丸山製作所: Recovery to a PBR of 1x and becoming a double-bagger are the bare minimum, as earnings forecasts and dividends are revised upward and enhanced shareholder returns are expected to push the total shareholder return yield above 3%

丸山製作所 reported substantial profit growth in its third-quarter results for the fiscal year ending September 2026. Revenue rose 10.7% year on year to ¥32,843 million, operating profit increased 116.7% to ¥1,760 million, ordinary profit rose 97.1% to ¥1,818 million, and profit attributable to owners of the parent increased 86.6% to ¥1,072 million. Demand increased in both the agricultural and forestry machinery and industrial machinery segments, while orders are also recovering.

For the full fiscal year ending September 2026, the company forecasts revenue of ¥43,000 million, operating profit of ¥1,800 million, ordinary profit of ¥1,750 million and profit attributable to owners of the parent of ¥1,100 million, representing year-on-year increases in both revenue and profit. The company expects continued growth for the full year, supported by capital investment demand for agricultural and forestry machinery and steady conditions in the North American market.

As part of its medium- to long-term growth strategy, the company is implementing its Eighth Medium-Term Management Plan, which began in fiscal 2023. For the final year, the fiscal year ending September 2027, it aims to achieve revenue of ¥48,000 million, operating profit of ¥2,800 million, ROE of at least 7.5% and an overseas revenue ratio of at least 35%. Key initiatives include strengthening earnings capacity, expanding the overseas business and reinforcing its financial position.

For shareholder returns, the company targets a consolidated dividend payout ratio of approximately 30% and paid a dividend of ¥80 for the fiscal year ended September 2025, including a commemorative dividend marking its 130th anniversary. It also expects to pay ¥80 for the fiscal year ending September 2026 and plans to continue share buybacks. Through measures including its QUO card shareholder benefit program and expanded options for digital gifts, the company expects to maintain a total shareholder return yield above 3%.