Worth reading
69In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Progress reportROE targetMaintain at a high level → Not disclosedROE is the percentage of profit generated from money provided by shareholders.
Total investment plan¥19.91 billion (new plant construction project; maximum subsidy of ¥6.64 billion)
Investment amount by sectorField Construction of a new plant and establishment of an ammonia-fueled engine assembly and commissioning plant / Amount ¥19.91 billion
Statements about the use of capital
Payout ratio / DOE policyDuring the Second Mid-Term Business Plan period (FY2025–FY2027), the company plans to gradually raise its payout ratio while achieving consecutive dividend increases in line with earnings growth. It will also work to maintain stable dividends.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of equity of approximately 12% (risk-free rate of approximately 2.4%, beta of approximately 1.6, and market risk premium of approximately 6%)The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceIn FY2025, the share price rose significantly and reached a new all-time high. PBR remained above 1x, reaching 5.6x at the end of FY2025.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Developing future growth drivers and creating new markets
02Strengthening the global expansion of UE engines
03Continuous production of the same engine models
04Capturing after-sales service business
05Further expanding the licensing business
06Building a global supply chain
07Research and development of next-generation decarbonized-fuel engines
08Construction of a New Plant
09Building engagement with shareholders and investors
10Continuing and strengthening IR and SR activities
Plan assumptionsThe company assumes high utilization of vessels, a steady newbuilding market, and expanding demand from overseas licensees. Numerical assumptions for foreign exchange rates, market growth rates and raw material prices are Not disclosed.
Non-financial targetsIndicator Production ratio of decarbonized-fuel engines / Target value 40％ / Timing Around 2033, Indicator Production ratio of decarbonized-fuel engines / Target value 100％ / Timing FY2040
Risks identified by the company
The earnings outlook is based on certain assumptions, and actual results and other outcomes may differ materially from the information presented.
| Item | Details |
|---|---|
| Plan name | Second Mid-Term Business Plan |
| Plan period | FY2025-FY2027 |
| Progress against the plan | Progress report |
| ROE target | Maintain at a high level → Not disclosed |
| Payout ratio / DOE policy | During the Second Mid-Term Business Plan period (FY2025–FY2027), the company plans to gradually raise its payout ratio while achieving consecutive dividend increases in line with earnings growth. It will also work to maintain stable dividends. |
| Cost of capital | Cost of equity of approximately 12% (risk-free rate of approximately 2.4%, beta of approximately 1.6, and market risk premium of approximately 6%) |
| Self-assessment of PBR and share price | In FY2025, the share price rose significantly and reached a new all-time high. PBR remained above 1x, reaching 5.6x at the end of FY2025. |
| Total investment plan | ¥19.91 billion (new plant construction project; maximum subsidy of ¥6.64 billion) |
| Investment amount by sector | Field Construction of a new plant and establishment of an ammonia-fueled engine assembly and commissioning plant / Amount ¥19.91 billion |
| Non-financial targets | Indicator Production ratio of decarbonized-fuel engines / Target value 40％ / Timing Around 2033, Indicator Production ratio of decarbonized-fuel engines / Target value 100％ / Timing FY2040 |
| Plan assumptions | The company assumes high utilization of vessels, a steady newbuilding market, and expanding demand from overseas licensees. Numerical assumptions for foreign exchange rates, market growth rates and raw material prices are Not disclosed. |
| Key initiatives | Developing future growth drivers and creating new markets, Strengthening the global expansion of UE engines, Continuous production of the same engine models, Capturing after-sales service business, Further expanding the licensing business, Building a global supply chain, Research and development of next-generation decarbonized-fuel engines, Construction of a New Plant, Building engagement with shareholders and investors, Continuing and strengthening IR and SR activities |
| Risks identified | The earnings outlook is based on certain assumptions, and actual results and other outcomes may differ materially from the information presented. |
| Publication date | 14 May 2026 |
Items this document does not state (11)
Sales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTreasury share acquisition policySegment targetResults under the previous planReason for revision or withdrawalSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company cited stronger-than-expected growth in highly profitable businesses such as repairs and parts, a substantial order backlog for marine internal combustion engines, increased orders, production and sales by overseas licensees, and progress in the development and manufacture of decarbonized-fuel engines.
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