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Earnings presentation6229OKUMURA ENGINEERING corp.Machinery

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue increased 3.4% year on year, driven by growth in the marine market, marking a record high for the fifth consecutive year on a first-quarter basis. Operating profit, however, fell 20.0% year on year due to higher material procurement costs, selling, general and administrative expenses, and foreign exchange losses.

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Earnings presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,921 million yen+3.4%
Operating profit369 million yen-20.0%
Ordinary income344 million yen-28.1%
Net income204 million yen-35.9%
Operating profit margin12.6 %
Full-year earnings forecast
Net Sales
11,900 million yen
Operating profit
1,060 million yen
Ordinary income
1,050 million yen
Profit attributable to owners of the parent
730 million yen
Dividend per share
50 yen
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales24.6
Operating profit34.8
Ordinary income32.8
Profit attributable to owners of the parent28
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue95 million yen
  • Land-based-51 million yen
  • Marine147 million yen
  • Increase in cost of sales-152 million yen
  • Increase in SG&A expenses-35 million yen
  • Increase in advertising expenses-9 million yen
  • Increase in R&D expenses-4 million yen
  • Decrease in non-operating income and expenses-42 million yen
  • Decrease in foreign exchange gains and losses-32 million yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Persistently high material prices
  • Persistently high energy costs
  • Higher personnel expenses associated with wage increases
  • Expenses related to the design and development of a new core system
New initiatives
  • Product price revisions in July 2026
  • Launch of ammonia valves in the market and establishment of mass-production capabilities in the fiscal year ending March 2027
  • Launch liquefied hydrogen valves in the market and establish mass-production capabilities in the fiscal year ending March 2030
  • Implementation of a new core business system
  • Transfer production of products to the China plant
  • Expansion of high-temperature fluid testing facilities
  • Creation of new businesses, including an IoT-based piping management system
  • Launch a specialist team for M&A and business alliances
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA447 million yen-16.2%
  • Overseas revenue ratio17.3 %
    yoy_change_pt0.2
  • Equity ratio82.5 %
    yoy_change_pt4.4
  • Orders received
  • Order backlog
  • PBR0.85 times
  • ROE7.6 %
  • PER11.2 times
Segment results
By market
Land-based
Net Sales
1,146 million yen
Year on year against the same period last year-4.3%
Marine
Net Sales
1,775 million yen
Year on year against the same period last year+9.0%
By industry
Building equipment
Net Sales
89 million yen
Year on year against the same period last year-16.4%
Petrochemicals
Net Sales
178 million yen
Year on year against the same period last year+34.3%
Iron, steel and metals
Net Sales
159 million yen
Year on year against the same period last year+12.4%
Electric Power and Gas
Net Sales
85 million yen
Year on year against the same period last year-29.8%
Machinery and Equipment
Net Sales
156 million yen
Year on year against the same period last year+3.2%
Paper and Pulp
Net Sales
74 million yen
Year on year against the same period last year+4.7%
Other
Net Sales
199 million yen
Year on year against the same period last year-20.5%
Marine
Net Sales
1,727 million yen
Year on year against the same period last year+12.9%
Medium-term management plan targets
Final year of the Second Medium-Term Management PlanFiscal year ending March 2028
Consolidated revenue
¥132 100 million
Operating profit margin
10 % or higher
ROE
8~10
Medium- to long-term vision
Target fiscal yearFiscal year ending March 2031
Consolidated revenue
¥200 100 million
Operating profit
¥20 100 million
Financial targets
ROE
Target8~10%
Actual results7.6
PBR
TargetMore than 1x
Actual results0.85
Equity ratio
Actual results82.5 %
Market Size / Share
  • Global industrial valve market$78.3 billion in 2024 and $123.9 billion in 2034 (forecast)
  • Share40% global share of valves for marine exhaust gas systems
  • ShareTargeting a 50% global share of ammonia valves in fiscal 2030
Number of stores and locations
Number at period-end9 domestic locations, 4 overseas locations
Number of employees
Number of Employees371 consolidated, 265 non-consolidated
Reference dateEnd of March 2026
Annual Dividend
Annual dividend per share50 yen
Payout ratio
30 Approximately, as a guideline
Acquisition of treasury shares
Share buyback conducted in May 2026. The amount, number of shares, and period of the acquisition framework are Not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales2,921 million yen (YoY +3.4%)
