Worth reading
90Important
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
2600
¥ million (increase from the forecast for the fiscal year ending December 2026 to the target for the fiscal year ending December 2029)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+13.9%
基準 165,000Target188,000million
Operating profit+76.5%
基準 3,400Target6,000million
Operating profit margin+1.1pt
基準 2.1Target3.2%
Net income for the current fiscal year+96.2%
基準 2,100Target4,120million
ROE+3.1pt
基準 2.9Target6%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planInitial target for the fiscal year ending December 2026: revenue of ¥200,000 million, operating income of ¥10,000 million (operating margin of 5.0%), adjusted EBITDA of ¥11,500 million, and ROE of 8.5% → Forecast for the fiscal year ending December 2026: revenue of ¥165,000 million, operating income of ¥3,400 million (operating margin of 2.1%), adjusted EBITDA of ¥4,500 million, and ROE of 2.9%（Revenue: down 17.5%; operating income: down 66.0%; adjusted EBITDA: down 60.9%; ROE: down 65.9%）-17.5%Calculated from the two disclosed figures
Total investment planUp to approximately ¥40 billion (during the new medium-term plan period)
Investment amount by sectorField Investments to increase corporate value (M&A and additional share buybacks) / Amount Approximately ¥22 billion, Field Shareholder Returns / Amount Approximately ¥18 billion, Field Business investment and talent investment / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDuring the new medium-term plan period, regular dividends will be based on a DOE (dividend on equity) floor of 3.5%, with a payout ratio of 100%. Total shareholder returns will be approximately ¥18 billion, and measures that can be brought forward will begin in the fiscal year ending December 2026.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe company expects to conduct approximately ¥6 billion in share buybacks. If it determines that suitable M&A opportunities meeting its criteria cannot be secured and that surplus funds will arise and remain idle, it will flexibly conduct additional share buybacks.
Cost of capitalCost of equity: 7%–8%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR was 0.75x in the fiscal year ended December 2025, below the 1x level. The company recognizes that it is an urgent priority to achieve ROE above its cost of equity through improvements in profitability and its balance sheet, and to restore market valuation.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Deepen existing markets and improve business-model efficiency
02Develop untapped regions and industries
03Differentiate through higher value-added products and solutions
04Optimizing the Business Portfolio
05Purposeful balance-sheet management to achieve the ROE target
06Accelerate and maximize post-integration synergies
07Human Resources Strategy
08DX Strategy
09ESG Strategy
Plan assumptionsThe company recognizes that domestic machine-tool demand has deteriorated by 25% from the level assumed when the plan was formulated, while demand for steel structures has declined by 16%. It expects a certain recovery in steel-structure demand during the new medium-term plan period, but believes that a structural contraction in market size cannot be avoided.
Segment targetSegment Machines and tools / Net Sales ¥122,900 million / Operating profit ¥3,630 million / Operating profit margin 3.0% / Fiscal year Fiscal year ending December 2029, Segment Construction materials / Net Sales ¥49,100 million / Operating profit ¥1,830 million / Operating profit margin 3.7% / Fiscal year Fiscal year ending December 2029, Segment Construction machinery / Net Sales ¥10,200 million / Operating profit ¥280 million / Operating profit margin 2.7% / Fiscal year Fiscal year ending December 2029, Segment IoT Solutions / Net Sales ¥5,800 million / Operating profit ¥430 million / Operating profit margin 7.4% / Fiscal year Fiscal year ending December 2029
Non-financial targetsIndicator Scope 1 and 2 emissions / Target value 5,473 t-CO2e (down 3,228 t-CO2e from 2022) / Timing Fiscal year ending December 2029, Indicator Revenue from priority initiatives in environmental energy conservation, automation and labor saving / Target value At least 3.0x the 2025 level / Timing Fiscal year ending December 2029, Indicator Percentage of Female Managers / Target value At least 5.5% / Timing Fiscal year ending December 2029, Indicator Number of foreign-national employees / Target value At least 35 / Timing Fiscal year ending December 2029, Indicator Percentage of hires with science and engineering backgrounds / Target value 16% or higher / Timing Fiscal year ending December 2029, Indicator Male employees taking parental leave / duration / Target value 85% / at least 1 month / Timing Fiscal year ending December 2029, Indicator Compliance training completion rate / Target value 100% / Timing Continuing
Size of the Target MarketEstimated steel-structure demand was 4.42 million tonnes in 2022, 3.91 million tonnes in 2023, 3.75 million tonnes in 2024, and 3.43 million tonnes in 2025. No source was provided; the figures were converted on a calendar-year basis using the total floor area of building starts. The document states that domestic machine-tool demand declined by 25% and steel-structure demand by 16%.
