Murata Machinery, Ltd. Overview
Murata Machinery is a family-led Japanese capital-goods group that began in textile machinery and has become one of the two dominant suppliers of automated material handling systems (AMHS) for semiconductor fabs. Its Clean FA business, built around overhead hoist transport (OHT), stockers and fab-wide control software, generates 43% of sales and sells to the world's leading chipmakers, including TSMC, Intel and KIOXIA, all of which have recognized it as a supplier. Logistics and factory automation, automatic winders and VORTEX spinning machines, CNC lathes and sheet metal machinery, and communication equipment and security products complete the portfolio. The unifying idea is automation and labor saving. With no meaningful debt, about JPY 325 billion in cash and securities, and an operating margin near 17%, the company funds growth internally and answers to no public shareholders. It plans a 33% sales increase to JPY 693.5 billion in FY2027.
Murata Machinery designs, manufactures, installs and maintains production and logistics equipment across five businesses: Textile Machinery; Logistics & Factory Automation Systems (L&A); Clean Factory Automation (Clean FA); Machine Tools, which includes lathes and sheet metal machinery; and Communication Equipment.
The company describes itself through its corporate slogan, "Innovation. Mark the turning point", and through a philosophy to "expand the boundaries of technological advancement, provide meaningful products that enrich the lives of our customers, bring prosperity to each of our employees and lead society to a better tomorrow." Its own statement of purpose is to build "human-friendly technologies" that let machines do what machines can do, so that people can do what only people can do. Four values underpin the brand: innovation through partnership with customers, service that ensures non-stop operation, broad businesses with synergies, and high-quality, safe manufacturing.
An independent reading is less diversified than the five-division structure implies. Clean FA and L&A share a technology core in material handling, control and swarm dispatching, and together made up 66% of FY2026 sales. Textile machinery is a second, separate franchise with its own cycle, centered on Chinese and South Asian spinning investment. Machine tools and communication equipment are smaller units under reorganization. Murata is best seen as a semiconductor-automation leader with a strong logistics arm and a cyclical textile cash generator attached.
Business model. The core model is engineered-to-order capital equipment, usually sold as a project with advance payments, followed by long-life service. Advances received of JPY 65.7 billion at FY2026 show how customers help fund project work. The revenue split between equipment, service and software is not publicly disclosed. The direction is clear, however: the Textile Machinery Division's FY2027 priority is to "establish a lifecycle business" through parts and service bundles, preventive maintenance and subscription-style proposals, and it already supports about 4,400 customers for up to 20 years after delivery.
Value chain position. Murata sits between component suppliers and end operators as an original equipment manufacturer and system integrator. Production is concentrated in Japan, which gives the group a structural benefit from a weak yen, with Shanghai as a further production site. Clean FA work extends from layout design through installation and commissioning at customer fabs, and project execution relies on local partners overseen by Murata's construction managers.
Customers and end-markets.
Clean FA: Customer types: Foundries, logic and memory manufacturers; End-markets: Semiconductor front-end, with growing back-end automation
L&A: Customer types: Manufacturers, distributors, 3PLs, e-commerce operators, libraries; End-markets: Food, pharmaceuticals, chemicals, batteries, tires, auto parts, machinery, electronics, wholesale, central kitchens
Textile Machinery: Customer types: Spinning mills; End-markets: Apparel and home textiles; China, India, South and Southeast Asia, Turkey
Machine Tools: Customer types: Auto-parts makers, sheet metal job shops; End-markets: Automotive, general machining, fabrication
Communication Equipment: Customer types: Small and medium-sized enterprises, factories; End-markets: Office IT, information security, production management
Strategy
Stated strategy. Vision 2035, under the theme "Change and Evolve", is the ten-year frame to the company's 100th anniversary. It rests on two axes: automation, and new styles of manufacturing that respond to resource and environmental constraints. President Murata argues that the company should prepare for an "era of decrease" in which populations shrink and mass-production models adjust. The aim is to be "the world's top machine manufacturer", defined by the ability to connect different technologies rather than by scale.
The three-year plan covering FY2026 to FY2028, themed "Let's change together", calls for higher output without proportionally more labor, resources or environmental load. The president frames this directly for FY2027: delivering 30% more production with 30% more hours and energy would not qualify as new manufacturing.
