Worth reading
66In 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
-631
¥ million (year-on-year change in consolidated revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFiscal year ending March 202616 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥32,864 million-1.9%
Operating profit¥1,728 million-10.0%
Ordinary income¥1,697 million-11.7%
Net income¥1,044 million-16.4%
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥34,500 million
Operating profit
¥1,750 million
Ordinary income
¥1,700 million
Net income
¥1,000 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The company believes sales are progressing steadily toward the target. Profitability, however, needs to be improved.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
The presentation includes answers to questions from previous presentations. It discusses increased production in India, the gear pump plant, capital investment in Japan, the mobile business under the medium-term plan, and expansion in the US market.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Ordinary income for the fiscal year ended March 2026
Revenue decline-167
Deterioration in cost of sales ratio-201
Decrease in SG&A expenses176
Foreign Exchange Effects14
Other-48
Forecast ordinary profit for the fiscal year ending March 2027
Increase in sales423
Deterioration in cost of sales ratio-116
Increase in selling, general and administrative expenses-286
Other-18
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rateUSD 1 = ¥150.00 (internal exchange rate for the fiscal year ending March 2027)
Number of versionsThe company expects the Chinese market to recover after inventory adjustments and revenue in India to increase on a rebound from the previous fiscal year.
Raw Materials and Labor CostsAssumes continued increases
New initiatives
- Capital increase in YUKEN INDIA and investment to strengthen production capacity and quality
- Making JPN Co., Ltd. a subsidiary in October 2025
- Converting the Indian facility into a dedicated gear pump plant and adding a third production line at GROTEK
- Producing the DSG-01 series at 2 sites in Japan and India and launching it in April 2027
- Development of a high-efficiency variable-displacement piston pump
- Capital investment of ¥2,100 million in the fiscal year ending March 2027
Key KPIsA metric the company considers important as a management benchmark.
- Overseas Revenue Mix61.3 %
- ROE4.4 %Year on year against the same period last yearDown from 5.4% in the previous fiscal year
- Equity ratio48.3 %
- Dividend payout ratio52.7 %
- Total Payout Ratio52.7 %
- CO2 emissions reduction rate11.4 % versus the fiscal year ended March 2022
Segment results
Not disclosed (regional revenue is provided)Medium-term management plan targets
Target fiscal yearFiscal year ending March 2028
Net Sales¥37.0 billion
Operating profit¥3 billion
Ordinary income¥3 billion
ROE8% or higher
Overseas Revenue Mix65% or higher
Capital expenditure¥10 billion
Development Investment¥2.5 billion
Environmental Investment¥100 million
Comparison with actual resultsFiscal year ended March 2026 results: revenue of ¥32.8 billion, operating profit of ¥1.72 billion, ordinary profit of ¥1.69 billion, ROE of 4.4%, and an overseas sales ratio of 61.3%.
Financial targets
Debt-to-equity ratio0.46x
Net debt-to-equity ratio0.12x
Equity ratio
Target40.0% or higher
Actual results48.3%
ROE
TargetAt least 8.0%
Actual results4.4%
Market Size / Share
Total shipments of hydraulic equipment by demand sector: ¥355,274 million for the fiscal year ended March 2026 and a projected ¥370,590 million for the fiscal year ending March 2027.
Number of stores and locations
End of periodThe company has 2 major production sites in Japan and 3 overseas. It has 8 sales locations in Japan.
