Murata Manufacturing Co., Ltd.
6981・Prime Market・Electric Appliances
Business
Murata Manufacturing traces its origins to 1944 as a specialized manufacturer of ceramic capacitors, and now develops, manufactures, and sells electronic components across three segments: Components (capacitors, Inductors, EMI Suppression Filters, etc.), Devices & Modules (RF modules, lithium-ion secondary batteries, sensors, etc.), and Solutions Business. Electronic components account for the majority of revenue of ¥1,830,856 million (FY2026 (ending March 2026)), with products supplied across a wide range of applications including smartphones, automobiles, servers, and industrial equipment. The company operates numerous production and sales sites both domestically and overseas, and has built an integrated production system spanning from materials to finished products.
Business Model
Based on a fully integrated production system in which materials technology, product design technology, and production technology are all developed in-house, the company mass-produces high-value-added components such as Multilayer Ceramic Capacitors (MLCC). Domestic and overseas production subsidiaries process semi-finished goods into finished products, which are supplied to electronic equipment manufacturers worldwide through sales subsidiaries in the U.S., China, Europe, and elsewhere. The company has a diversified customer base, with dependence on sales to any single customer kept below 10%, and secures stable earnings through deployment across a wide range of applications including communications, mobility, computers, and industrial equipment.
Company Strengths
In FY2026 (ending March 2026), revenue from capacitors reached ¥936,418 million (up 12.6% year on year), accounting for 51% of consolidated revenue. The company has continued to develop world-class smallest products, including the start of mass production of the world's first 1005M-size Multilayer Ceramic Capacitors (MLCC) with a capacitance of 47μF, achieving technological differentiation. ROIC (pre-tax) for the Components segment reached 22.4%.
The company has built a system for integrated in-house development of material technology, product design technology, and production technology, achieving an operating margin of 26.8% in the Components segment. It continues to make capital expenditures of ¥247,778 million (FY2026, ending March 2026) to expand production capacity, achieving both operating leverage gains and cost reductions simultaneously. The company holds a credit rating of AA+ from R&I.
Against total assets of ¥3,199,099 million at the end of FY2026 (ending March 2026), interest-bearing debt stood at only ¥3,261 million, maintaining a virtually debt-free management structure. Operating cash flow secured ¥425,222 million, and liquid assets such as cash and cash equivalents reached ¥664,632 million (equivalent to approximately 4.4 months of average monthly revenue). The ratio of equity attributable to owners of the parent stood at an extremely high 85.0%.
ENVALITH's Perspective
Performance Trend
Revenue increased for the second consecutive period from the trough in FY2024 (ending March 2024) of ¥1,640,158 million, reaching ¥1,830,856 million in FY2026 (ending March 2026), up 5.0% year on year. Growth was driven by MLCC, Inductors, and EMI Suppression Filters for AI servers, with computer applications standing out with a 28.4% increase. Meanwhile, operating profit reached only ¥281,835 million (up 0.8% year on year), as goodwill impairment of ¥43,798 million in the surface acoustic wave filter business constrained profit growth. Profit attributable to owners of parent was ¥233,920 million (up 0.0% year on year), essentially flat. As an external factor, yen appreciation (average rate of ¥150.78 against the US dollar, versus ¥152.57 in the prior period) reduced revenue by approximately ¥31,000 million. For the next fiscal year, the company plans revenue of ¥1,960,000 million and operating profit of ¥380,000 million, representing substantial profit growth, and expects ROIC to improve to 12.3%.
Growth Strategy
Capturing AI-driven electronics growth while building a business foundation for the 2030 digital twin society through a three-layer portfolio
Continuing to deploy capital expenditure of ¥250,000 million (next fiscal year plan) to meet robust server demand. Expanding production capacity centered on capacitors and power modules to respond to a sharp increase in order backlog (up 89.5% for capacitors versus the end of the previous fiscal year). Aiming for an operating margin of 19.4% (next fiscal year forecast) through operating leverage gains and cost reductions.
Basic Policy 1 of the Mid-term Policy 2027 explicitly states the goal of establishing the world's No.1 share in Multilayer Ceramic Capacitors (MLCC) as well as Inductors and EMI Suppression Filters. Maintaining differentiation through development and mass production of world's smallest-class products and deepening of materials technology. Components ROIC (pre-tax) improved to 22.4% in FY2026 (ending March 2026), with continued revenue and profit growth planned for the next fiscal year.
Following goodwill impairment (¥43,798 million) in the surface acoustic wave filter business, the business plan has been reviewed. Aiming for a profit recovery centered on expansion of Functional Device Products (sensors and actuators) for mobility and computer applications (up 9.5% in FY2026 (ending March 2026)) and growth in Energy & Power Products for servers. The next fiscal year forecast targets high revenue growth in RF & Communication Products and Energy & Power Products.
Declared a goal of raising DOE (dividend on equity attributable to owners of the parent) to 5% by 2027. Annual dividend of ¥65 in FY2026 (ending March 2026) (payout ratio 50.9%), with ¥70 planned for the next fiscal year. In addition, on April 30, 2026, resolved a share buyback of up to 75,000,000 shares and ¥150,000,000,000, with all repurchased shares to be retired. Against the ¥400.0 billion shareholder return plan under the Mid-term Policy 2027, cumulative progress stands at ¥110.7 billion in dividends and ¥100.0 billion in share buybacks.
Positioning environment, wellness, and third-layer businesses as challenge areas, promoting co-creation with startups and the social implementation of the Solutions Business. Strategic investments executed and approved to date total a cumulative ¥28.3 billion (against a plan of ¥220.0 billion under the Mid-term Policy 2027), with full-scale commercialization still ahead. Long-term targets for 2030 are revenue of ¥2.5 trillion or more and an operating margin of 20% or higher.
Last updated: July 19, 2026