Miroku Corporation

Business Details

Engages in the production and sale of shotguns (Over-and-Under Double-Barreled Guns (Shotguns)), rifles (Bolt Action Rifles), and Hunting Gun-Related Products. The most important customers are Browning Arms Company (U.S.) and Browning International S.A. (Belgium), which together account for approximately 82% of consolidated net sales. Main manufacturing subsidiaries are Miroku Seisakusho Co., Ltd., Nangoku Miroku Co., Ltd., and Miroku Kogei Co., Ltd. The new Nissho plant in Nankoku City, Kochi Prefecture, was completed in February 2025, and began full-scale operation from February 2026.

Recent Overview

Bolt Action Rifles underperformed due to Trump tariffs and rising raw material costs; both net sales and profit declined year on year

In the first half of FY2026 (ending March 2026) (November 2025 to April 2026), the Hunting Guns Business recorded net sales of ¥5,096 million (down 4.2% year on year) and segment profit of ¥125 million (down 35.4% year on year). Orders from the most important customer, the Browning group, trended weak year on year due in part to the impact of the Trump administration's tariffs. While the Over-and-Under Double-Barreled Guns maintained sales volume and net sales roughly in line with the same period of the prior year, weak performance in Bolt Action Rifles caused overall net sales to decline. On the profit side, although the amortization burden eased due to the impairment loss on fixed assets recorded at the end of the prior fiscal year, the impact of soaring raw material prices was significant, and the situation in which cost increases could not be passed on to sales prices continued, resulting in a substantial year-on-year decline in profit.

Key Products

Growth Drivers

• A stable order base underpinned by a close partnership with the Browning group (maintaining long-term order levels in the U.S. and European markets)
• Expansion of production capacity and improvement in productivity through the full-scale operation of the new Nissho plant (Nankoku City, Kochi Prefecture) starting February 2026
• Reduced future depreciation burden (from FY2026, ending March 2026 onward) following the impairment loss on fixed assets (¥2,539 million) recorded at the end of the prior fiscal year
• Acquisition of new customers and demand stimulation through the addition of derivative models following the completion of full model changes for the two core products
• Improved price competitiveness through labor savings, process automation, robotics, and the use of IT/IoT

Risks

• Risk of reduced orders from the Browning group due to trade policy (tariffs) under the Trump administration (already materializing in the first half of FY2026, ending March 2026, manifesting as weak sales of Bolt Action Rifles)
• Continued surge in raw material prices and difficulty passing on the resulting cost increases to sales prices (this situation continued in the first half of FY2026, ending March 2026, with costs still not being passed through)
• Risk of sales concentration in the Browning group (Browning Arms Company 63.6%, Browning International S.A. 18.4%, together approximately 82%)
• Sluggish demand for firearms due to a slowdown in the global economy and stagnant personal consumption caused by deteriorating conditions in the Middle East and other factors
• Operational risks during the production transition period accompanying the full-scale operation of the new Nissho plant, and a substantial amount of interest-bearing debt (including syndicated loans)