Komori
Earnings presentation6104SHIBAURA MACHINE CO.,LTD.Machinery

Earnings briefing materials (actions for the final year of the Medium-Term Management Plan 2026)

As the Company expects it will be difficult to achieve the targets of the "Medium-Term Management Plan 2026" in fiscal 2026, it will implement emergency measures including cost reductions, bringing forward orders and sales, and business restructuring. It also outlined measures to strengthen its precision machining business through the acquisition of Nanotech, as well as growth initiatives from fiscal 2027 onward.

Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
—
Displayed only when the document provides numerical figures.
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesFirst half 520, second half 850
Operating profitFirst half 0, second half 42
Ordinary incomeFirst half ▲11, second half 42
Net incomeFirst half ▲8, second half 28
Operating profit marginFirst half 0, second half approximately 4.9% equivalent. However, the presentation does not explicitly state the margin.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The Company expects to fall short of the fiscal 2026 targets under the Medium-Term Management Plan 2026.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Resolution of U.S. tariffs (overall)+¥10–15 billion
  • Expansion in the European market (injection)+¥8–10 billion
  • Expansion of market share in India (injection and machine tools)+¥3–5 billion
  • Expansion in the North American market (precision)Up to +¥500 million
  • Orders and production of large special-purpose machines (machine tools)+¥3–5 billion
  • Orders for next-generation BSF equipment (extrusion)+¥10–15 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Foreign Exchange
    DetailsOutlook for yen appreciation
  • Material prices (standard products)
    DetailsProjected to increase 5–10%
  • Processed products and equipment
    DetailsProjected to increase 10–30%
  • Electrical equipment, including control panels
    DetailsProjected to increase 40%
  • Items procured by overseas plants
    DetailsProjected to increase 3%
  • Castings and processed items procured externally
    DetailsProjected to increase 10%
  • Materials costs
    DetailsProjected to increase 20%
  • Electricity costs
    DetailsProjected to increase 30–60%
  • Domestic transportation costs
    DetailsProjected to increase 7%
New initiatives
  • Formulation and implementation of emergency measures for fiscal 2026
  • Commencement of operations at the new manufacturing subsidiary in Anhui Province, China, and planned closure and sale of the Shanghai plant
  • Restructuring of the global production system in East and Southeast Asia
  • Establishment of a system to increase production of ultra-precision machining machines
  • Commencement of development of 800G-compatible models
  • Investment of approximately ¥120 million in equipment for spindle machining
  • Acquisition of Moore Nanotechnology Systems, LLC
  • Planned construction of an extrusion technical center at the Numazu plant
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative orders for extrusion molding machinesShown in graph
    Year on year against the same period last yearAnnual trends presented
  • Cumulative orders for injection molding machinesShown in graph
    Year on year against the same period last yearAnnual trends presented
  • Machine Tools segment order backlogApproximately 400
  • Machine Tools production volume target1.5 times fiscal 2025
    Year on year against the same period last yearTarget increase
  • Units ordered of high-precision slicersApproximately 100
  • Production capacity for ultra-precision machining machines3～5、6～9、12～15
    Year on year against the same period last yearExpansion of Production Capacity
Segment results
Not disclosed. Trends in order backlogs for the Molding, Machine Tools, and Controls businesses are presented.
Medium-term management plan targets
Target fiscal yearFiscal 2026
Net Sales¥200 billion
Operating profit margin10.0％
ROE9.5% or higher
ROICAt least 9.0%
Financial targets
ROE9.5% or higher
ROICAt least 9.0%
Operating profit margin10.0％
Market Size / Share
  • Existing market for ultra-precision machining639～718
  • New market for ultra-precision machining911～959
  • CAGR of the ophthalmic medical market8.0 ％
  • CAGR of the automotive optics market8.7 ％
Orders received and order backlog
Machine Tools segment order backlog of approximately ¥40 billion. Other order intake and order backlog figures are presented in graphs, but detailed figures are not disclosed.
Number of employees
Approximately 120 employees at the Shanghai plant, approximately 50 at the new Chinese manufacturing subsidiary, and 35 in European sales and services
Capital expenditures
Approximately 1.2
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal 2026
Net SalesFirst half 520, second half 850
Operating profitFirst half 0, second half 42
Ordinary incomeFirst half ▲11, second half 42