Divisional priorities
Clean FA: 2035 vision: Stay a key player by "always looking one step ahead"; Priorities: Safety and quality culture, new technologies and markets, DX, sustainable organization, environmental response
L&A: 2035 vision: "Division for Designing Society"; Priorities: Semiconductor and distribution solutions, new markets, AI-driven process change; productivity as the source of competitiveness
Textile Machinery: 2035 vision: "Weaving the Future, Beyond Innovation"; Priorities: Next-generation models, lifecycle business, new VORTEX markets, modular production, global capability
Machine Tools: 2035 vision: Trusted partner across customers' whole processes; Priorities: Automation for mid-volume production outside autos; hybrid laser proposals; network-based operating support
Communication Equipment: 2035 vision: "DX partner creating the future of manufacturing"; Priorities: Shift from MFPs to security and factory solutions; packaged Information Organizer; factory security
Initiatives in the last 24 months
New three-year plan: Date: Jun 2025; Detail: Sales of JPY 663.0 billion and operating profit of JPY 83.0 billion in FY2028
Global training network: Date: 2025-2026; Detail: Yokkaichi, Arizona, Dresden, adding to Tainan and Shanghai; curricula being standardized
Logi-Designs Yokohama: Date: Jan 2026; Detail: AI and software development; talent access in greater Tokyo
Capacity expansion: Date: FY2027; Detail: JPY 37.3 billion capex for production expansion, equipment renewal and IT
New ERP: Date: 2026; Detail: Went live behind plan; supported by PLM renewal
Career Discovery System: Date: FY2026; Detail: About 50 of about 5,000 eligible staff applied; 20 moved
Abolition of age-based specialist grade: Date: Apr 2026; Detail: Older employees regain eligibility for raises and promotion
Job classification reform: Date: Apr 2025; Detail: General and career-track distinction removed
Sustainability Committee: Date: Apr 2026; Detail: President-led structure, with double materiality adopted
Security Management Office and Muratec SIRT: Date: Apr 2026; Detail: Integrated information, product and factory security response
Scope 3 reporting: Date: From FY2028; Detail: Category results to be published progressively
Generative AI use: Date: Ongoing; Detail: Governance guideline and development use
Management targets
Sales (JPY bn): FY2026 actual: 520.8; FY2027 plan: 693.5; FY2027 medium-term target (Jun 2025): 602.8; FY2028 medium-term target (Jun 2025): 663.0
Operating profit (JPY bn): FY2026 actual: 87.6; FY2027 plan: 106.0; FY2027 medium-term target (Jun 2025): 75.2; FY2028 medium-term target (Jun 2025): 83.0
The FY2027 plan assumes USD 145 and EUR 175, and excludes any effect from the situation in the Middle East. It also implies a margin decline to 15.3% as growth, inflation and fixed costs interact.
Products & Services
Pricing is not publicly disclosed for any product line; capital equipment is quoted by project or configuration.
Clean FA
Logistics & Automation
Textile Machinery
Machine Tools: lathes
Machine Tools: sheet metal
Communication Equipment
New business domains
Product Portfolio
| Product | Description and capability | Target customer | Year or status |
|---|---|---|---|
OHT (Overhead Hoist Transport) | Moves FOUPs along ceiling rails across floors and buildings; the core of a fab transport system. An energy-saving power supply reduces heat loss in non-contact supply lines and can be retrofitted | 200mm and 300mm fabs | Current; roots in SKY RAV, 1986 |
AGV | Floor-level automated transport for fabs | Semiconductor fabs | Current |
HTC (High-Throughput Conveyor) | High-capacity conveyor link | Semiconductor fabs | Current |
Vertical Conveyor | Automated vertical carrier transport | Multi-floor fabs | Current |
Carrier Stocker | Automated storage for FOUPs and other carriers. The newest design carries 20 kg or more against 12 kg previously, with equipment weight down about 26% and power consumption down about 27% on average | Fabs | New design reported in Sustainability Report 2026 |
Bare Wafer Stocker (CDWX) | Storage for wafers outside carriers | Advanced fabs | Exhibited SEMICON Japan 2023 |
OHB (Over Head Buffer) | Ceiling-level storage | Fabs | Current |
Tool Front Buffer | Storage near process tools | Fabs | Current |
Purge System | Controlled environment for stored carriers | Advanced fabs | Current |
MCS (Material Control System) | Fab-level control of material movement | Fabs | Current |
MDS (MCS Dispatching System) | Dispatch optimization | Fabs | Current |
