Makita (6586): FY2025 Results Summary — Revenue Up on FX, Payout Policy Raised to 50% or More

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Makita labels the fiscal year ended March 31, 2026 as “FYE2026” (and the year ending March 31, 2027 as “FYE2027”) in its presentation; this site classifies the most recently completed fiscal year as FY2025. Labels in the body and tables below follow the company’s presentation. This article is based on the English-language “FYE2026 Investor Meeting” presentation dated May 12, 2026.

Makita Corporation reported FYE2026 revenue of ¥777.6 billion, up 3.2% year on year, while operating profit fell 2.2% to ¥104.7 billion. According to the presentation, revenue increased due to the impact of foreign exchange, and operating profit declined due to increased personnel expenses and other costs. Profit attributable to owners of the parent was ¥79.4 billion (+0.1%). The annual cash dividend per share was ¥150, up ¥40, alongside ¥55.9 billion of treasury share repurchases, and the dividend policy has been revised to a consolidated payout ratio of 50% or more. For FYE2027 the company forecasts revenue of ¥820.0 billion (+5.5%) and operating profit of ¥110.0 billion (+5.1%), and it has formulated “Our Vision for Fiscal Year 2030”.

Consolidated Results (Full-Year Actual)

Revenue rose to ¥777.6 billion from ¥753.1 billion, with domestic revenue of ¥132.1 billion (+3.9%) and overseas revenue of ¥645.5 billion (+3.1%). The weighted average change for all foreign currencies was a 3.7% depreciation in the value of the yen, with an effect on revenue of an increase of ¥23.3 billion. Operating profit was ¥104.7 billion (-2.2%), profit before income taxes was ¥108.0 billion (-0.4%), and profit attributable to owners of the parent was ¥79.4 billion (+0.1%). EPS was ¥299.95 versus ¥294.90 a year earlier.

Item	FYE2025	FYE2026	YOY
Revenue	¥753.1 billion	¥777.6 billion	+3.2%
Domestic	¥127.2 billion	¥132.1 billion	+3.9%
Overseas	¥625.9 billion	¥645.5 billion	+3.1%
Operating profit	¥107.0 billion	¥104.7 billion	-2.2%
Profit before income taxes	¥108.5 billion	¥108.0 billion	-0.4%
Profit attributable to owners of the parent	¥79.3 billion	¥79.4 billion	+0.1%
EPS	¥294.90	¥299.95	–

The operating profit bridge on slide 7 (yen in billions) shows FYE2025 operating profit of 107, with sales volume +0.3, currency +16.7, cost down +0.1, SG&A -10.9 and others -8.5, arriving at FYE2026 operating profit of 104.7.

Revenue by Region and Product Category

Makita does not present business segments in this presentation; instead it discloses revenue growth by region in local currency (LC) and sales trends for cordless products and outdoor power equipment (OPE). Consolidated revenue in local currency terms grew +0.2% year on year. By region, Japan was +3.9%, Europe -1.5% (Western +2.5%, Eastern -8.3%), North America -5.1%, Asia +6.0%, Central & South America +3.4%, Oceania +1.9%, and Mid-East/Africa +3.7%.

Region	Revenue growth YOY (LC)
Japan	+3.9%
Europe	-1.5%
Western	+2.5%
Eastern	-8.3%
North America	-5.1%
Asia	+6.0%
Central & South America	+3.4%
Oceania	+1.9%
Mid-East/Africa	+3.7%
Consolidated revenue	+0.2%

Sales of cordless products rose +4% year on year in yen terms (+1% in LC), and the proportion of cordless products in sales overall was 56%. OPE total sales were +1% in yen (-3% in LC), and cordless OPE sales were +2% in yen (-2% in LC).

Category	YOY (yen)	YOY (LC)
Cordless products	+4%	+1%
OPE Total	+1%	-3%
Cordless OPE	+2%	-2%

On a unit basis (million units), production was 28.05 (-4.4%), sales were 29.78 (-2.7%) and inventory was 15.76 (+3.3%); inventory months on hand improved to 9.8 from 10.2. Capital expenditure was ¥21.5 billion, depreciation and amortization ¥25.2 billion, and R&D costs ¥16.6 billion; FYE2026 capital expenditure highlights were the reconstruction of the Okazaki warehouse in Japan and the construction of warehouses in Australia and Singapore.