Operating profit369 million yen (YoY -20.0%)
Ordinary income344 million yen (YoY -28.1%)
Net income204 million yen (YoY -35.9%)
Operating profit margin12.6 %
Full-year earnings forecastNet Sales 11,900 million yen / Operating profit 1,060 million yen / Ordinary income 1,050 million yen / Profit attributable to owners of the parent 730 million yen / Dividend per share 50 yen
Progress against full-year forecastNet Sales 24.6 / Operating profit 34.8 / Ordinary income 32.8 / Profit attributable to owners of the parent 28
Segment resultsBy market Land-based Net Sales 1,146 million yen / yoy_pct -4.3 / Marine Net Sales 1,775 million yen / yoy_pct 9 / By industry Building equipment Net Sales 89 million yen / yoy_pct -16.4 / Petrochemicals Net Sales 178 million yen / yoy_pct 34.3 / Iron, steel and metals Net Sales 159 million yen / yoy_pct 12.4 / Electric Power and Gas Net Sales 85 million yen / yoy_pct -29.8 / Machinery and Equipment Net Sales 156 million yen / yoy_pct 3.2 / Paper and Pulp Net Sales 74 million yen / yoy_pct 4.7 / Other Net Sales 199 million yen / yoy_pct -20.5 / Marine Net Sales 1,727 million yen / yoy_pct 12.9
Breakdown of Factors Affecting the ChangeFactors Increase in revenue / Amount 95 million yen, Factors Land-based / Amount -51 million yen, Factors Marine / Amount 147 million yen, Factors Increase in cost of sales / Amount -152 million yen, Factors Increase in SG&A expenses / Amount -35 million yen, Factors Increase in advertising expenses / Amount -9 million yen, Factors Increase in R&D expenses / Amount -4 million yen, Factors Decrease in non-operating income and expenses / Amount -42 million yen, Factors Decrease in foreign exchange gains and losses / Amount -32 million yen
Key KPIsEBITDA 447 million yen (YoY -16.2%), Overseas revenue ratio 17.3 %, Equity ratio 82.5 %, Orders received 非開示, Order backlog 非開示, PBR 0.85 times, ROE 7.6 %, PER 11.2 times
Number of stores and locationsNumber at period-end 9 domestic locations, 4 overseas locations / Number of store openings and closures during the period Not disclosed
Number of employeesNumber of Employees 371 consolidated, 265 non-consolidated / Reference date End of March 2026 / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookPersistently high material prices, Persistently high energy costs, Higher personnel expenses associated with wage increases, Expenses related to the design and development of a new core system
Medium-term management plan targetsFinal year of the Second Medium-Term Management Plan Fiscal year ending March 2028 / Consolidated revenue ¥132 100 million / Operating profit margin 10 % or higher / ROE 8~10 / Medium- to long-term vision Target fiscal year Fiscal year ending March 2031 / Consolidated revenue ¥200 100 million / Operating profit ¥20 100 million
Financial targetsROE Target 8~10% / Actual results 7.6 / PBR Target More than 1x / Actual results 0.85 / Equity ratio Actual results 82.5 %
Annual DividendAnnual dividend per share 50 yen / Interim and Year-End Breakdown Not disclosed
Payout ratio30 Approximately, as a guideline
Acquisition of treasury sharesShare buyback conducted in May 2026. The amount, number of shares, and period of the acquisition framework are Not disclosed
Market Size / ShareMarket Size $78.3 billion in 2024 and $123.9 billion in 2034 (forecast) / Subject Global industrial valve market, Share 40% global share of valves for marine exhaust gas systems, Share Targeting a 50% global share of ammonia valves in fiscal 2030
New initiativesProduct price revisions in July 2026, Launch of ammonia valves in the market and establishment of mass-production capabilities in the fiscal year ending March 2027, Launch liquefied hydrogen valves in the market and establish mass-production capabilities in the fiscal year ending March 2030, Implementation of a new core business system, Transfer production of products to the China plant, Expansion of high-temperature fluid testing facilities, Creation of new businesses, including an IoT-based piping management system, Launch a specialist team for M&A and business alliances
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey 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.

Revenue from products such as exhaust-gas valves for the marine market was strong, while revenue from the land-based market declined due to smaller projects and the absence of the large projects recorded in the previous fiscal year. Profit was affected by higher cost of sales resulting from continued inflation, increases in selling, general and administrative expenses such as advertising and R&D expenses, and deterioration in foreign exchange gains and losses due to the weaker yen.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | OKUMURA ENGINEERING corp. (6229) timely disclosure | Komori