［Delayed］Supplementary Information to Consolidated Financial Results (January 1, 2025 - December 31, 2025) ISEKI & CO., LTD.
February 13, 2026
Index
1. | Outline of Financial Results for the Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 |
Key Points
Financial Results for the Fiscal Year Ended December 31, 2025
PL YoY Change: Higher sales and operating profit (Higher than the forecast announced on Nov. 14) Expected effects of Project Z for 2025 have progressed as planned
Record-high net sales
BS Inventories: Significant decrease -¥9.1 billion from Dec. 31, 2024 Interest-bearing liabilities: Significant reduction -¥13.3 billion from Dec. 31, 2024
CF Cash flows from operating activities: Record high at positive ¥23.4 billion
Dividend Planned year-end dividend at ¥40 per share (an increase of ¥10 per share YoY)
Forecast for the Fiscal Year Ending December 31, 2026
Full-year Forecast | : | Net sales ¥180.0 billion | (YoY change: -¥5.7 billion, -3.1%) |
Operating profit ¥6.0 billion | (YoY change: +¥1.7 billion, +42.0%) | ||
Operating margin 3.3% | (YoY change: +¥1.0%) | ||
Profit ¥3.0 billion | (YoY change: +¥0.2 billion, +8.8%) | ||
Dividend Forecast | : | ¥45 per share (YoY change: an increase of ¥5 per share) | |
・Despite lower sales, operating profit is expected to increase due to positive effects of Project Z
・A dividend increase is planned (two consecutive years)
1. | Outline of Financial Results for the Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 |
Main factors of YoY changes
Higher sales and operating profit
Record-high net sales (significant growth for domestic sales and solid growth for overseas sales)
Domestic Sales | : | Domestic sales increased as a result of accurately capturing farmers' strong purchasing appetite Maintenance revenues continued to grow |
Overseas Sales: | : | Performance remained stable in Europe, and a sales increase in Asia exceeded a sales decline in North America, resulting in overall sales growth |
Operating Profit | : | Higher operating profit was due to the increases in domestic and overseas sales and the positive effect of price revisions |
Profit | : | Profit increased significantly driven by gain on sale of non-current assets and the absence of share of loss of entities accounted for using equity method and impairment losses with structural reforms in the previous fiscal year |
(JPY bn, unless otherwise noted) | FY2024/12 Actual | FY2025/12 | |||
Actual | YoY Change | Difference *1 (Forecast/Actual) | |||
Net Sales | 168.4 | 185.7 | +17.3 | +4.7 | |
(Domestic) | 113.0 | 129.4 | +16.4 | +3.9 | |
(Overseas) | 55.3 | 56.3 | +0.9 | +0.8 | |
Gross Profit | 50.6 | 55.6 | +5.0 | ||
Gross Profit Margin (%) | 30.1% | 30.0% | -0.1% | ||
Operating Profit | 1.9 | 4.2 | +2.3 | +0.2 | |
Operating Margin (%) | 1.1% | 2.3% | +1.2% | +0.1% | |
Ordinary Profit | 1.5 | 4.1 | +2.5 | +1.0 | |
Profit (Loss) Attributable to Owners of Parent | (3.0) | 2.7 | +5.7 | +0.4 | |
Average *2 Exchange Rate (JPY) | US$ | 151.7 | 149.9 | -1.9 | +0.9 |
Euro | 164.8 | 169.1 | +4.3 | +2.1 |
Year-end Dividend Per Share (JPY) | 30 | 40 | +10 | ±0 |
ROE (%) | -4.4% | 3.9% | +8.3% |
Main factors of YoY change in profit (Positive: profit improvement, JPY bn) | |
Increase in operating profit | +¥2.3 |
Deterioration of foreign exchange gains (losses) | -¥0.2 |
Elimination of share of loss of entities accounted for using equity method | +¥0.8 |
Gain on sale of non-current assets | +¥1.0 |
Decrease in impairment losses (Recorded in the previous fiscal year due to structural reforms) | +¥2.1 |
*1: Difference from the forecast announced on November 14, 2025
*2: From 2025, the PL conversion rate for overseas subsidiaries has been changed to the average rate during the fiscal year. (Previously the rate at the end of each fiscal year was used.)