FYE2027 Forecast

For FYE2027, Makita forecasts revenue of ¥820.0 billion (+5.5%), comprising domestic revenue of ¥135.0 billion (+2.2%) and overseas revenue of ¥685.0 billion (+6.1%). Operating profit is forecast at ¥110.0 billion (+5.1%), profit before income taxes at ¥111.0 billion (+2.8%), and profit attributable to owners of the parent at ¥81.0 billion (+2.0%), with EPS of ¥313.45. The company expects to increase revenue by expanding its sales headcount and developing new markets, while personnel expenses are expected to increase due to the larger sales headcount and wage increases in various regions. The forecast operating profit bridge on slide 11 (yen in billions) shows sales volume +8.1, currency -2.7, cost up -1.9, SG&A -6.9 and others +8.7 from 104.7 to 110.

Item	FYE2026 (Actual)	FYE2027 (Forecast)	YOY
Revenue	¥777.6 billion	¥820.0 billion	+5.5%
Domestic	¥132.1 billion	¥135.0 billion	+2.2%
Overseas	¥645.5 billion	¥685.0 billion	+6.1%
Operating profit	¥104.7 billion	¥110.0 billion	+5.1%
Profit before income taxes	¥108.0 billion	¥111.0 billion	+2.8%
Profit attributable to owners of the parent	¥79.4 billion	¥81.0 billion	+2.0%
EPS	¥299.95	¥313.45	–

Unit forecasts for FYE2027 (million units) are production of 29.00 (+3.4%), sales of 31.00 (+4.1%) and inventory of 15.60 (-1.0%), with inventory months on hand in the mid-9 range. Capital expenditures are planned at ¥30.0 billion (FYE2026: ¥21.5 billion), depreciation and amortization at ¥25.0 billion (¥25.2 billion), and R&D costs at ¥18.5 billion (¥16.6 billion).

Shareholder Returns

Makita changed its basic policy regarding profit distribution, as announced on April 28, 2026. The previous policy set a lower limit on annual cash dividends of 20 yen per share and a total return ratio of 35% or greater; the new policy sets a consolidated payout ratio of 50% or greater, taking into account the balance of interim and year-end dividend amounts. In the event special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent per share after certain adjustments. The policy has taken effect starting with the dividend for the year ended March 2026.

For FYE2026, the annual cash dividend per share was ¥150 (interim ¥20, year-end ¥130), the repurchase of treasury shares was ¥55.9 billion, and the consolidated payout ratio was 50.0%. For FYE2027, the annual dividend is undetermined; the interim dividend is ¥79, the year-end dividend is undetermined, treasury share repurchases will be conducted in a flexible manner, and the consolidated payout ratio target is 50% or greater.

Item	FYE2026	FYE2027 (Forecast)
Profit attributable to owners of the parent	¥79.4 billion	¥81.0 billion
EPS	¥299.95	¥313.45
Annual cash dividend per share	¥150	(Undetermined)
Interim dividend	¥20	¥79
Year-end dividend	¥130	(Undetermined)
Repurchase of treasury shares	¥55.9 billion	In a flexible manner
Consolidated payout ratio	50.0%	50% or greater

Our Vision for Fiscal Year 2030

President and CEO Munetoshi Goto presented “Our Vision FY2030”. The company positions the five years leading up to FY2030 as a period for strengthening its earnings structure and business foundation to achieve sustainable growth, aiming to evolve into a “Supplier of a Comprehensive Range of Cordless Products”. Key financial metrics are an operating profit margin of 15% or greater (FY2025 result: 13.5%), ROE of 11% or greater (FY2025 result: 8.3%), and a cash balance equivalent to 2~3 months of monthly sales (FY2025 cash balance: 257.4 billion yen). The estimated cost of equity has increased from 6–8% to 8–10%, reflecting changes in the business environment including rising interest rates.

Growth drivers are the 40Vmax series and OPE: with an emphasis on these, approximately ¥150 billion of revenue increase is expected from the FY2025 level of 777.6 billion yen by FY2030, and the company targets raising the 40Vmax share of the cordless product sales mix to 25% by FY2030 (from 10% in FY2025, with 18V at 70% versus 75%). Initiatives include expanding sales headcount to identify users’ latent needs, developing a battery-powered motor unit to replace conventional 35cc–50cc general-purpose engines, diversifying production locations (China’s share of production fell from 66.9% of 26.43 million units in 2016 to 51.5% of 28.05 million units in 2025, while Romania rose from 8.1% to 18.6%) and developing supply chains in India. Over the five-year period FY2026 to FY2030, the company expects cumulative operating cash flow of 450 billion to 500 billion yen and capital investment and growth investment of 100 billion yen to 150 billion yen, with capex typically ¥20 billion~¥30 billion per year and shareholder returns supporting ROE of 11%+. The presentation also notes that Makita has agreed to acquire the target business of Panasonic Electric Works Co., Ltd. (power tool products including fastening equipment and factory-related IoT solutions), with implementation planned for FY2026, subject to regulatory approval.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.