Full Fab AUTOMATION | Concept to detect, visualize, optimize and automate all movement in a fab, including receiving and shipping areas outside the clean room | Fab operators | Current strategic offering |
| Product | Description and capability | Target customer |
|---|---|---|
AS/RS | Automated storage and retrieval, including pallet warehouses | Manufacturers, distributors |
Uni-SHUTTLE HP / HP-E | Shuttle AS/RS combining storage, transport and sortation. The HP-E shuttle emits about 65% less CO2 than its predecessor | E-commerce, wholesale |
ALPHABOT | 3D robotic warehousing system, developed from the Alert Innovation partnership | Retail, distribution |
Premex XIO | Smart AGV | Factories, warehouses |
Premex SLX, with SVS option | Automated forklift, including a self-driving carriage-mounted version | Pallet logistics |
Premex | AGV | Factories |
RTN-X | Automated transport and sorting vehicle | Distribution centers |
SHUTTLINER | Case transport and sorting carriage system | Distribution centers |
SKY RAV | Overhead transportation system | Factories |
Crossbelt sorter, conveyors, vertical transporters | Sortation and transport components | Distribution |
Muratec E-LOGICS | Logistics software, camera and sensing systems, support systems and smart solutions | System users |
Application packages | Anti-earthquake, cold chain, hazardous storage, clean, renewal solutions | Specialist users |
Cimcorp Dream Factory | End-to-end tire plant automation from raw materials to finished goods; named Most Innovative Automation Solution in the Manufacturing Supplier Innovation Awards US 2025 | Tire makers |
Cimcorp Dreamfield and EV-battery automation | Robotic gantry systems for grocery and battery factories | Grocers, battery makers |
AGVE systems | AGVs and control devices | Industrial users |
| Product | Description and capability | Target customer | Latest version |
|---|---|---|---|
PROCESS CONER AIcone | Automatic winder; power consumption per unit of production 5% below the previous model; recycled iron makes up 60% of drum material. The company claims the world's largest market share in automatic winders | Spinning mills | Released ITMA 2023 |
VORTEX 870 EX | Air-vortex spinner integrating roving, spinning and winding on one machine; practical speed of 550 m/min; about 5% lower mechanical-drive power through static pressure control | Spinning mills | Released ITMA 2019 |
Muratec Smart Support (MSS) | IoT management system for multiple machines, with anomaly detection using operating data | Mills | Being deployed globally |
Genuine parts and engineering support | Parts, upgrades, training | Installed base | Current |
| Series | Type | Notes |
|---|---|---|
MW, MW-EX | Twin spindle CNC chuckers | MW400II successor adds space saving and large-part capability for discs, calipers, flywheels and pulleys |
MS | Single spindle CNC chuckers | MS60IIG automation package shown at JIMTOF 2026 |
MT, MD | CNC turning centers | Multi-tasking turning |
MJ | CNC turning with tailstock | Shaft-type work |
ML | CNC shaft turning | Shaft work |
MWR | Parallel turning series | Current |
MVH600 | First vertical CNC turning center with integrated gantry loader: 24-inch chuck, 12-station turret, 30 kW spindle, 2,000 min-1, parts up to 100 kg | On sale from 1 December 2026 |
Automation | Gantry loaders, stockers, post-process gauges, MP Link200 multi-point gauge | Automated cells |
| Line | Models | Notes |
|---|---|---|
Turret punch presses | M3048TG, M3058TG, M30510TG, M2044TS, M2048TS, M2048TE, M2044TC, M5000 | MOTORUM servo platform with over 30 years of history |
Laser machines | LS3015GC, LS2512GC | Fiber laser cutting |
Hybrid machines | LS3015MC, LS3015HL, LS2512HL, MF3048HL, MF30510HL, MF2048HL | LS3015MC combines laser with drilling, tapping and counterboring on plates up to 16 mm. MF2048HL offers 200 kN press capacity, a 3.0 kW laser and 6.35 mm maximum thickness |
Press brakes | BH and BB series | Robot automation under development |
Deburring | DB1000S, DB1500S, DB600R, DB1000R | Finishing |
Automation and software | FG, FS and SL cells; CAD/CAM; ProcessNet Portal | ProcessNet Portal is a cloud support service; both it and LS3015MC won 2026 Good Design Awards |
| Offering | Description | Target customer |
|---|---|---|
Digital MFPs and facsimile | Office printing and communication | Office users |
UTM-equipped network storage | Security and file storage | SMEs |