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Main factors of YoY changes
Domestic sales increased as a result of accurately capturing farmer's strong purchasing appetite
Maintenance revenues continued to grow
(Reference)
Revision of ISEKI's agricultural machinery prices
Maintenance
Agricultural Machinery
Timing | Revision rate |
Jun. 2022 | About 3% |
Apr. 2023 | About 5% |
Mar. 2024 | About 3% |
Jul. 2025 | About 7% |
Ratio of Revenue from Maintenance (%) | 19.1% | 19.5% | 20.5% | 19.5% | -1.0% |
Agricultural machinery/farming implements: Sales were strong in large-scale and advanced products |
Maintenance revenues: Maintenance revenues were a stable source of revenue, and sales increased steadily |
Construction of facilities: Sales increased due to the completion of multiple large facility projects |
(JPY bn, %) | FY2022/12 Actual | FY2023/12 Actual | FY2024/12 Actual | FY2025/12 | |||
Actual | YoY Change | ||||||
Agricultural Machinery Related | Cultivating & Mowing Machinery | 22.9 | 22.0 | 21.2 | 24.3 | +3.0 | |
Planting Machinery | 7.9 | 7.2 | 6.5 | 8.1 | +1.5 | ||
Harvesting & Processing Machinery | 16.0 | 15.7 | 16.3 | 18.6 | +2.3 | ||
Subtotal | 46.9 | 45.0 | 44.1 | 51.1 | +6.9 | ||
Spare Parts | 15.6 | 16.0 | 16.9 | 18.4 | +1.5 | ||
Repair Fees | 5.8 | 6.0 | 6.2 | 6.7 | +0.5 | ||
Subtotal | 21.5 | 22.0 | 23.1 | 25.2 | +2.0 | ||
Farming Implements | 20.5 | 20.4 | 21.0 | 28.2 | +7.1 | ||
Total | 88.9 | 87.5 | 88.4 | 104.6 | +16.2 | ||
Construction of Facilities | 4.3 | 5.5 | 4.1 | 5.9 | +1.7 | ||
Others | 19.3 | 19.9 | 20.4 | 18.8 | -1.5 | ||
Total | 112.6 | 113.0 | 113.0 | 129.4 | +16.4 | ||
Main factors of YoY changes
Performance remained stable in Europe, and a sales increase in Asia exceeded a sales decline in North America, resulting in overall sales growth
(JPY bn, %) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | |
Actual | Actual | Actual | Actual | YoY Change | |
Europe | 25.1 | 33.2 | 38.5 | 38.5 | -0.0 |
North America | 19.5 | 14.2 | 11.2 | 10.4 | -0.7 |
Asia | 8.6 | 8.1 | 4.9 | 6.9 | +1.9 |
Others | 0.6 | 1.1 | 0.5 | 0.3 | -0.2 |
Total | 53.9 | 56.8 | 55.3 | 56.3 | +0.9 |
Overseas Sales Ratio | 32.4% | 33.5% | 32.9% | 30.3% | -2.6% |
Europe: Sales remained the same level as the previous fiscal year, when there was special demand for purchased products at ISEKI-Maschinen GmbH in Germany, due to the stable performance mainly in consumer products at ISEKI France in France and the consolidation of ISEKI UK & Ireland in the UK |
North America: The compact tractors market remained weak |
Asia: Shipments recovered after the completion of inventory adjustments in South Korea, and shipments for government tenders increased due to an increase in agricultural machinery budget in Indonesia |
Operating Profit
・ Higher operating profit was due to the increases in domestic and overseas sales and the
positive effect of price revisions
(JPY bn, %) | FY2024/12 Actual | FY2025/12 Actual | YoY Chage | |
Net Sales | 168.4 | 185.7 | +17.3 | |
Gross Profit | 50.6 | 55.6 | +5.0 | |
Gross Profit Margin | 30.1% | 30.0% | -0.1% | |
SG&A Expenses | 48.7 | 51.4 | +2.7 | |
Personnel Expenses | 27.6 | 29.3 | +1.7 | |
Other Expenses | 21.0 | 22.0 | +0.9 | |
Operating Profit | 1.9 | 4.2 | +2.3 | |