Risks identified by the company
Contraction in markets such as domestic machine-tool demand and steel-structure demand
Changes in external conditions in the automotive sectors in China and Southeast Asia
Stagnation in capital-investment projects due to the impact of U.S. tariffs
Sluggish construction demand and intensifying competition
Intensifying competition due to the influx of inexpensive, high-function overseas products
Labor shortages and rising personnel and logistics costs
Price competition in IoT solutions due to the influx of Chinese products
Shortage of personnel with expertise in advanced technologies such as AI and software
Risk management and governance challenges arising from an increase in group companies following M&A
Reason for revision or withdrawal
The primary factors were deterioration in the profitability of existing businesses due to worsening external conditions and higher expenses, including personnel costs. The company cited weaker domestic machine-tool demand and steel-structure demand, greater-than-expected changes in the automotive sectors in China and Southeast Asia, stagnation in capital-investment projects due to the impact of U.S. tariffs, and sluggish construction demand and intensifying competition.
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Plan “UNISOL Ⅱ” |
| Plan period | 2027–2029 |
| Progress against the plan | Formulated |
| Sales Target | ¥165,000 million → ¥188,000 million（+13.9%） |
| Operating profit target | ¥3,400 million → ¥6,000 million（+76.5%） |
| Operating profit margin target | 2.1 % → 3.2 %（+52.4%） |
| Net income target | ¥2,100 million → ¥4,120 million（+96.2%） |
| ROE target | 2.9 % → 6.0 or higher（+106.9% or higher） |
| Payout ratio / DOE policy | During the new medium-term plan period, regular dividends will be based on a DOE (dividend on equity) floor of 3.5%, with a payout ratio of 100%. Total shareholder returns will be approximately ¥18 billion, and measures that can be brought forward will begin in the fiscal year ending December 2026. |
| Treasury share acquisition policy | The company expects to conduct approximately ¥6 billion in share buybacks. If it determines that suitable M&A opportunities meeting its criteria cannot be secured and that surplus funds will arise and remain idle, it will flexibly conduct additional share buybacks. |
| Cost of capital | Cost of equity: 7%–8% |
| Self-assessment of PBR and share price | PBR was 0.75x in the fiscal year ended December 2025, below the 1x level. The company recognizes that it is an urgent priority to achieve ROE above its cost of equity through improvements in profitability and its balance sheet, and to restore market valuation. |
| Total investment plan | Up to approximately ¥40 billion (during the new medium-term plan period) |
| Investment amount by sector | Field Investments to increase corporate value (M&A and additional share buybacks) / Amount Approximately ¥22 billion, Field Shareholder Returns / Amount Approximately ¥18 billion, Field Business investment and talent investment / Amount Not disclosed |
| Segment target | Segment Machines and tools / Net Sales ¥122,900 million / Operating profit ¥3,630 million / Operating profit margin 3.0% / Fiscal year Fiscal year ending December 2029, Segment Construction materials / Net Sales ¥49,100 million / Operating profit ¥1,830 million / Operating profit margin 3.7% / Fiscal year Fiscal year ending December 2029, Segment Construction machinery / Net Sales ¥10,200 million / Operating profit ¥280 million / Operating profit margin 2.7% / Fiscal year Fiscal year ending December 2029, Segment IoT Solutions / Net Sales ¥5,800 million / Operating profit ¥430 million / Operating profit margin 7.4% / Fiscal year Fiscal year ending December 2029 |