Information Organizer | IoT-integrated, cloud-based MES connecting people, materials and equipment; being packaged by use case to reduce customization | Molding, parts machining and assembly plants |
Factory security | New field extending office security products | Manufacturers |
Production management systems | Muratec Frontier software for molding plants and others | Manufacturers |
silex wireless and edge AI | BR-110AX Wi-Fi 6 wireless bridge (October 2026) and intelligent edge AI modules | Device makers |
| Offering | Description | Status |
|---|---|---|
Multiple Filament Winder | Forms CFRP and GFRP parts such as hydrogen tanks, using a multi-filament system derived from Kyoto kumihimo braiding; about nine times the productivity of conventional methods | Commercial; first completed 2005 |
It's Navi | Autonomous mobile robot control: an operator teaches a route once; works indoors and outdoors with no facility changes | Commercial |
CNT yarn | Carbon nanotube yarn research | R&D |
Financial Narrative
All figures below come from the audited consolidated statements and earnings summaries for FY2022 to FY2026. Ratios marked as calculated are derived from those statements. The company publishes no cash flow statement, depreciation or amortization figure, so operating cash flow, free cash flow and EBITDA are not publicly disclosed. Diluted EPS is also not reported.
Income statement
Revenue compounded at 7.4% a year from FY2022 to FY2026, operating profit at 9.7% and net profit at 8.0%. From the FY2021 base of JPY 256.8 billion, the five-year revenue CAGR is 15.2%.
The 52.6% jump in FY2022 should be read with care. In that year work in process fell from JPY 69.7 billion to JPY 16.8 billion while receivables more than doubled and advances received halved. The pattern coincides with mandatory adoption of Japan's revenue recognition standard for fiscal years from April 2021, which suggests that part of the increase reflects earlier recognition rather than demand alone.
FY2023 marks the low point for margins. Provisions for loss on construction contracts rose from JPY 0.9 billion to JPY 11.3 billion, and a JPY 2.3 billion compensation-for-damage charge was booked, without any public identification of the projects involved. Margins recovered as those provisions unwound, reaching 3.8 billion in FY2024 and 0.6 billion in FY2025.
In FY2026, gross profit was flat at JPY 175.6 billion and SG&A rose JPY 5.4 billion, which accounts for nearly all of the JPY 5.5 billion decline in operating profit. Ordinary profit consistently exceeds operating profit because of interest and dividend income and foreign exchange gains. FY2026 included JPY 14.8 billion of FX gains, and FY2025 included JPY 8.1 billion from silent partnerships. These items are not recurring in any dependable sense, so operating profit is the better measure of earnings power. The effective tax rate was 38.6% in FY2026.
Balance sheet
Cash and securities reached JPY 324.8 billion in FY2026, or 37% of total assets, against JPY 5.0 billion of debt. Current securities rose by JPY 68.0 billion in the year. Advances received climbed 37.8%, which is the clearest publicly available sign of order momentum because the company does not disclose orders or backlog in JPY terms.
Software in progress of JPY 4.3 billion reflects the new ERP introduced in 2026. FY2026 also carries a JPY 3.5 billion provision for doubtful accounts and a JPY 2.3 billion parent-level write-down of subsidiary shares, while long-term loans receivable at the parent rose from JPY 0.1 billion to JPY 3.9 billion. These movements point to support for a troubled group or associated company. The counterparty is not publicly disclosed.
Capital expenditure and shareholder returns
The company's articles set JPY 50 per share for one group of shareholders under Article 7 and JPY 10 for another under Article 8. Share count has held at 13,724 thousand since at least FY2020, so no buybacks are evident.
Ratios
Returns are drifting down for a good reason: cash is piling up faster than it can be deployed, and the asset base grew 60% in four years. Asset turnover fell from 0.78 to 0.63. ROE of 10.1% is respectable given a 78% equity ratio, but the balance sheet is plainly over-capitalized by listed-company standards. The company can sustain that because a family-controlled owner has no external pressure to distribute it. The cash conversion cycle lengthened from 114 to 193 days, largely because payable days fell from 99 to 52 as payables shrank. Advances received offset part of this, as they are outside the calculation.