Operating Margin | 1.1% | 2.3% | +1.2% | |
[Breakdown of YoY change (+¥2.3 billion)]
1.9
FY2024/12
FY2025/12
4.2
Gross profit increase: +¥5.0 billion
+4.5 | +2.2 | -1.4 | +0.3 | -0.6 | -2.7 |
Higher Sales | Price | Production Costs | FOREX Fluctuations | Others | SG&A |
[Effect of FOREX fluctuations (impact of income/losses, JPY bn)]
Net Sales | Cost of Sales | SG&A Expenses | Operating Profit |
+0.6 | -0.3 | -0.1 | +0.1 |
(Reference) [Project Z
(impact of income/losses, JPY bn)]
Operating Profit | Plan | Actual |
Effect | +1.5 | +1.5 |
Temporary expenses* | -0.8 | -0.8 |
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* Expenses for transfer of production, consolidation of sales companies, and others
Balance Sheet
・ | Strong performance in domestic sales led to a significant decrease in inventories |
・ | Interest-bearing liabilities were also reduced significantly |
(JPY bn) | As of Dec. 31, 2024 | As of Dec. 31, 2025 | Change from Dec. 31, 2024 | As of Dec. 31, 2024 | As of Dec. 31, 2025 | Change from Dec. 31, 2024 | |
Cash & Deposits | 8.2 | 12.8 | +4.6 | Accounts Payable-Trade | 25.2 | 26.9 | +1.6 |
Accounts Receivable-Trade | 25.4 | 26.4 | +1.0 | Interest-bearing Liabilities | 75.4 | 62.1 | -13.3 |
Inventories | 66.9 | 57.7 | -9.1 | (Loans Payable) | 68.1 | 54.9 | -13.1 |
Other Current Assets | 5.0 | 5.3 | +0.2 | Accounts Payable-Other | 10.2 | 13.9 | +3.6 |
Other Liabilities | 23.2 | 28.0 | +4.7 | ||||
Total Current Assets | 105.6 | 102.4 | -3.1 | Total Liabilities | 134.2 | 131.0 | -3.2 |
Property, Plant and Equipment | 81.3 | 83.6 | +2.2 | Net assets | 71.8 | 78.4 | +6.5 |
Intangible Assets | 2.9 | 3.9 | +0.9 | ||||
Investments and Other Assets | 16.1 | 19.4 | +3.2 | (Retained Earnings) | 16.6 | 19.1 | +2.5 |
Total Non-current Assets | 100.5 | 107.0 | +6.5 | ||||
Total Assets | 206.1 | 209.4 | +3.3 | Total Liabilities and Net Assets | 206.1 | 209.4 | +3.3 |
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Interest-bearing Liabilities / Equity Ratio / Dividend[Interest-bearing liabilities / Equity Ratio] [Dividend]
Balance of Interest-bearing Liabilities (JPY bn)
(JPY)
32.9
35.2
31.9
32.8
76.9
75.4
68.1
62.1
FY2024/12 Actual | FY2025/12 Plan | |
Year-end dividend | 30 | 40 |
100.0 40
35
Equity Ratio
30
80.0 25
20
%
（ ）
60.0 15
10
5
(JPY bn) | Dec. 2022 | Dec. 2023 | Dec. 2024 | Dec. 2025 |
Loans Payable | 61.1 | 69.8 | 68.1 | 54.9 |
Lease Obligations | 7.0 | 7.1 | 7.3 | 7.1 |
Total Interest-bearing Liabilities | 68.1 | 76.9 | 75.4 | 62.1 |
Net Assets | 72.3 | 74.2 | 71.8 | 78.4 |
D/E Ratio | 0.94 | 1.04 | 1.05 | 0.79 |
40.0 0
* D/E ratio = Interest-bearing liabilities (incl. lease obligations) / Net assets
The D/E ratio stood at 0.79 due to the significant reduction of interest-bearing liabilities
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Cash Flows
・ | Cash flows from operating activities improved significantly due to an increase in profits and a decrease in inventories. The sale of non-current assets led to a further improvement in free cash flow |
(JPY bn) | FY2022/12 Actual | FY2023/12 Actual | FY2024/12 Actual | FY2025/12 Actual | YoY Change | |
Cash Flows from Operating Activities | (3.3) | (2.4) | 8.8 | 23.4 | +14.6 | |
Profit Before Income Taxes | 5.2 | 1.9 | (1.5) | 4.4 | +5.9 | |
