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Financial results presentation7721TOKYO KEIKI INC.Electrical Equipment and Precision Instruments

TOKYO KEIKI INC. Fiscal Year Ending March 2026 Earnings Presentation

For the fiscal year ended March 2026, revenue and operating profit increased, led by the Defense and Communications Equipment business, and operating profit reached a record high for the second consecutive fiscal year. For the fiscal year ending March 2027, the company is targeting record-high revenue and operating profit and has raised its operating profit forecast from the previous forecast.

Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
1038
¥ million (year-on-year increase in operating profit for the fiscal year ending March 2027)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ended March 2026 (with forecasts for the fiscal year ending March 2027 also shown)10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥61,186 million+6.1%
Operating profit¥5,362 million+10.4%
Ordinary income¥5,492 million+9.8%
Net income¥4,005 million+5.5%
Operating profit margin8.8 %
Results for the three months of the current quarter
Fourth quarter of the fiscal year ended March 2026
Net Sales
¥21,438 million
Operating profit
¥3,324 million
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥68,300 million
Operating profit
¥6,400 million
Ordinary income
¥6,510 million
Net income
¥5,000 million
Operating Margin
9.4 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit, fiscal year ended March 2026
Increase in revenue971
Improvement in cost ratio528
Foreign Exchange Effects-42
Increase in selling, general and administrative expenses-783
Increase in Research and Development Expenses-167
Operating income forecast for the fiscal year ending March 2027
Increase in revenue2,010
Increase in cost ratio-482
Foreign Exchange Effects9
Increase in selling, general and administrative expenses-4
Increase in Research and Development Expenses-494
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • USD exchange rate151 JPY/USD
  • USD foreign exchange sensitivity¥20 million impact on operating profit per ¥1 depreciation of the yen, Q1-Q4
New initiatives
  • Demonstration and commercial deployment of navigation control functions for autonomous vessels
  • Investment in Logic and Design Co., Ltd. and development of AI camera products using image-enhancement technology
  • R&D into growth drivers including space, hydrogen and edge AI
  • Capital investment for the Defense business and the renewal and enhancement of core systems
Key KPIsA metric the company considers important as a management benchmark.
  • Order backlog at period-end¥59,875 million
    Year-on-year (%)6.1
  • Orders received¥64,653 million
    Year-on-year (%)-6.8
  • ROE9.3 %
    Year-on-year_pt-0.5
  • ROA6.8 %
    Year-on-year_pt-0.2
  • EPS¥243.75
    Year-on-year (%)5.5
Segment results
Marine and port equipment
Net Sales
¥13,675 million
Revenue year-on-year_pct9.1
Operating profit
¥1,317 million
Operating profit year-on-year_pct-15.1
Oil-hydraulic and pneumatic equipment
Net Sales
¥11,836 million
Revenue year-on-year_pct3.3
Operating profit
¥222 million
Operating profit year-on-year_pct12.7
Fluid equipment
Net Sales
¥5,410 million
Revenue year-on-year_pct7.8
Operating profit
¥873 million
Operating profit year-on-year_pct10.6
Defense and communications equipment
Net Sales
¥26,015 million
Revenue year-on-year_pct6.6
Operating profit
¥2,344 million
Operating profit year-on-year_pct43.3
Other
Net Sales
¥4,249 million
Revenue year-on-year_pct0
Operating profit
¥684 million
Operating profit year-on-year_pct-9.4
Medium-term management plan targets
The 2024-2026 medium-term management plan is referenced, but specific comparisons between targets and actual results are not disclosed
Orders received and order backlog
Orders received
¥64,653 million
Order backlog
¥59,875 million
Capital expenditures
¥2,237 millions plan for the fiscal year ending March 2027
Annual Dividend
Fiscal year ending March 2026
Annual Dividend¥40 per share
Fiscal year ending March 2027
Annual Dividend¥48 per share
Payout ratio
Fiscal year ending March 202623.4 %
Fiscal year ending March 202716.4 %
DOE
Fiscal year ending March 20261.6 %
