KANADEN CORPORATION
8081・Prime Market・Wholesale Trade
FA Systems Business
Kanaden's largest segment, handling FA equipment and mechatronics products for the manufacturing industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external customers) | ¥54,935 million | ¥48,247 million | ↑ |
| Ordinary income (segment profit) | ¥2,205 million | ¥2,280 million | ↓ |
| Revenue increase | increase of ¥6,687 million | － | ↑ |
| Profit decrease | decrease of ¥75 million | － | ↓ |
| Goodwill amortization | ¥211 million | ¥166 million | ↑ |
| Unamortized goodwill balance (period-end) | ¥1,400 million | ¥1,611 million | ↓ |
| Segment assets (period-end) | ¥26,254 million | ¥25,644 million | ↑ |
| Depreciation expense | ¥92 million | ¥62 million | ↑ |
| Increase in tangible and intangible fixed assets | ¥247 million | ¥406 million | ↓ |
Business Details
Sells Automation & IoT Solutions that contribute to improving quality and productivity of manufacturing lines, FA Equipment including controllers and drive control equipment, and mechatronics products such as laser processing machines and EDM machines. As a Mitsubishi Electric FA equipment distributor, the segment targets domestic and overseas manufacturing customers as its primary focus, providing integrated engineering, installation, and service through collaboration with subsidiaries such as Takashima Electric and Takashima Engineering. This core segment accounts for approximately 38% of consolidated group revenue.
Recent Overview
Revenue increased, but ordinary income declined slightly due to lower profit in industrial mechatronics and higher SG&A expenses
In FY2026 (ending March 2026), the FA Systems Business achieved revenue of ¥54,935 million (an increase of ¥6,687 million year on year). In the FA field, while the impact of inventory adjustments in drive control equipment continued, power distribution control equipment showed a recovery trend, and Takashima Electric, consolidated in the prior fiscal year, contributed to performance. On the other hand, in the industrial mechatronics field, a decline in laser processing machine orders had an impact, and combined with an increase in SG&A expenses, ordinary income declined slightly to ¥2,205 million (a decrease of ¥75 million year on year). Following the finalization of provisional accounting treatment related to the business combination, goodwill was revised from ¥318 million to ¥298 million (a decrease of ¥19 million).
Key Products
Growth Drivers
- Steady underlying demand for automation and DX as labor shortage countermeasures
- Recovery trend in power distribution control equipment
- Steady performance of instrumentation systems for the manufacturing industry
- Business scale expansion and performance contribution from the consolidation of Takashima Electric and Takashima Engineering
- Strengthening of solution proposal capabilities and expansion of overseas business under the medium-term management plan ES・C2025
- Strategic resource concentration in high-growth fields such as defense, medical, and nursing care (next medium-term plan policy)
Risks
- Risk of prolonged inventory adjustments in the FA field (continued sluggishness in drive control equipment)
- Impact of demand decline and supply chain inventory adjustments due to slowing Chinese economic growth and resource regulations
- Continued risk of order decline in the industrial mechatronics field (laser processing machines)
- Impact of US trade policy (tariffs) on manufacturing capital expenditure
- Pressure on profit margins from increased SG&A expenses (personnel costs, general administrative expenses)
- Slowing growth in the industrial systems field due to the drop-off of a large-scale order from the prior fiscal year
Last updated: June 22, 2026