Number of employees
Consolidated1,401 People
Standalone368 People
YUKEN INDIA, IndiaApproximately 500 people
JPNApproximately 40 people
Capital expenditures
¥2,100 millions plan for the fiscal year ending March 2027
Annual Dividend
Fiscal year ending March 2026¥150 (interim ¥60, year-end ¥90)
Forecast for the fiscal year ending March 2027¥150 (interim ¥60, year-end ¥90)
Payout ratio
52.7% for the fiscal year ended March 2026 and an estimated 53.3% for the fiscal year ending March 2027. The company uses a payout ratio of approximately 50% as its guideline.Acquisition of treasury shares
No share repurchases are currently planned in connection with the fiscal year ended March 2026 results. In connection with the fiscal year ending March 2027 results, the company plans to conduct repurchases with a target total payout ratio of 70%.| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥32,864 million (YoY -1.9%) |
| Operating profit | ¥1,728 million (YoY -10.0%) |
| Ordinary income | ¥1,697 million (YoY -11.7%) |
| Net income | ¥1,044 million (YoY -16.4%) |
| Full-year earnings forecast | Subject Fiscal year ending March 2027 / Net Sales ¥34,500 million / Operating profit ¥1,750 million / Ordinary income ¥1,700 million / Net income ¥1,000 million |
| Self-assessment against the plan | The company believes sales are progressing steadily toward the target. Profitability, however, needs to be improved. |
| Segment results | Not disclosed (regional revenue is provided) |
| Breakdown of Factors Affecting the Change | Ordinary income for the fiscal year ended March 2026 Revenue decline -167 / Deterioration in cost of sales ratio -201 / Decrease in SG&A expenses 176 / Foreign Exchange Effects 14 / Other -48 / Forecast ordinary profit for the fiscal year ending March 2027 Increase in sales 423 / Deterioration in cost of sales ratio -116 / Increase in selling, general and administrative expenses -286 / Other -18 |
| Key KPIs | 61.3 %, 4.4 %, 48.3 %, 52.7 %, 52.7 %, 11.4 % (versus the fiscal year ended March 2022) |
| Number of stores and locations | End of period The company has 2 major production sites in Japan and 3 overseas. It has 8 sales locations in Japan. / Number of store openings and closures during the period Not disclosed |
| Number of employees | Consolidated 1,401 People / Standalone 368 People / YUKEN INDIA, India Approximately 500 people / JPN Approximately 40 people / Changes during the period and hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Exchange rate USD 1 = ¥150.00 (internal exchange rate for the fiscal year ending March 2027) / Number of versions The company expects the Chinese market to recover after inventory adjustments and revenue in India to increase on a rebound from the previous fiscal year. / Raw Materials and Labor Costs Assumes continued increases |
| Medium-term management plan targets | Target fiscal year Fiscal year ending March 2028 / Net Sales ¥37.0 billion / Operating profit ¥3 billion / Ordinary income ¥3 billion / ROE 8% or higher / Overseas Revenue Mix 65% or higher / Capital expenditure ¥10 billion / Development Investment ¥2.5 billion / Environmental Investment ¥100 million / Comparison with actual results Fiscal year ended March 2026 results: revenue of ¥32.8 billion, operating profit of ¥1.72 billion, ordinary profit of ¥1.69 billion, ROE of 4.4%, and an overseas sales ratio of 61.3%. |
| Financial targets | Debt-to-equity ratio 0.46x / Net debt-to-equity ratio 0.12x / Equity ratio Target 40.0% or higher / Actual results 48.3% / ROE Target At least 8.0% / Actual results 4.4% |
| Annual Dividend | Fiscal year ending March 2026 ¥150 (interim ¥60, year-end ¥90) / Forecast for the fiscal year ending March 2027 ¥150 (interim ¥60, year-end ¥90) |
| Payout ratio | 52.7% for the fiscal year ended March 2026 and an estimated 53.3% for the fiscal year ending March 2027. The company uses a payout ratio of approximately 50% as its guideline. |
| Acquisition of treasury shares | No share repurchases are currently planned in connection with the fiscal year ended March 2026 results. In connection with the fiscal year ending March 2027 results, the company plans to conduct repurchases with a target total payout ratio of 70%. |
| Capital expenditures | ¥2,100 millions (plan for the fiscal year ending March 2027) |
| Market Size / Share | Market Size Total shipments of hydraulic equipment by demand sector: ¥355,274 million for the fiscal year ended March 2026 and a projected ¥370,590 million for the fiscal year ending March 2027. / Share Not disclosed |
| Key points of the Q&A | The presentation includes answers to questions from previous presentations. It discusses increased production in India, the gear pump plant, capital investment in Japan, the mobile business under the medium-term plan, and expansion in the US market. |
| New initiatives | Capital increase in YUKEN INDIA and investment to strengthen production capacity and quality, Making JPN Co., Ltd. a subsidiary in October 2025, Converting the Indian facility into a dedicated gear pump plant and adding a third production line at GROTEK, Producing the DSG-01 series at 2 sites in Japan and India and launching it in April 2027, Development of a high-efficiency variable-displacement piston pump, Capital investment of ¥2,100 million in the fiscal year ending March 2027 |
Items this document does not state (8)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsRisk amount incorporated into the outlookOrders received and order backlog
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.Lower sales in China due to deflation, the impact on Taiwan, and lower sales in India due to political turmoil in the first half were the factors behind the revenue decline. Operating profit fell because of the sluggish Chinese market and lower sales in India, while ordinary profit declined mainly because of higher interest expenses.
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.
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