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Segment Overview
| Segment | Contents |
|---|---|
Clean FA (CFA) | OHT, AGV, high-throughput conveyors, stockers, buffers, purge systems, material control software, for semiconductor fabs |
Logistics & Automation (L&A) | AS/RS, shuttle systems, AGVs, sorters, overhead transport, logistics software; includes Cimcorp, AGVE |
Textile Machinery (TEX) | Automatic winders, VORTEX spinning machines, parts and service |
Machine Tools (MTD) | CNC lathes, turret punch presses, laser and hybrid machines, press brakes, automation cells |
Communication Equipment (COEQ) | MFPs, security appliances, production management systems, silex wireless products |
Others | Other group businesses |
Segment sales (JPY Bn) | FY2022 |
Clean FA | 140.9 |
Logistics & Automation | 97.2 |
Textile Machinery | 85.1 |
Machine Tools | 39.1 |
Communication Equipment | 15.0 |
Others | 14.5 |
Total | 391.8 |
Share of sales (%) | FY2022 |
Clean FA | 36.0 |
Logistics & Automation | 24.8 |
Textile Machinery | 21.7 |
Machine Tools | 10.0 |
Communication Equipment | 3.8 |
Others | 3.7 |
YoY growth (%) | FY2023 |
Clean FA | 32.6 |
Logistics & Automation | -6.2 |
Textile Machinery | 27.8 |
Machine Tools | 18.2 |
Communication Equipment | 8.7 |
Others | 15.2 |
FY2027 plan by segment | Sales (JPY bn) |
Clean FA | 300.0 |
Logistics & Automation | 159.6 |
Textile Machinery | 157.9 |
Machine Tools | 44.7 |
Communication Equipment | 18.8 |
Others | 12.5 |
Total | 693.5 |
Peer Comparison
| Company | Role | Location |
|---|---|---|
Muratec Mechatronics Co., Ltd. | Manufacturing, sensors | Shiga, Oita |
Muratec Frontier, Ltd. | Production management systems | Japan |
Muratec C.C.S, Ltd. | Customer service | Japan |
Murata Tool, Ltd. | Sheet metal tooling | Minokamo, Gifu |
Murata Parts Sales, Ltd. | Textile machinery parts | Kyoto |
silex technology, Inc. | Networking, wireless and edge AI modules | Seika, Kyoto |
Nippon Shooter, Ltd. | Transportation systems | Tokyo |
Muratec-KDS Corp. | Measuring instruments, fastenings, panel-processing systems | Kyoto |
TMT Machinery, Inc. | Synthetic textile machinery | Osaka |
Cimcorp Oy | Gantry robot systems for intralogistics | Ulvila, Finland |
AGVE AB | AGVs and controls | Askim, Sweden |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 391,826 | 466,133 | 497,452 | 526,076 | 520,826 |
Sales growth (%) | 52.6 | 19.0 | 6.7 | 5.8 | -1.0 |
Cost of sales (JPY Mn) | 266,887 | 327,319 | 339,179 | 350,304 | 345,205 |
Gross profit (JPY Mn) | 124,938 | 138,813 | 158,272 | 175,771 | 175,621 |
SG&A (JPY Mn) | 64,503 | 74,966 | 79,136 | 82,631 | 87,987 |
Operating profit (JPY Mn) | 60,435 | 63,847 | 79,135 | 93,140 | 87,634 |
Foreign exchange gains (JPY Mn) | 10,269 | 10,494 | 15,851 | 1,213 | 14,766 |
Ordinary profit (JPY Mn) | 80,730 | 81,833 | 103,666 | 112,698 | 109,794 |
Pre-tax income (JPY Mn) | 80,580 | 82,151 | 103,823 | 112,792 | 111,654 |
Net profit to owners (JPY Mn) | 50,360 | 49,271 | 67,312 | 72,166 | 68,542 |
Basic EPS (JPY) | 3,669.35 | 3,590.04 | 4,904.54 | 5,258.22 | 4,994.18 |
Dividend per share (JPY) | 10 | 10 | 10 | 10 | 10 |
Book value per share (JPY) | 28,027.28 | 31,876.02 | 38,147.56 | 43,174.83 | 49,610.68 |
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View Subscription PlansMargin (%)
| Margin (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin | 31.9 | 29.8 | 31.8 | 33.4 | 33.7 |