Fiscal year ending March 20271.7 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ended March 2026 (with forecasts for the fiscal year ending March 2027 also shown)
Net Sales¥61,186 million (YoY +6.1%)
Operating profit¥5,362 million (YoY +10.4%)
Ordinary income¥5,492 million (YoY +9.8%)
Net income¥4,005 million (YoY +5.5%)
Operating profit margin8.8 %
Results for the three months of the current quarterFourth quarter of the fiscal year ended March 2026 Net Sales ¥21,438 million / Operating profit ¥3,324 million
Full-year earnings forecastFiscal year ending March 2027 Net Sales ¥68,300 million / Operating profit ¥6,400 million / Ordinary income ¥6,510 million / Net income ¥5,000 million / Operating Margin 9.4 %
Segment resultsMarine and port equipment Net Sales ¥13,675 million / Revenue year-on-year_pct 9.1 / Operating profit ¥1,317 million / Operating profit year-on-year_pct -15.1 / Oil-hydraulic and pneumatic equipment Net Sales ¥11,836 million / Revenue year-on-year_pct 3.3 / Operating profit ¥222 million / Operating profit year-on-year_pct 12.7 / Fluid equipment Net Sales ¥5,410 million / Revenue year-on-year_pct 7.8 / Operating profit ¥873 million / Operating profit year-on-year_pct 10.6 / Defense and communications equipment Net Sales ¥26,015 million / Revenue year-on-year_pct 6.6 / Operating profit ¥2,344 million / Operating profit year-on-year_pct 43.3 / Other Net Sales ¥4,249 million / Revenue year-on-year_pct 0 / Operating profit ¥684 million / Operating profit year-on-year_pct -9.4
Breakdown of Factors Affecting the ChangeOperating profit, fiscal year ended March 2026 Increase in revenue 971 / Improvement in cost ratio 528 / Foreign Exchange Effects -42 / Increase in selling, general and administrative expenses -783 / Increase in Research and Development Expenses -167 / Operating income forecast for the fiscal year ending March 2027 Increase in revenue 2,010 / Increase in cost ratio -482 / Foreign Exchange Effects 9 / Increase in selling, general and administrative expenses -4 / Increase in Research and Development Expenses -494
Key KPIsOrder backlog at period-end ¥59,875 million, Orders received ¥64,653 million, ROE 9.3 %, ROA 6.8 %, EPS ¥243.75
Assumptions Underlying the Business OutlookUSD exchange rate 151 JPY/USD, USD foreign exchange sensitivity ¥20 million (impact on operating profit per ¥1 depreciation of the yen, Q1-Q4)
Medium-term management plan targetsThe 2024-2026 medium-term management plan is referenced, but specific comparisons between targets and actual results are not disclosed
Annual DividendFiscal year ending March 2026 Annual Dividend ¥40 per share / Fiscal year ending March 2027 Annual Dividend ¥48 per share
Payout ratioFiscal year ending March 2026 23.4 % / Fiscal year ending March 2027 16.4 % / DOE Fiscal year ending March 2026 1.6 % / Fiscal year ending March 2027 1.7 %
Capital expenditures¥2,237 millions (plan for the fiscal year ending March 2027)
Orders received and order backlogOrders received ¥64,653 million / Order backlog ¥59,875 million
New initiativesDemonstration and commercial deployment of navigation control functions for autonomous vessels, Investment in Logic and Design Co., Ltd. and development of AI camera products using image-enhancement technology, R&D into growth drivers including space, hydrogen and edge AI, Capital investment for the Defense business and the renewal and enhancement of core systems
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesMarket 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.

For the fiscal year ended March 2026, revenue increased across all businesses, including the Marine and Port Equipment business, in addition to higher revenue and profit in the Defense and Communications Equipment business. The increase in revenue and improvement in the cost ratio outweighed the impact of foreign exchange rates and increases in selling, general and administrative expenses and R&D expenses, resulting in higher operating profit. For the fiscal year ending March 2027, the company expects a substantial increase in revenue and profit in the Defense and Communications Equipment business, including the Defense business.

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TOKYO KEIKI INC. Fiscal Year Ending March 2026 Earnings Presentation | TOKYO KEIKI INC. (7721) timely disclosure | Komori