Worth reading
75Important
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
25038
Millions of yen (year-on-year change in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFiscal year ended March 2026 (full-year results) and fiscal year ending March 2027 (full-year forecast)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥84,240 million+42.3%
Operating profit¥9,181 million+61.2%
Ordinary income¥9,462 million+68.2%
Net income¥7,546 million +54.7%net income attributable to owners of the parent
Selling, general and administrative expenses¥9,082 million; selling, general and administrative expenses as a percentage of revenue: 10.8%
Gross Profit Margin21.7% (gross margin calculated from a cost of sales ratio of 78.3%; approximately 22.3% in the same period of the previous year, a decline of approximately 0.6 percentage points)
Operating profit margin10.9%, up 1.3 percentage points year on year (from 9.6%)
Full-year earnings forecastFiscal year ending March 2027: orders received ¥81,000 million, revenue ¥80,000 million, operating income ¥8,800 million, ordinary income ¥8,900 million, net income attributable to owners of the parent ¥6,850 million, annual dividend ¥120 per share
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
For the fiscal year ended March 2026, orders received, revenue and operating income broadly achieved the targets for the first year of the medium-term management plan. Operating income achieved plan in every business, substantially exceeding the overall plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue increase: steady progress on large-scale construction projects and strong sales of marine equipment and parts. Operating income increase: higher gross profit resulting from increased revenue, cost improvements on completed construction projects in the Engineering Business, and after-sales service parts and construction work in the Standalone Machinery Business. Increase in selling, general and administrative expenses: salaries and bonuses +¥362 million, estimate and design costs +¥47 million, research and development expenses +¥305 million, sales commissions +¥34 million, advertising expenses +¥93 million, depreciation and amortization +¥102 million, other +¥626 million.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Multiple large-scale projects will be completed in the first half, a high order backlog in the Engineering and GX Businesses, strong sales of marine equipment and parts, demand for semiconductor materials-related and chemical plants, favorable conditions in the shipbuilding and marine transportation markets, and orders for hydrogen utilization and biogas projectsNew initiatives
Updating the management vision; expanding hydrogen and algae utilization projects in the GX Business; developing SJ Series applications for SAF and microalgae; acquisition of shares in 日誠工業 by MKK東北; investment in the Japan Hydrogen Fund; investment in 日本水素エネルギー; reorganization of the Kawasaki Works; establishment of the Production Strategy Planning Office; adoption of AI and factory DX; and strengthening IR and SR activitiesKey KPIsA metric the company considers important as a management benchmark.
Orders received ¥71,332 million (up 10% year on year), order backlog: Engineering ¥38,697 million, Standalone Machinery ¥10,640 million, GX ¥41,504 million, equity ratio 57.5% (57.8% at the end of the same period of the previous year), PBR 1.5x, average daily trading volume 262 thousand shares, company-wide productivity ¥80 million per employee, GX Business revenue ¥18.3 billionSegment results
Engineering Business: orders received ¥30,698 million (down 22.8% year on year), revenue ¥45,747 million (up 25.2%), segment profit ¥3,124 million (up 92.8%), order backlog ¥38,697 million (down 28.0% from the end of the previous fiscal year). Standalone Machinery Business: orders received ¥20,659 million (up 3.1%), revenue ¥20,170 million (up 13.6%), segment profit ¥5,410 million (up 32.1%), order backlog ¥10,640 million (up 4.8%). GX Business: orders received ¥19,974 million (up 290.9%), revenue ¥18,322 million (up 273.0%), segment profit ¥645 million (compared with a ¥22 million loss in the previous year, returning to profitability), order backlog ¥41,504 million (up 4.1%).Medium-term management plan targets
Fiscal year ending March 2027: orders received ¥80 billion, revenue ¥77 billion, operating income ¥7.5 billion. Fiscal year ended March 2026 results: orders received ¥71.3 billion, revenue ¥84.2 billion, operating income ¥9.1 billion. The consolidated revenue target for fiscal 2035 has been raised from ¥100 billion to ¥120–140 billion, and the expected timing for reaching ¥100 billion has been brought forward from fiscal 2035 to fiscal 2029.Financial targets
Medium-term management plan operating margin targets: 8.9% for the fiscal year ending March 2026 and 9.7% for the fiscal year ending March 2027; actual operating margin for the fiscal year ended March 2026: 10.9%. ROE: 13.4% for the fiscal year ended March 2026, 12.2% for the fiscal year ending March 2027, and a target of 14.6% for the fiscal year ending March 2028.Market Size / Share
Share of the domestic marine oil purifier market: more than 90%; global share: more than 50% (according to the company)Orders received and order backlog
Orders received ¥71,332 million; order backlog: Engineering ¥38,697 million, Standalone Machinery ¥10,640 million, GX ¥41,504 millionNumber of employees
Consolidated employees: 1,044 (at the end of fiscal 2025; 1,017 at the end of the previous fiscal year). Medium-term management plan targets: 1,200 employees by the end of fiscal 2027 and at least 1,300 by the end of fiscal 2035.Annual Dividend
Fiscal year ending March 2026: ¥115 per share (planned); fiscal year ending March 2027: ¥120 per share (forecast)Payout ratio
35% for the fiscal year ending March 2026 and 40% for the fiscal year ending March 2027. DOE floor: 3.5%.| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ended March 2026 (full-year results) and fiscal year ending March 2027 (full-year forecast) |
| Net Sales | ¥84,240 million (YoY +42.3%) |
| Operating profit | ¥9,181 million (YoY +61.2%) |
| Ordinary income | ¥9,462 million (YoY +68.2%) |
| Net income | ¥7,546 million (net income attributable to owners of the parent) (YoY +54.7%) |