SG&A ratio | 16.5 | 16.1 | 15.9 | 15.7 | 16.9 |
Operating margin | 15.4 | 13.7 | 15.9 | 17.7 | 16.8 |
Ordinary margin | 20.6 | 17.6 | 20.8 | 21.4 | 21.1 |
Net margin | 12.9 | 10.6 | 13.5 | 13.7 | 13.2 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 545,642 | 620,363 | 710,978 | 769,295 | 875,863 |
Cash and deposits (JPY Mn) | 152,546 | 124,996 | 171,950 | 210,036 | 244,827 |
Securities, current (JPY Mn) | 12,018 | 13,143 | 13,817 | 11,927 | 79,949 |
Investment securities (JPY Mn) | 100,041 | 105,856 | 108,069 | 113,762 | 116,341 |
Trade receivables (JPY Mn) | 143,079 | 196,653 | 215,490 | 226,148 | 208,165 |
Inventories (JPY Mn) | 58,663 | 91,176 | 97,877 | 94,275 | 94,227 |
Short-term borrowings (JPY Mn) | 10,280 | 10,241 | 10,305 | 4,990 | 5,000 |
Long-term borrowings (JPY Mn) | 60 | 60 | 47 | 0 | 0 |
Total debt (JPY Mn) | 10,340 | 10,301 | 10,352 | 4,990 | 5,000 |
Net debt, negative is net cash (JPY Mn) | -142,206 | -114,695 | -161,598 | -205,046 | -239,827 |
Advances received (JPY Mn) | 27,666 | 29,165 | 35,990 | 47,644 | 65,654 |
Net assets (JPY Mn) | 384,784 | 437,610 | 523,715 | 592,680 | 681,033 |
Goodwill (JPY Mn) | 968 | 816 | 730 | 548 | 0 |
Intangible assets including goodwill (JPY Mn) | 3,644 | 3,441 | 3,016 | 2,720 | 6,586 |
Working capital (JPY Mn) | 236,691 | 273,088 | 349,441 | 400,990 | 478,023 |
Cash Flow and Margin Analysis (%)
| Metric | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
Capital expenditure (JPY Bn; FY2027 is plan) | 15.9 | 14.4 | 37.3 |
Capex as share of sales (%; FY2027 is plan) | 3.0 | 2.8 | 5.4 |
Dividends & Capital Returns and Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total dividends (JPY Mn) | 239 | 239 | 239 | 239 | 239 |
Payout ratio (%) | 0.5 | 0.5 | 0.4 | 0.3 | 0.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE, reported (%) | 13.1 | 11.3 | 12.9 | 12.2 | 10.1 |
ROA, net profit on average assets, calculated (%) | 10.0 | 8.5 | 10.1 | 9.8 | 8.3 |
ROIC, after-tax operating profit on average net assets plus debt, calculated (%) | 10.5 | 9.1 | 10.5 | 10.5 | 8.4 |
Equity ratio, reported (%) | 70.5 | 70.5 | 73.6 | 77.0 | 77.7 |
Current ratio, calculated (x) | 2.54 | 2.54 | 3.00 | 3.46 | 3.74 |
Debt to equity, calculated (x) | 0.027 | 0.024 | 0.020 | 0.008 | 0.007 |
Interest coverage, operating profit to interest, calculated (x) | 468 | 760 | 654 | 498 | 630 |
Asset turnover, calculated (x) | 0.78 | 0.80 | 0.75 | 0.71 | 0.63 |
Receivable days, year-end, calculated | 133 | 154 | 158 | 157 | 146 |
Inventory days, year-end, calculated | 80 | 102 | 105 | 98 | 100 |
Payable days, year-end, calculated | 99 | 96 | 83 | 65 | 52 |
Cash conversion cycle, calculated (days) | 114 | 159 | 181 | 190 | 193 |
Region sales (JPY Bn)
| Region sales (JPY Bn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan | 143.6 | 133.3 | 136.5 |
Asia excluding Japan | 229.2 | 268.7 | 262.6 |
USA | 66.6 | 71.3 | 78.9 |
Europe | 34.3 | 32.3 | 29.9 |
Others | 23.5 | 20.3 | 12.9 |
Total | 497.4 | 526.0 | 520.8 |
Region share (%)
| Region share (%) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan | 28.9 | 25.3 | 26.2 |
Asia excluding Japan | 46.1 | 51.1 | 50.4 |
USA | 13.4 | 13.6 | 15.1 |
Europe | 6.9 | 6.1 | 5.7 |
Others | 4.7 | 3.9 | 2.5 |
Region YoY growth (%)
| Region YoY growth (%) | FY2025 | FY2026 |
|---|---|---|
Japan | -7.2 | 2.4 |
Asia excluding Japan | 17.2 | -2.3 |
USA | 7.1 | 10.7 |
Europe | -5.8 | -7.4 |
