertising expenses. ROE also declined from 8.8% to 8.3%, raising questions about the effectiveness of profitability improvement measures toward achieving the FY2030 ROE target of 11%.

In the North American market, regional revenue declined 6.3% year-on-year to ¥78,662 million, marking a second consecutive year of revenue decline. In addition to slowing housing investment due to high interest rates and a decelerating labor market, market competition has intensified. Furthermore, the FY2027 (ending March 2027) forecast explicitly cites continued market disruption from US tariff measures as a risk, leaving the timing of North America's recovery uncertain as an external factor. Although the North America Segment operating profit turned positive at ¥2,306 million, the gap with Europe (¥39,015 million) remains substantial, and the uneven distribution of regional profitability continues.

The dividend policy was raised from a "total payout ratio of 35% or more" to a "consolidated dividend payout ratio of 50% or more," with the annual dividend for FY2026 (ending March 2026) set at ¥150 (versus ¥110 in the prior period) and the dividend payout ratio significantly expanded to 50.0%. In addition, treasury stock purchases of ¥55,928 million were carried out, and the number of treasury shares at period-end doubled to 21,602,648 shares (versus 10,976,752 shares in the prior period). Cash flow from financing activities surged to an outflow of ¥99,167 million, and depending on external factors (market conditions), balancing this with capacity for growth investment could become a challenge. The interim dividend forecast of ¥79 for FY2027 (ending March 2027) represents a substantial increase from ¥20 in the prior interim period, making confirmation of the full-year dividend level important.

Growth Strategy

Maintain and expand global top share through expansion of the XGT cordless platform and reinforcement of a multipolar production system

Continue launching high-value-added new products such as a cordless impact wrench with torque equivalent to pneumatic tools and a cordless blower comparable to a 65mL engine-class model. Accelerate the development of the professional cordless market outside the construction field (gardening, infrastructure, cleaning, etc.) to improve sales and profitability. R&D expenses are on an increasing trend, at ¥16,613 million in FY2026 (ending March 2026) and a planned ¥18,500 million in FY2027 (ending March 2027).

Position Cordless Gardening Equipment, which emits no exhaust gas during use, as a means of contributing to a decarbonized society while achieving business growth, and focus on product development and market cultivation. Expanded sales of XGT Series gardening equipment in Central and South America, Oceania, Europe, etc. are contributing to sales growth, and the capture of new demand is progressing.

In response to geopolitical risk, promote a multipolar production and procurement system that eliminates excessive dependence on specific countries and suppliers. Capital expenditure is set to increase substantially, from ¥21,532 million in FY2026 (ending March 2026) (versus ¥17,594 million in the prior fiscal year) to a planned ¥30,000 million in FY2027 (ending March 2027). In parallel, the company is promoting the use of renewable energy, including the addition of solar panels at its China plant.

Raised the dividend policy to a consolidated dividend payout ratio of 50% or more (previously: total return ratio of 35% or more), achieving an annual dividend of ¥150 and a payout ratio of 50.0% in FY2026 (ending March 2026). Conducted share buybacks of ¥55,928 million to control shareholders' equity. The company has set a target of achieving ROE of 11% or more in FY2030, aiming to expand the equity spread.

Last updated: July 19, 2026