Depreciation | 6.1 | 5.6 | 5.4 | 5.2 | -0.2 | |
Impairment Losses | (1.5) | 0.0 | 2.3 | 0.2 | -2.0 | |
Decrease (Increase) in Trade Receivables | (5.1) | 1.2 | 1.8 | (1.6) | -3.5 | |
Decrease (Increase) in Inventories | (11.4) | (6.3) | 7.4 | 11.9 | +4.5 | |
Increase (Decrease) in Trade Payables | 5.4 | (4.5) | (16.9) | 1.6 | +18.6 | |
Increase (Decrease) in Accounts Payable - Other | (0.1) | 0.0 | 9.7 | 3.4 | -6.3 | |
Other, Net | (1.8) | (0.3) | 0.5 | (1.8) | -2.3 | |
Cash Flows from Investing Activities | (2.9) | (5.4) | (5.8) | (4.4) | +1.4 | |
Purchase of Property, Plant and Equipment and Intangible Assets | (4.8) | (5.7) | (5.7) | (6.5) | -0.8 | |
Proceeds from Sale of Property, Plant and Equipment and Intangible Assets | 0.4 | 0.3 | 0.5 | 1.9 | +1.3 | |
Free Cash Flow | (6.3) | (7.8) | 2.9 | 19.0 | +16.0 | |
Cash Flows from Financing Activities | 2.0 | 6.7 | (5.0) | (15.1) | -10.0 | |
Capital Investment, Depreciation and Research & Development Expenses
[Capital investment (JPY bn)] [Depreciation, Research & Development
* Property, plant and equipment and intangible assets after delivery
12.5
Expenses (JPY bn)]
5.6
5.6
5.6
5.7
FY2024/12 Actual | FY2025/12 Actual | |
Depreciation | 5.43 | 5.20 |
Research & development expenses | 1.46 | 1.93 |
FY2022/12
Actual
FY2023/12
Actual
FY2024/12
Actual
FY2025/12
Actual
FY2026/12
Plan*
* Capital investment plan for 2026 ¥12.5 billion Of which, investment in optimization ¥8.0 billion
FY2024/12 | FY2025/12 | |
Sales offices | 1.6 | 1.4 |
Increasing productivity | 1.2 | 2.6 |
Information technology | 0.3 | 0.3 |
Other | 2.5 | 1.4 |
Total | 5.6 | 5.7 |
(Breakdown)
1. | Outline of Financial Results for the Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 |
Forecast of Consolidated Financial Results for the Fiscal Year
Ending December 31, 2026
・ | Despite lower sales, operating profit is expected to increase due to positive effects of Project Z |
・ | The dividend is planned to increase by ¥5 to ¥45 per share (two consecutive years of increases) |
(JPY bn, %) | FY2023/12 Actual | FY2024/12 Actual | FY2025/12 Actual | FY2026/12 | ||
Forecast | YoY Change | |||||
Net Sales | 169.9 | 168.4 | 185.7 | 180.0 | -5.7 | |
(Domestic) | 113.0 | 113.0 | 129.4 | 120.0 | -9.4 | |
(Overseas) | 56.8 | 55.3 | 56.3 | 60.0 | +3.6 | |
Operating profit | 2.2 | 1.9 | 4.2 | 6.0 | +1.7 | |
Operating Margin | 1.3% | 1.1% | 2.3% | 3.3% | +1.0% | |
Ordinary profit | 2.0 | 1.5 | 4.1 | 4.9 | +0.7 | |
Profit (Loss) Attributable to Owners of Parent | 0.0 | (3.0) | 2.7 | 3.0 | +0.2 | |
Average Exchange Rate (JPY) | US$ | 139.7 | 151.7 | 149.9 | 150 | +0.1 |
Euro | 156.6 | 164.8 | 169.1 | 175 | +5.9 |
Year-end Dividend Per Share (JPY) | 30 | 30 | 40 | 45 | +5 |
ROE (%) | 0.0% | -4.4% | 3.9% (2.4%)*1 | 4.0% | +0.1% |
Main
Domestic Sales Forecast・ | Despite demand remaining steady, sales are expected to decrease due to a temporary shortage in production capacity |
(JPY bn) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | FY2026/12 | YoY Change | ||
Actual | Actual | Actual | Actual | Forecast | ||||
Agricultural Machinery Related | Agricultural Machinery | 46.9 | 45.0 | 44.1 | 51.1 | 46.0 | -5.1 | |
tenance | Spare Parts | 15.6 | 16.0 | 16.9 | 18.4 | 18.5 | +0.0 | |