Net incomeFirst half ▲8, second half 28
Operating profit marginFirst half 0, second half approximately 4.9% equivalent. However, the presentation does not explicitly state the margin.
Self-assessment against the planThe Company expects to fall short of the fiscal 2026 targets under the Medium-Term Management Plan 2026.
Segment resultsNot disclosed. Trends in order backlogs for the Molding, Machine Tools, and Controls businesses are presented.
Breakdown of Factors Affecting the ChangeFactors Resolution of U.S. tariffs (overall) / Amount +¥10–15 billion, Factors Expansion in the European market (injection) / Amount +¥8–10 billion, Factors Expansion of market share in India (injection and machine tools) / Amount +¥3–5 billion, Factors Expansion in the North American market (precision) / Amount Up to +¥500 million, Factors Orders and production of large special-purpose machines (machine tools) / Amount +¥3–5 billion, Factors Orders for next-generation BSF equipment (extrusion) / Amount +¥10–15 billion
Key KPIsIndicator name Cumulative orders for extrusion molding machines / Value Shown in graph / Year on year against the same period last year Annual trends presented, Indicator name Cumulative orders for injection molding machines / Value Shown in graph / Year on year against the same period last year Annual trends presented, Indicator name Machine Tools segment order backlog / Value Approximately 400 / Year on year against the same period last year Not disclosed, Indicator name Machine Tools production volume target / Value 1.5 times fiscal 2025 / Year on year against the same period last year Target increase, Indicator name Units ordered of high-precision slicers / Value Approximately 100 / Year on year against the same period last year Not disclosed, Indicator name Production capacity for ultra-precision machining machines / Value 3～5、6～9、12～15 / Year on year against the same period last year Expansion of Production Capacity
Number of employeesApproximately 120 employees at the Shanghai plant, approximately 50 at the new Chinese manufacturing subsidiary, and 35 in European sales and services
Assumptions Underlying the Business OutlookItem Foreign Exchange / Details Outlook for yen appreciation, Item Material prices (standard products) / Details Projected to increase 5–10%, Item Processed products and equipment / Details Projected to increase 10–30%, Item Electrical equipment, including control panels / Details Projected to increase 40%, Item Items procured by overseas plants / Details Projected to increase 3%, Item Castings and processed items procured externally / Details Projected to increase 10%, Item Materials costs / Details Projected to increase 20%, Item Electricity costs / Details Projected to increase 30–60%, Item Domestic transportation costs / Details Projected to increase 7%
Medium-term management plan targetsTarget fiscal year Fiscal 2026 / Net Sales ¥200 billion / Operating profit margin 10.0％ / ROE 9.5% or higher / ROIC At least 9.0%
Financial targetsROE 9.5% or higher / ROIC At least 9.0% / Operating profit margin 10.0％
Capital expendituresApproximately 1.2
Orders received and order backlogMachine Tools segment order backlog of approximately ¥40 billion. Other order intake and order backlog figures are presented in graphs, but detailed figures are not disclosed.
Market Size / ShareItem Existing market for ultra-precision machining / Value 639～718, Item New market for ultra-precision machining / Value 911～959, Item CAGR of the ophthalmic medical market / Value 8.0 ％, Item CAGR of the automotive optics market / Value 8.7 ％
New initiativesFormulation and implementation of emergency measures for fiscal 2026, Commencement of operations at the new manufacturing subsidiary in Anhui Province, China, and planned closure and sale of the Shanghai plant, Restructuring of the global production system in East and Southeast Asia, Establishment of a system to increase production of ultra-precision machining machines, Commencement of development of 800G-compatible models, Investment of approximately ¥120 million in equipment for spindle machining, Acquisition of Moore Nanotechnology Systems, LLC, Planned construction of an extrusion technical center at the Numazu plant
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesThree months of the current quarterFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesKey points of the Q&A

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 excess production capacity due to the slowdown in the shift to EVs, a wait-and-see stance and delays in capital investment by the U.S. automotive industry due to tariffs, stagnation in BSF orders, a decline in sales scale, expectations for a stronger yen, and higher procurement prices resulting from the worsening situation in the Middle East.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Earnings briefing materials (actions for the final year of the Medium-Term Management Plan 2026) | SHIBAURA MACHINE CO.,LTD. (6104) timely disclosure | Komori