| Non-financial targets | Indicator Scope 1 and 2 emissions / Target value 5,473 t-CO2e (down 3,228 t-CO2e from 2022) / Timing Fiscal year ending December 2029, Indicator Revenue from priority initiatives in environmental energy conservation, automation and labor saving / Target value At least 3.0x the 2025 level / Timing Fiscal year ending December 2029, Indicator Percentage of Female Managers / Target value At least 5.5% / Timing Fiscal year ending December 2029, Indicator Number of foreign-national employees / Target value At least 35 / Timing Fiscal year ending December 2029, Indicator Percentage of hires with science and engineering backgrounds / Target value 16% or higher / Timing Fiscal year ending December 2029, Indicator Male employees taking parental leave / duration / Target value 85% / at least 1 month / Timing Fiscal year ending December 2029, Indicator Compliance training completion rate / Target value 100% / Timing Continuing |
| Plan assumptions | The company recognizes that domestic machine-tool demand has deteriorated by 25% from the level assumed when the plan was formulated, while demand for steel structures has declined by 16%. It expects a certain recovery in steel-structure demand during the new medium-term plan period, but believes that a structural contraction in market size cannot be avoided. |
| Key initiatives | Deepen existing markets and improve business-model efficiency, Develop untapped regions and industries, Differentiate through higher value-added products and solutions, Optimizing the Business Portfolio, Purposeful balance-sheet management to achieve the ROE target, Accelerate and maximize post-integration synergies, Human Resources Strategy, DX Strategy, ESG Strategy |
| Results under the previous plan | Initial target for the fiscal year ending December 2026: revenue of ¥200,000 million, operating income of ¥10,000 million (operating margin of 5.0%), adjusted EBITDA of ¥11,500 million, and ROE of 8.5% → Forecast for the fiscal year ending December 2026: revenue of ¥165,000 million, operating income of ¥3,400 million (operating margin of 2.1%), adjusted EBITDA of ¥4,500 million, and ROE of 2.9%（Revenue: down 17.5%; operating income: down 66.0%; adjusted EBITDA: down 60.9%; ROE: down 65.9%） |
| Reason for revision or withdrawal | The primary factors were deterioration in the profitability of existing businesses due to worsening external conditions and higher expenses, including personnel costs. The company cited weaker domestic machine-tool demand and steel-structure demand, greater-than-expected changes in the automotive sectors in China and Southeast Asia, stagnation in capital-investment projects due to the impact of U.S. tariffs, and sluggish construction demand and intensifying competition. |
| Size of the Target Market | Estimated steel-structure demand was 4.42 million tonnes in 2022, 3.91 million tonnes in 2023, 3.75 million tonnes in 2024, and 3.43 million tonnes in 2025. No source was provided; the figures were converted on a calendar-year basis using the total floor area of building starts. The document states that domestic machine-tool demand declined by 25% and steel-structure demand by 16%. |
| Risks identified | Contraction in markets such as domestic machine-tool demand and steel-structure demand, Changes in external conditions in the automotive sectors in China and Southeast Asia, Stagnation in capital-investment projects due to the impact of U.S. tariffs, Sluggish construction demand and intensifying competition, Intensifying competition due to the influx of inexpensive, high-function overseas products, Labor shortages and rising personnel and logistics costs, Price competition in IoT solutions due to the influx of Chinese products, Shortage of personnel with expertise in advanced technologies such as AI and software, Risk management and governance challenges arising from an increase in group companies following M&A |
| Publication date | July 2026 |
Items this document does not state (2)
ROIC targetDate of board resolution
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.Based on the progress and review of the current medium-term plan, the company aims to respond promptly to changes in the market environment and present its growth strategy and plans to improve capital efficiency at an early stage. In addition, in light of deteriorating profitability in existing businesses due to worsening external conditions and higher expenses, including personnel costs, it intends to strengthen its earnings base through structural reform and shift toward higher value-added offerings.
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