Shibaura Machine misses sales target in mixed Q2, adjusts strategy

Shibaura Machine announced its Q2 FY2026 financial results, with sales reaching JPY 676 bn against a forecast of JPY 700 bn, a JPY 24 bn shortfall. Operating profit was JPY 20 bn, JPY 2 bn below expectations, with a 3.0% operating profit margin. Net profit attributable to owners of the parent was JPY 17 bn, slightly above the JPY 16 bn forecast. Order intake was JPY 492 bn, significantly below the JPY 660 bn forecast, primarily due to delayed orders for EV-向けの extrusion molding machines.

The company's medium-term management plan for FY2026 anticipates falling short of its sales target of JPY 200 bn due to a slowdown in EV battery demand and US tariffs, particularly affecting injection molding and die-casting machines. Production capacity for EV batteries is expected to be 2.4 times demand by 2030, making it difficult to achieve JPY 100 bn in extrusion machine sales from the original plan. To mitigate these impacts, Shibaura Machine is accelerating cost reduction, expanding sales in Europe and India for injection molding and machine tools, and focusing on next-generation BSF orders.

The dividend forecast remains stable at JPY 70.0 per share for the second quarter and JPY 140.0 for the full year, resulting in a forecasted dividend payout ratio of 100.3% for FY2026. The company continues to invest in M&A, having acquired Technoline Inc. and Functional Fluid Co. Ltd., and plans to acquire SHIBAURA MACHINE LWB GmbH to strengthen its European presence.