Makita Corporation (TSE: 6586), the Anjo, Aichi-based global power-tool manufacturer founded in 1915, reported FY3/2026 consolidated IFRS results showing modest top-line growth, slight operating-profit slippage, and a substantial dividend increase backed by an exceptionally strong balance sheet. Revenue rose 3.2% to ¥777.6 billion, operating profit slipped 2.2% to ¥104.7 billion, profit before tax was broadly flat at ¥108.0 billion (−0.4%), and profit attributable to owners came in essentially unchanged at ¥79.4 billion (+0.1%). Basic EPS was ¥299.95 (vs ¥294.90 prior, +1.7%). The standout swing was comprehensive income, which jumped 109.2% to ¥157.4 billion on favorable foreign-currency translation reserves — Makita generates the bulk of revenue overseas (Europe, North America, emerging markets), so a weaker yen on translation lifts the equity reserve substantially even when functional-currency results are stable.
Dividend lifted 36%: ¥110 → ¥150 (post the ¥90 → ¥130 year-end raise)
The most material capital-allocation news was the dividend lift. The FY3/2026 annual dividend was set at ¥150 per share (¥20 interim + ¥130 year-end), up from ¥110 (¥20 + ¥90) the prior year. The year-end alone jumped from ¥90 to ¥130 — a ~44% step-up — pushing total dividends paid to ¥38.9 billion (vs ¥29.6 billion) and the payout ratio to 50.0% from 37.3%. The dividend-on-equity (DOE) ratio rose to 4.1% from 3.3%. For FY3/2027, only the interim is currently disclosed at ¥79 per share (year-end "undecided pending earnings progress"), implying a possible further increase if earnings deliver.
Fortress balance sheet supports the capital return
Makita's balance sheet remains one of the most conservative among Japanese listed industrial companies. Total assets grew to ¥1,181.2 billion from ¥1,106.5 billion, equity attributable to owners expanded to ¥997.3 billion from ¥926.0 billion, and the owners' equity ratio strengthened to 84.4% from 83.7%. BPS reached ¥3,859.45. The treasury share count rose to 21.6 million from 11.0 million as buybacks accelerated alongside the dividend lift. Operating cash flow narrowed to ¥102.3 billion from ¥129.9 billion (working-capital normalization), funded a smaller investing outflow of ¥17.6 billion (vs ¥37.9 billion) and a substantially larger financing outflow of ¥99.2 billion (vs ¥33.5 billion) — entirely consistent with the elevated capital-return program.
FY27 guidance: revenue +5.5%, OP +5.1%
For FY3/2027, management guides revenue of ¥820.0 billion (+5.5%), operating profit of ¥110.0 billion (+5.1%), profit before tax of ¥111.0 billion (+2.8%), and profit attributable to owners of ¥81.0 billion (+2.0%). Basic EPS guidance is ¥313.45. The modest growth pace reflects continued global power-tool demand from professional construction and DIY channels, with management implicitly assuming a stable yen and moderating raw-material inflation. No going-concern issues or significant subsequent events were noted; the consolidated scope was unchanged year-on-year.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 777.6 | 753.1 | +3.2% |
| Operating profit (¥ billion) | 104.7 | 107.0 | −2.2% |
| Profit before tax (¥ billion) | 108.0 | 108.5 | −0.4% |
| Profit attrib. to owners (¥ billion) | 79.4 | 79.3 | +0.1% |
| Comprehensive income (¥ billion) | 157.4 | 75.2 | +109.2% |
| Basic EPS (¥) | 299.95 | 294.90 | +1.7% |
| Operating margin | 13.5% | 14.2% | −0.7pp |
| Equity ratio (owners) | 84.4% | 83.7% | +0.7pp |
| Annual dividend (¥) | 150.00 | 110.00 | +36.4% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.