| Gross Profit Margin | 21.7% (gross margin calculated from a cost of sales ratio of 78.3%; approximately 22.3% in the same period of the previous year, a decline of approximately 0.6 percentage points) |
| Operating profit margin | 10.9%, up 1.3 percentage points year on year (from 9.6%) |
| Selling, general and administrative expenses | ¥9,082 million; selling, general and administrative expenses as a percentage of revenue: 10.8% |
| Full-year earnings forecast | Fiscal year ending March 2027: orders received ¥81,000 million, revenue ¥80,000 million, operating income ¥8,800 million, ordinary income ¥8,900 million, net income attributable to owners of the parent ¥6,850 million, annual dividend ¥120 per share |
| Self-assessment against the plan | For the fiscal year ended March 2026, orders received, revenue and operating income broadly achieved the targets for the first year of the medium-term management plan. Operating income achieved plan in every business, substantially exceeding the overall plan. |
| Segment results | Engineering Business: orders received ¥30,698 million (down 22.8% year on year), revenue ¥45,747 million (up 25.2%), segment profit ¥3,124 million (up 92.8%), order backlog ¥38,697 million (down 28.0% from the end of the previous fiscal year). Standalone Machinery Business: orders received ¥20,659 million (up 3.1%), revenue ¥20,170 million (up 13.6%), segment profit ¥5,410 million (up 32.1%), order backlog ¥10,640 million (up 4.8%). GX Business: orders received ¥19,974 million (up 290.9%), revenue ¥18,322 million (up 273.0%), segment profit ¥645 million (compared with a ¥22 million loss in the previous year, returning to profitability), order backlog ¥41,504 million (up 4.1%). |
| Breakdown of Factors Affecting the Change | Revenue increase: steady progress on large-scale construction projects and strong sales of marine equipment and parts. Operating income increase: higher gross profit resulting from increased revenue, cost improvements on completed construction projects in the Engineering Business, and after-sales service parts and construction work in the Standalone Machinery Business. Increase in selling, general and administrative expenses: salaries and bonuses +¥362 million, estimate and design costs +¥47 million, research and development expenses +¥305 million, sales commissions +¥34 million, advertising expenses +¥93 million, depreciation and amortization +¥102 million, other +¥626 million. |
| Key KPIs | Orders received ¥71,332 million (up 10% year on year), order backlog: Engineering ¥38,697 million, Standalone Machinery ¥10,640 million, GX ¥41,504 million, equity ratio 57.5% (57.8% at the end of the same period of the previous year), PBR 1.5x, average daily trading volume 262 thousand shares, company-wide productivity ¥80 million per employee, GX Business revenue ¥18.3 billion |
| Number of employees | Consolidated employees: 1,044 (at the end of fiscal 2025; 1,017 at the end of the previous fiscal year). Medium-term management plan targets: 1,200 employees by the end of fiscal 2027 and at least 1,300 by the end of fiscal 2035. |
| Assumptions Underlying the Business Outlook | Multiple large-scale projects will be completed in the first half, a high order backlog in the Engineering and GX Businesses, strong sales of marine equipment and parts, demand for semiconductor materials-related and chemical plants, favorable conditions in the shipbuilding and marine transportation markets, and orders for hydrogen utilization and biogas projects |
| Medium-term management plan targets | Fiscal year ending March 2027: orders received ¥80 billion, revenue ¥77 billion, operating income ¥7.5 billion. Fiscal year ended March 2026 results: orders received ¥71.3 billion, revenue ¥84.2 billion, operating income ¥9.1 billion. The consolidated revenue target for fiscal 2035 has been raised from ¥100 billion to ¥120–140 billion, and the expected timing for reaching ¥100 billion has been brought forward from fiscal 2035 to fiscal 2029. |
| Financial targets | Medium-term management plan operating margin targets: 8.9% for the fiscal year ending March 2026 and 9.7% for the fiscal year ending March 2027; actual operating margin for the fiscal year ended March 2026: 10.9%. ROE: 13.4% for the fiscal year ended March 2026, 12.2% for the fiscal year ending March 2027, and a target of 14.6% for the fiscal year ending March 2028. |
| Annual Dividend | Fiscal year ending March 2026: ¥115 per share (planned); fiscal year ending March 2027: ¥120 per share (forecast) |
| Payout ratio | 35% for the fiscal year ending March 2026 and 40% for the fiscal year ending March 2027. DOE floor: 3.5%. |
| Orders received and order backlog | Orders received ¥71,332 million; order backlog: Engineering ¥38,697 million, Standalone Machinery ¥10,640 million, GX ¥41,504 million |
| Market Size / Share | Share of the domestic marine oil purifier market: more than 90%; global share: more than 50% (according to the company) |
| New initiatives | Updating the management vision; expanding hydrogen and algae utilization projects in the GX Business; developing SJ Series applications for SAF and microalgae; acquisition of shares in 日誠工業 by MKK東北; investment in the Japan Hydrogen Fund; investment in 日本水素エネルギー; reorganization of the Kawasaki Works; establishment of the Production Strategy Planning Office; adoption of AI and factory DX; and strengthening IR and SR activities |
Items this document does not state (8)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresKey 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.For the fiscal year ended March 2026, results benefited from steady progress on large-scale construction projects ordered by the previous fiscal year, strong sales of marine equipment and parts, cost improvements on completed construction projects, and after-sales service parts and construction work in the Standalone Machinery Business. For the fiscal year ending March 2027, revenue is expected to decline as multiple large-scale projects are completed in the first half, while a high order backlog and strong sales of marine equipment and parts are expected to provide support.
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