Others | -13.6 | -36.5 |
Per-share metric
| Per-share metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share (JPY) | 10 | 10 | 10 | 10 | 10 |
Basic EPS (JPY) | 3,669.35 | 3,590.04 | 4,904.54 | 5,258.22 | 4,994.18 |
Book value per share (JPY) | 28,027.28 | 31,876.02 | 38,147.56 | 43,174.83 | 49,610.68 |
Net assets dividend rate (%) | 0.1 | 0.1 | 0.1 | 0.0 | 0.0 |
Analyst Conclusions
Management guidance for FY2027
Sales (JPY bn): FY2026 actual: 520.8; FY2027 plan: 693.5; Change (%): 33.2
Operating profit (JPY bn): FY2026 actual: 87.6; FY2027 plan: 106.0; Change (%): 21.0
Ordinary profit (JPY bn): FY2026 actual: 109.7; FY2027 plan: 107.0; Change (%): -2.5
Net profit (JPY bn): FY2026 actual: 68.5; FY2027 plan: 69.0; Change (%): 0.7
Capex (JPY bn): FY2026 actual: 14.4; FY2027 plan: 37.3; Change (%): 159.0
There is no consensus forecast because no analysts formally cover the company.
Bull case
-
The order evidence supports the plan. Advances received rose 37.8% to JPY 65.7 billion, L&A booked record orders, and SEMI projects spending growth through 2029, with Daifuku's Clean Factomation confirming strong industry demand.
-
Guidance has proved conservative. FY2026 operating profit beat the June 2025 plan by 11% despite a sales shortfall, and the USD 145 assumption is cautious relative to recent rates.
-
Scarcity supports margins. Two suppliers dominate a critical, slow-to-qualify market, and capacity investment of JPY 37.3 billion comes from a position of JPY 239.8 billion in net cash.
Bear case
-
FY2026 showed how fragile timing is. Sales missed the plan by 4.6%, and a 33% step-up raises the odds of further slippage, particularly if supply or labor constraints bind.
-
The plan's margin falls to 15.3% from 16.8%, implying costs are rising faster than the company's own target of decoupling growth from input. Inflation is the president's own top risk.
-
Rivals are moving faster. Daifuku's H1 order growth and Asian localization may erode share, and textile growth of 45% rests on the durability of Chinese spending.
Key catalysts and monitorables (next 12 months)
ITMA ASIA + CITME: Timing: 20-24 Nov 2026; What to watch: Chinese textile demand and competitor machines
SEMICON Japan: Timing: Dec 2026; What to watch: New stocker and fab automation concepts
MVH600 sales start: Timing: 1 Dec 2026; What to watch: Traction outside auto parts
Daifuku results: Timing: Feb and Aug 2027; What to watch: Clean Factomation orders and sales as a proxy
TSMC and memory capex updates: Timing: Quarterly; What to watch: Timing of new fab installations
FY2027 results: Timing: About Jun 2027; What to watch: Whether JPY 693.5 billion was delivered; margin; FY2028 plan
Capacity projects: Timing: FY2027; What to watch: Use of JPY 37.3 billion capex
RBA VAP and CDP results: Timing: 2027; What to watch: Recovery to Platinum; CDP score
USD/JPY: Timing: Ongoing; What to watch: Distance from the JPY 145 assumption
Analyst verdict
Murata Machinery is one of Japan's most impressive and least visible industrial companies. A 90-year-old family firm that began with jacquard looms now stands, with Daifuku, at the center of a critical bottleneck in chip manufacturing. Its record is strong: sales up 33% in four years, a mid-to-high-teens operating margin, and net cash approaching a quarter of a trillion yen. Its FY2027 plan would bring forward its medium-term sales target by a year.
