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Financial results presentation6247HISAKA WORKS,LTD.Machinery

Fiscal Year Ending March 2026 Financial Results and New Medium-Term Management Plan Presentation Materials

For the fiscal year ending March 2026, revenue and operating profit exceeded the previous fiscal year, and the company also achieved its forecast, while net income declined. The company presented its earnings forecast for the fiscal year ending March 2027 and its new medium-term management plan, Challenge2028, which targets the fiscal year ending March 2029.

Worth reading
63In 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
6537
¥ millions (year-on-year change in revenue for the fiscal year ending March 2026)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year14 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥44,890 million+17.0%
Operating profit¥3,303 million+12.7%
Ordinary income¥3,620 million+6.8%
Net income¥3,449 million-8.8%
Operating profit margin7.4 %
Full-year earnings forecast
Fiscal year ending March 2027
Orders received
¥47,000 million
Net Sales
¥44,000 million
Operating profit
¥3,300 million
Ordinary income
¥3,600 million
Profit attributable to owners of the parent
¥2,410 million
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。
Versus plan for the fiscal year ended March 2026
Orders received103.9%
Net Sales102.0%
Operating profit110.1%
Ordinary income108.1%
Profit attributable to owners of the parent128.2%
By segment
Heat Exchangers business
Orders received99.4%
Net Sales98.5%
Segment profit89.8%
Process Engineering business
Orders received109.9%
Net Sales105.2%
Segment profit115.1%
Valve business
Orders received98.6%
Net Sales101.6%
Segment profit122.3%
Other
Orders received72.1%
Net Sales72.1%
Segment profit105.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit and ordinary profit fell short of the plan, while net income attributable to owners of the parent exceeded the plan (review of the previous medium-term management plan)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Heat Exchangers business: large overseas energy-related projects, domestic maintenance projects, sluggish demand from the chemical and machinery industries, costs for restructuring the Konoike facility, and provisions made for sales strategy reasons
  • Process Engineering business: large projects for the food and pharmaceutical industries and Southeast Asia, and high-margin projects
  • Valves business: growth in water and sewage, confectionery, and civil engineering projects, sluggish demand from the chemical industry, and higher raw material prices
New initiatives
  • Formulation of the new medium-term management plan, Challenge2028
  • Setting the challenge of climate change as a management vision
  • Focused investment in CO2 capture and waste-heat recovery, environmentally conscious products, and energy-saving and labor-saving products
  • Developing new markets and applications, and creating new businesses
  • Strengthening core systems, utilizing AI, and enhancing KPI management
  • Improving domestic locations, expanding overseas locations, and investing in research and development and human resources
  • Total shareholder returns of ¥8.0 billion to ¥11.0 billion and reducing the ratio of cross-shareholdings to net assets to 15% or less
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥42,591 million
    Year on year against the same period last year0.8%
  • Overseas order intake¥9,640 million
    Year on year against the same period last year4.3%
  • Overseas revenue¥9,510 million
    Year on year against the same period last year2.1%
  • Order backlog¥25,036 million
    Year on year against the same period last year-8.4%
  • ROE5.6 %
  • PBR0.64 times
Segment results
Heat Exchangers business
Net Sales
¥17,229 million+6.7%
Segment profit
¥988 million-26.4%
Process Engineering business
Net Sales
¥22,405 million+30.6%
Segment profit
¥2,129 million+50.2%
Valve business
Net Sales
¥5,183 million+4.6%
Segment profit
¥366 million+25.3%
Other
Net Sales
¥72 million-18.3%
Segment profit
¥52 million-19.4%
Medium-term management plan targets
Plan nameChallenge2028
Target fiscal yearFiscal year ending March 2029
Orders received
¥54,000 million
Net Sales
¥55,000 million
Operating profit
¥5,000 million
Operating profit margin
9.1 %
ROIC
5.5 %
ROE
7 %
ROE for the fiscal year ending March 2031
At least 8.0%
Financial targets
ROE
Actual results for the fiscal year ending March 20265.6%
Target for the fiscal year ending March 20297.0%
Target for the fiscal year ending March 2031At least 8.0%
ROIC
Actual results for the fiscal year ending March 20263.4%
Target for the fiscal year ending March 20295.5%
PBR
TargetAiming to achieve at least 1x at an early stage
Cross-shareholdings-to-net-assets ratio
Target at the end of March 203115% or less at the end of March 2031
Orders received and order backlog
Orders received
¥42,591 million
Order backlog
¥25,036 million
Number of stores and locations
A list of domestic and overseas locations is provided, but the number of openings and closures during the period is not disclosed
Number of employees
1,063 People consolidated
Capital expenditures
¥3,000 millions plan for the fiscal year ending March 2027
Annual Dividend
Fiscal year ending March 2027
Annual
¥55 per share
Interim
¥27 per share
End of period
¥28 per share
Payout ratio
Forecast for the fiscal year ending March 202760 %
DOE2.3% (forecast)
Basic PolicyTargeting DOE of at least 2.0%
Acquisition of treasury shares
¥2.3 billion under the previous medium-term management plan. Total shareholder returns over the 3 years of Challenge2028 are ¥8.0 billion to ¥11.0 billion, but the specific amount and timing of share repurchases are not disclosed