Repair Fees | 5.8 | 6.0 | 6.2 | 6.7 | 6.8 | +0.0 | ||
Subtotal | 21.5 | 22.0 | 23.1 | 25.2 | 25.3 | +0.0 | ||
Farming Implements | 20.5 | 20.4 | 21.0 | 28.2 | 25.0 | -3.2 | ||
Total | 88.9 | 87.5 | 88.4 | 104.6 | 96.3 | -8.3 | ||
Construction of Facilities | 4.3 | 5.5 | 4.1 | 5.9 | 4.8 | -1.1 | ||
Others | 19.3 | 19.9 | 20.4 | 18.8 | 18.9 | +0.0 | ||
Total | 112.6 | 113.0 | 113.0 | 129.4 | 120.0 | -9.4 | ||
Ratio of Revenue from Maintenance (%) | 19.1% | 19.5% | 20.5% | 19.5% | 21.1% | +1.6% | ||
Overseas Sales Forecast
・ | Sales are expected to increase due to solid demand in Europe and the compact tractor market bottoming out in North America |
(JPY bn, %) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | FY2026/12 | |
Actual | Actual | Actual | Actual | Forecast | YoY Change | |
Europe | 25.1 | 33.2 | 38.5 | 38.5 | 41.8 | +3.2 |
North America | 19.5 | 14.2 | 11.2 | 10.4 | 11.3 | +0.8 |
Asia | 8.6 | 8.1 | 4.9 | 6.9 | 6.5 | -0.4 |
Others | 0.6 | 1.1 | 0.5 | 0.3 | 0.4 | +0.0 |
Total | 53.9 | 56.8 | 55.3 | 56.3 | 60.0 | +3.6 |
Overseas Sales Ratio | 32.4% | 33.5% | 32.9% | 30.3% | 33.3% | +3.0% |
・ Despite the impact of lower sales due to a temporary shortage in production capacity, operating profit is expected to increase owing to the emergence of Project Z effects and the
positive effect of price revisions
[Breakdown of YoY change (+¥1.7 billion)]
[Project Z (impact of income/losses compared to 2024, JPY bn)]
6.0
FY2025/12
FY2025/12
4.2
Operating profit | 2025 Cumulative | 2026 Cumulative | YoY Change |
Effect | 1.5 | 3.8 | +2.3 |
Temporary expenses | 0.8 | 0.3 | -0.5 |
Net | 0.7 | 3.5 | +2.8 |
-1.7 +1.1 +2.2 -0.9 +0.3 +0.7
Lower Sales | Product Margin Improvement | Price | Production Costs | Others* | SG&A* |
* Figures include a decrease in temporary expenses incurred in 2025 in connection with Project Z 17
Trends in Consolidated Financial Results (Quarterly)
Overseas sales
Domestic sales Operating profit(Net sales: JPY bn)
0.7
1.4
1.6
0.8
1.3
(1.1)
54.6
(1.7)
43.9
47.1
46.1
42.8
37.4
39.8
42.0
24.3
30.4
26.4
39.3
28.7
29.4
32.2
31.3
19.5
16.6
19.7
8.6
10.4
15.3
10.5
10.7
2.9
(Operating profit: JPY bn)
・ | In 2026, the first half is off to a good start, and operating profit is expected to increase in the second half due to the positive effects of new products |
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2024/12
FY2025/12 FY2026/12 (Forecast) 18
Notes on the Future Forecast
The objective of this presentation document is to provide information and never intends to induce any action.
The document was created by ISEKI with currently available information, and it involves potential risks and uncertainties. The forecast may not be consistent with actual results depending on fluctuation of the economic situation and market trends.
In using this information, investors are expected to depend on their own judgment. ISEKI is not liable for any losses incurred by investment decision made utilizing the business forecast or targets given in this document.
These documents have been translated for reference purposes only. In the event of any discrepancy between these translated documents and their Japanese originals, the originals shall prevail.
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