The quality of those earnings is high at the operating line, but investors in similar companies would look past reported ordinary profit, which includes volatile FX gains. The core question is delivery. A 33% increase in one year is a significant test for a business with long project cycles, stretched installation capacity, input inflation and a margin already guided lower. FY2026 showed that strong demand does not automatically convert into revenue, and that timing can move hundreds of billions of yen of expectation across a year-end. Investments in field training, ERP, and capacity suggest that management understands this.
The longer-term question concerns position rather than cash. Daifuku is expanding fast, Asian rivals are advancing, and Murata's response, moving from transport toward fab-wide optimization and timing-critical scheduling, remains promising but unproven at scale.
Governance is the outstanding weakness. An all-insider, family-led board has delivered patient capital and rapid decisions, and it has also left the company with a very low payout, modest disclosure and excess cash with no clear plan. For now, those costs are outweighed by the performance. The verdict is favorable: a high-quality franchise with a strong near-term cycle, whose success in FY2027 depends on execution, cost control and timing rather than on demand.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Current responsibility | Board or officer history |
|---|---|---|---|
Junichi Murata | Chairman | Board chair | Director since July 1961; chairman since August 2003 |
Daisuke Murata | President & CEO (representative director) | Group leadership | Director since August 1994; president since August 2003; earlier led Textile Machinery and Communication Equipment; 57 in November 2018 |
Yosuke Murata | Executive Vice President | Machine Tools GM, IT Solutions head, Inuyama site head | Director since August 1997; led Machine Tools 2001-2007, L&A 2009-2012, Machine Tools again since January 2022 |
Masahiko Omachi | Managing Director | Communication Equipment GM; ICC development head | Officer since August 2003; GM since October 2011 |
Tetsuji Masai | Managing Director | Textile Machinery GM | GM since April 2017; managing director since July 2022 |
Takenori Yanai | Managing Director | L&A GM | GM since April 2021; managing director since July 2022 |
Yasushi Takeda | Director | Corporate support head and ESG lead | Officer since August 2006 |
Katsunori Tanaka | Director | Manufacturing head | Officer since June 2015; director since April 2021 |
Sampei Murata | Director | Clean FA GM | Officer since June 2011; Clean FA GM since October 2020; director since June 2022 |
Manabu Yamashita | Full-time Audit & Supervisory Board Member | Audit | Since May 2012 |
Competitive Landscape
Competitors by Segment
| Segment | Direct competitors |
|---|---|
Clean FA | Daifuku (including Clean Factomation), SEMES, SFA Engineering, Mirle Automation, SYNUS Tech, Shinsung E&G, Symtek Automation Asia, Brooks/Azenta in reticle stockers, Rorze in wafer handling, MeetFuture Technology, Gyrobot |
L&A | Daifuku, Dematic, SSI Schaefer, KNAPP, Mirle, Kenmec |
Textile Machinery | Rieter (with Barmag), Saurer, Savio, Chinese makers |
Machine Tools | Okuma, Mazak, DMG Mori in turning; Amada, Trumpf, Bystronic in sheet metal |
Communication Equipment | Office MFP makers, security appliance and MES vendors |
Competitor | Period |
Daifuku | Dec 2025 |
SFA Engineering, consolidated | Dec 2025 |
SEMES, front-end | 2,025 |
Mirle Automation | Dec 2025 |
Symtek Automation Asia | 2,025 |
Rorze | Feb 2026 |
Rieter | Dec 2025 |
Peer Comparison FY2027
| Measure | Murata Machinery (FY Mar 2026) | Daifuku (FY Dec 2025) | SFA Engineering (FY Dec 2025) | Rieter (FY Dec 2025) |
|---|---|---|---|---|
Revenue | JPY 520.8 bn | JPY 660.7 bn | KRW 1.63 tn | CHF 685.1 M |
Growth (%) | -1.0 | 2.6 | -20.3 | -20.0 |
Operating margin (%) | 16.8 | 15.3 | 5.3 | 0.4 |
Net margin (%) | 13.2 | 11.8 | — | Negative |
“—” = not publicly disclosed.
