THE KINKI SHARYO CO., LTD.
7122・Standard Market・Transportation Equipment
Railway Vehicle-Related Business
The core business of Kinki Sharyo. Responsible for the manufacture and sale of railway vehicles for domestic and overseas markets.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (full year) | ¥36,252 million | ¥29,440 million | ↑ |
| Operating profit (full year) | ¥276 million | ¥745 million | ↓ |
| Segment assets | ¥57,366 million | ¥52,851 million | ↑ |
| Orders received (full year) | ¥31,537 million | ¥20,280 million (estimated) | ↑ |
| Order backlog (end of period) | ¥113,226 million | ¥117,944 million (estimated) | ↓ |
| Production volume (full year) | ¥37,466 million | 111.1% year-on-year | ↑ |
Business Details
The flagship segment of Kinki Sharyo, which manufactures and sells trains for JR, various private and municipal railway operators, overseas trains, and Vehicle Maintenance Parts. Domestically, major customers include large railway operators such as West Japan Railway Company and Kintetsu Railway; overseas, key customers include the Los Angeles County Metropolitan Transportation Authority and the Cairo Metro. The company has built a system for securing overseas projects through outsourcing of auxiliary operations to its subsidiary K.S. Technos Co., Ltd. and through its U.S. and Canadian bases (KINKISHARYO International, L.L.C., etc.).
Recent Overview
Sales expanded 23.1% year-on-year to ¥36,252 million, while operating profit fell 62.9% to ¥276 million.
In FY2026 (ending March 2026), sales rose sharply to ¥36,252 million (up 23.1% year-on-year) due to increased deliveries of trains to West Japan Railway Company and Kintetsu Railway. However, operating profit fell 62.9% to ¥276 million (from ¥745 million in the prior period), with profitability deteriorating significantly despite the increase in sales. Orders received increased substantially to ¥31,537 million (up 155.5% year-on-year), while the order backlog at period-end decreased slightly to ¥113,226 million (96.0% of the prior year level). By region, sales to Japan were ¥27,230 million, accounting for 73.4% of the total, while sales to the United States were ¥7,459 million.
Key Products
Growth Drivers
- Continued domestic demand recovery driven by increased deliveries of trains to West Japan Railway Company and Kintetsu Railway
- Steady execution of large-scale overseas projects already on order, including trains for the Cairo Metro and the Los Angeles County Metropolitan Transportation Authority
- Substantial increase in orders received to ¥31,537 million (up 155.5% year-on-year), securing an order backlog of ¥113,226 million
- Continued demand for new vehicle construction among domestic railway operators driven by energy conservation and CO2 reduction initiatives (GX response)
- Continued demand for new vehicle construction in overseas markets (North America, the Middle East, Asia) based on demographic and other factors
- Efforts to improve productivity through manufacturing transformation via DX and improvements to manufacturing equipment
Risks
- Despite increased sales, operating profit fell sharply by 62.9% year-on-year, posing a risk of declining profitability due to rising raw material and labor costs
- Order backlog decreased slightly to ¥113,226 million (96.0% year-on-year), requiring continued accumulation of orders over the medium to long term
- Risk of rising prices and procurement costs, as well as impact on production schedules, due to escalating tensions in the Middle East (difficult to fully incorporate into earnings forecasts)
- Risk of year-to-year fluctuation in domestic vehicle orders (in FY2025 (ending March 2025), sales experienced a significant decline due to a decrease in domestic orders)
- Foreign exchange risk related to overseas projects (foreign currency translation adjustments fluctuated from ¥3,643 million to ¥3,168 million)
- Risk that developments in U.S. trade policy could impact the North American business (sales to the United States of ¥7,459 million)
Last updated: June 24, 2026