Makita Corporation
6586・Prime Market・Machinery
Japan Segment
Core segment supporting all other segments as Makita's manufacturing and export base
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (shipping-source basis, including internal transfers) | ¥466,867 million | ¥437,282 million | ↑ |
| Revenue from external customers | ¥151,458 million | ¥146,494 million | ↑ |
| Inter-segment internal transfer revenue | ¥315,409 million | ¥290,788 million | ↑ |
| Operating profit | ¥38,935 million | ¥27,658 million | ↑ |
| Operating margin (on total segment basis) | 8.3% | 6.3% | ↑ |
| Revenue from domestic market (by market) | ¥132,136 million | ¥127,168 million | ↑ |
Business Details
The Japan Segment is the manufacturing and sales base operated by Makita Corporation itself, and in addition to sales to the domestic market, internal transfers to overseas subsidiaries (on a shipping-source basis) account for the majority of segment revenue. External customer revenue was only ¥151,458 million, but total revenue including inter-segment internal transfers reached ¥466,867 million, reflecting the segment's role as the sole manufacturing and supply function for the entire group. In the domestic market, despite headwinds such as declining housing starts and soaring construction material prices, the XGT Series and Cordless Gardening Equipment supported sales.
Recent Overview
Operating profit increased significantly by 40.8% year on year due to increased internal transfers and improved profitability
In the Japan Segment for FY2026 (ending March 2026), inter-segment internal transfer revenue to overseas subsidiaries increased to ¥315,409 million (from ¥290,788 million in the prior period), and total revenue reached ¥466,867 million (up 6.8% year on year from ¥437,282 million). Operating profit improved substantially to ¥38,935 million (from ¥27,658 million), and the operating margin rose to 8.3% (from 6.3%). In the domestic market, amid continued declines in housing starts and soaring construction material prices, Cordless Gardening Equipment and the XGT Series supported sales, with revenue from the domestic market up 3.9% year on year to ¥132,136 million. On the production side, the company promoted diversification and decentralization of production bases and procurement sources in response to geopolitical risks.
Key Products
Growth Drivers
- Support for domestic demand and market expansion through new product launches in the XGT Series (40Vmax lithium-ion battery)
- Strengthened sales expansion of Cordless Gardening Equipment & Cleaning-related Equipment (positioned as the next pillar of business after power tools)
- Steady growth in the Parts, Repair & Accessories business (up 6.5% year on year on a consolidated basis)
- Revenue contribution from increased internal transfers to overseas subsidiaries (¥315,409 million, up 8.5% year on year)
- Improvement in cost ratio and operating margin (from 6.3% to 8.3%) through continuous cost reduction measures
- Strengthened supply stability through diversification and decentralization of production bases and procurement sources
Risks
- Deteriorating domestic demand environment due to declining housing starts and soaring construction material prices
- Foreign exchange rate fluctuation risk (significant impact on internal transfer revenue and consolidated results in the event of yen appreciation)
- Risk of market disruption from US tariff measures spilling over into demand for internal transfers to overseas subsidiaries
- Risk of concentration in specific production sites (domestic production ratio 7.5%, overseas production ratio 92.5%)
- Pricing pressure from intensifying global competition
- Impact on raw material and logistics costs from geopolitical risks (Middle East situation, Ukraine situation)
- Pressure on SG&A expenses from increased sales personnel and advertising expenses
Last updated: June 23, 2026