Makita (6586) Q4 2025 earnings summary

Executive summary

• Revenue for FYE2025 reached ¥753.1 billion, up 1.6% year-over-year, driven by yen depreciation, cost reductions, and growth in Europe and Japan, offsetting declines in North America and Asia.

• Operating profit surged 61.8% to ¥107.0 billion, with an operating margin of 14.2%.

• Profit attributable to owners increased 81.6% to ¥79.3 billion.

• EPS increased to ¥294.90 from ¥162.13 year-over-year.

• Focus on expanding cordless product lineup and cost optimization initiatives.

Financial highlights

• Cost of sales ratio improved by 5.8 points to 64.0%, and gross profit margin rose to 36.0% from 30.2% year-over-year.

• Operating profit margin increased to 14.2% from 8.9% year-over-year.

• Net cash provided by operating activities was ¥129.87 billion, down from ¥237.09 billion.

• Cash and cash equivalents at year-end increased to ¥253.28 billion.

• Dividend per share for FYE2025 was ¥110, including a ¥6 commemorative dividend.

Outlook and guidance

• FYE2026 revenue forecasted at ¥700.0 billion, a 7.1% decline year-over-year.

• Operating profit expected to drop 30.9% to ¥74.0 billion; profit attributable to owners to fall 31.9% to ¥54.0 billion.

• EPS forecasted at ¥200.71.

• U.S. sales projected to drop significantly due to tariffs on China; labor costs anticipated to rise.

• Dividend policy maintains a total return ratio of at least 35% and a minimum annual dividend of ¥20 per share.