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥44,890 million (YoY +17.0%)
Operating profit¥3,303 million (YoY +12.7%)
Ordinary income¥3,620 million (YoY +6.8%)
Net income¥3,449 million (YoY -8.8%)
Operating profit margin7.4 %
Full-year earnings forecastFiscal year ending March 2027 Orders received ¥47,000 million / Net Sales ¥44,000 million / Operating profit ¥3,300 million / Ordinary income ¥3,600 million / Profit attributable to owners of the parent ¥2,410 million
Progress against full-year forecastVersus plan for the fiscal year ended March 2026 Orders received 103.9% / Net Sales 102.0% / Operating profit 110.1% / Ordinary income 108.1% / Profit attributable to owners of the parent 128.2% / By segment Heat Exchangers business Orders received 99.4% / Net Sales 98.5% / Segment profit 89.8% / Process Engineering business Orders received 109.9% / Net Sales 105.2% / Segment profit 115.1% / Valve business Orders received 98.6% / Net Sales 101.6% / Segment profit 122.3% / Other Orders received 72.1% / Net Sales 72.1% / Segment profit 105.0%
Self-assessment against the planOperating profit and ordinary profit fell short of the plan, while net income attributable to owners of the parent exceeded the plan (review of the previous medium-term management plan)
Segment resultsHeat Exchangers business Net Sales ¥17,229 million (YoY +6.7%) / Segment profit ¥988 million (YoY -26.4%) / Process Engineering business Net Sales ¥22,405 million (YoY +30.6%) / Segment profit ¥2,129 million (YoY +50.2%) / Valve business Net Sales ¥5,183 million (YoY +4.6%) / Segment profit ¥366 million (YoY +25.3%) / Other Net Sales ¥72 million (YoY -18.3%) / Segment profit ¥52 million (YoY -19.4%)
Breakdown of Factors Affecting the ChangeHeat Exchangers business: large overseas energy-related projects, domestic maintenance projects, sluggish demand from the chemical and machinery industries, costs for restructuring the Konoike facility, and provisions made for sales strategy reasons, Process Engineering business: large projects for the food and pharmaceutical industries and Southeast Asia, and high-margin projects, Valves business: growth in water and sewage, confectionery, and civil engineering projects, sluggish demand from the chemical industry, and higher raw material prices
Key KPIsOrders received ¥42,591 million, Overseas order intake ¥9,640 million, Overseas revenue ¥9,510 million, Order backlog ¥25,036 million, ROE 5.6 %, PBR 0.64 times
Number of stores and locationsA list of domestic and overseas locations is provided, but the number of openings and closures during the period is not disclosed
Number of employees1,063 People (consolidated)
Medium-term management plan targetsPlan name Challenge2028 / Target fiscal year Fiscal year ending March 2029 / Orders received ¥54,000 million / Net Sales ¥55,000 million / Operating profit ¥5,000 million / Operating profit margin 9.1 % / ROIC 5.5 % / ROE 7 % / ROE for the fiscal year ending March 2031 At least 8.0%
Financial targetsROE Actual results for the fiscal year ending March 2026 5.6% / Target for the fiscal year ending March 2029 7.0% / Target for the fiscal year ending March 2031 At least 8.0% / ROIC Actual results for the fiscal year ending March 2026 3.4% / Target for the fiscal year ending March 2029 5.5% / PBR Target Aiming to achieve at least 1x at an early stage / Cross-shareholdings-to-net-assets ratio Target at the end of March 2031 15% or less at the end of March 2031
Annual DividendFiscal year ending March 2027 Annual ¥55 per share / Interim ¥27 per share / End of period ¥28 per share
Payout ratioForecast for the fiscal year ending March 2027 60 % / DOE 2.3% (forecast) / Basic Policy Targeting DOE of at least 2.0%
Acquisition of treasury shares¥2.3 billion under the previous medium-term management plan. Total shareholder returns over the 3 years of Challenge2028 are ¥8.0 billion to ¥11.0 billion, but the specific amount and timing of share repurchases are not disclosed
Capital expenditures¥3,000 millions (plan for the fiscal year ending March 2027)
Orders received and order backlogOrders received ¥42,591 million / Order backlog ¥25,036 million
New initiativesFormulation of the new medium-term management plan, Challenge2028, Setting the challenge of climate change as a management vision, Focused investment in CO2 capture and waste-heat recovery, environmentally conscious products, and energy-saving and labor-saving products, Developing new markets and applications, and creating new businesses, Strengthening core systems, utilizing AI, and enhancing KPI management, Improving domestic locations, expanding overseas locations, and investing in research and development and human resources, Total shareholder returns of ¥8.0 billion to ¥11.0 billion and reducing the ratio of cross-shareholdings to net assets to 15% or less
Items this document does not state (8)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMarket Size / ShareKey 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.

Large projects for the food and pharmaceutical industries and other customers contributed to revenue in the Process Engineering business, while the recording of high-margin projects increased profit. In the Heat Exchangers business, costs for restructuring the Konoike facility and provisions made for sales strategy reasons weighed on profit, while higher raw material prices reduced profit in the Valves business. The decline in net income was attributed in part to the absence of gains on the sale of shares recorded in the previous fiscal year.

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Fiscal Year Ending March 2026 Financial Results and New Medium-Term Management Plan Presentation Materials | HISAKA WORKS,LTD. (6247) timely disclosure | Komori