Mitsubishi Logisnext Co., Ltd.Delisted

Business Details

The Domestic Business segment covers the domestic production and sale of logistics equipment centered on forklifts and maintenance parts, including sales of related products and maintenance parts. The domestic sales division works in coordination with the production and technology divisions to strengthen profitability through price optimization and the reorganization of directly affiliated sales companies. The domestic market has remained stable and solid, accounting for approximately 30% of consolidated net sales. The segment also serves as a manufacturing base responsible for supplying knock-down parts to North America.

Recent Overview

Orders remained solid, but sales and profit both declined slightly due to changes in distribution channels and reduced parts supply to North America

For the nine months ended December 2025 (FY2026, ending March 2026), Domestic Business net sales were ¥143,142 million (down 2.1% year on year), and segment profit was ¥2,975 million (down 3.3% year on year). While orders remained solid and price optimization measures had a positive effect, profit was pressured by the transfer of some products to the Overseas Business segment due to changes in distribution channels, as well as a decrease in the supply of knock-down parts to North America. Operating profit margin before amortization of goodwill etc. fell 0.4 percentage points to 4.2%, down from 4.6% in the same period of the prior year. Additionally, Logisnext Tokyo and Logisnext Chubu have been excluded from the scope of consolidation.

Key Products

Growth Drivers

• Continued stable and solid demand in the domestic logistics equipment market
• Improved profitability from price optimization measures
• Improved business efficiency from integrating head office domestic sales functions with directly affiliated sales companies
• Enhanced added value through the introduction of new products such as battery-powered and lithium-ion battery models
• Expanding demand for automation and autonomization products such as AGV/AGF (in response to the logistics 2024 problem)

Risks

• Impact on domestic manufacturing utilization from a decrease in knock-down parts supply to North America
• Structural changes in net sales due to the transfer of some products to the Overseas Business segment following changes in distribution channels
• Business operation risks during the transition period following the reorganization of directly affiliated domestic sales companies (deconsolidation of Logisnext Tokyo and Logisnext Chubu)
• Risk of delisting and changes in management structure associated with the planned tender offer by LVJ Holdings 2 GK
• Risk that a global economic slowdown caused by US tariff policy spreads to domestic demand

Business Details

This segment covers the overseas production and sale of logistics equipment centered on forklifts and maintenance parts, including sales of related products and maintenance parts. Net sales account for approximately 70% of the consolidated total, making it the most important segment. The Americas (mainly the US) is the largest market, and the company also operates production and sales bases in Europe, Asia, and China. Market conditions differ by region, and trends in the Americas have a major impact on overall company performance.

Recent Overview

Weak demand and rising tariff costs in the Americas hit hard, causing segment profit to plunge 53.0% year on year

For the nine months ended December 2025 (FY2026, ending March 2026), Overseas Business net sales were ¥339,571 million (down 4.2% year on year), and segment profit was ¥7,120 million (down 53.0% year on year). While Europe, Asia, and China performed solidly with increased sales and profit, the core Americas market saw a significant decline in both unit sales and profit due to a combination of factors: weaker demand caused by US tariff policy, delayed orders from major customers, increased sales costs from intensified competition with Korean manufacturers, and higher tariff burdens. The impact of yen appreciation against the dollar also pushed down the yen-converted value of net sales. Meanwhile, in Europe, the effects of the closure of the Sweden plant and consolidation of production have become apparent, and in China, the effects of the reorganization of the sales business are starting to emerge.

Key Products

Growth Drivers

• Reduced fixed costs and improved production efficiency from the closure of the Sweden plant in Europe and consolidation of production at the Finland plant (effects became apparent for the nine months ended December 2025)
• Improved earnings structure from selective focus (sales business reorganization) in the China market (effects emerged for the nine months ended December 2025)
• Expansion of the battery-powered forklift lineup (including lithium-ion models) to address decarbonization demand
• Resolution of the dealer inventory adjustment phase in the Americas and expectations of demand recovery (a recovering trend compared to the prior year)
• Continued solid demand for logistics equipment in the European, Asian, and Chinese markets

Risks

• Weaker demand and cost increases due to US tariff policy (difficulty passing on tariff burden to sales prices)
• Increased sales costs and pricing pressure from intensified competition with Korean and Chinese manufacturers
• Impact of yen appreciation against the dollar on foreign currency translation (reduction in yen-converted value of Americas sales)
• Intensifying competition from the rise of Chinese-made lithium-ion battery forklifts in Europe and Asia
• Risk of additional provisions for contingent losses related to delays in US engine certification (a domestic engine manufacturing subsidiary has already booked an extraordinary loss of ¥3,250 million)
• Risk that US tariff policy triggers economic slowdowns across various global regions, spreading to overall demand
• Geopolitical risks (the invasion of Ukraine, situation in the Middle East) causing supply chain disruptions