TOKYO KEIKI INC.'s defense and communications equipment business is growing rapidly, supported by expanding demand for defense-related equipment. Operating profit and ordinary profit reached record highs in the fiscal year ended March 2025, and revenue is expected to increase in the fiscal year ending March 2026.
TOKYO KEIKI INC.'s defense and communications equipment business is growing rapidly against the backdrop of expanding defense spending. Deliveries of aircraft radar warning systems and naval vessel equipment have been strong, and the company reportedly returned to operating profitability in the first six months of the fiscal year ending March 2026, compared with an operating loss in the same period a year earlier. This trend coincides with expectations that defense spending will continue through fiscal 2027.
The order backlog stood at ¥6.1885 billion as of the interim period-end of the fiscal year ending March 2026, up 13.0% year on year. Defense and communications equipment accounted for approximately 73% of the total, with an order backlog of more than ¥4.5 billion in this segment providing a foundation for future revenue. The order backlog for marine and port equipment is also expected to increase substantially, raising expectations for growth across multiple businesses.
As its long-term growth strategy, the company has established TOKYO KEIKI Vision 2030, with the aim of creating globally niche-leading businesses. ROE is projected at 9.8%, and the company has revised upward its performance targets under the three-year plan from fiscal 2024 onward. Research contract work for the Acquisition, Technology & Logistics Agency is also progressing as part of the development of new technologies.
By business, defense and communications equipment accounted for 42.3% of sales, marine and port equipment for 21.7%, hydraulic and pneumatic equipment for 19.9%, fluid equipment for 8.7%, and Other for 7.4%, highlighting the prominence of the core defense-related business. In the fiscal year ended March 2025, revenue was ¥57,650 million, operating profit was ¥4,856 million, ordinary profit was ¥5,001 million, and ROE was 9.8%, reaching record-high levels. However, based on conditions in the first six months of the fiscal year ending March 2026, the full-year forecast is expected to call for lower profit.