［Delayed］Supplementary Information to Consolidated Financial Results (January 1, 2025 - September 30, 2025) ISEKI & CO., LTD.
November 14, 2025
Index
1. | Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
Key Points
Higher sales and operating profit (9 months (Jan. to Sep.), year on year)
Continued significant growth for domestic sales and solid growth for overseas sales
Domestic Sales: | Domestic sales increased significantly as a result of capturing farmer's strong purchasing appetite against a backdrop of rising rice prices |
Overseas Sales: | Overseas sales remained on an upward trend as lower sales in North America due to the weak market conditions were more than offset by strong performance in Europe and Asia |
Operating Profit: | Higher operating profit was due to the increases in domestic and overseas sales and the positive effect of price increases carried out in the past fiscal years |
Profit: | Profit increased significantly driven by the sale of non-current assets and the absence of impairment losses with structural reforms in the previous fiscal year |
Project Z: | Expected effects for 2025 have progressed as planned |
Second Upward Revision to the Full-year Forecast, dividend increase
Full-year Forecast (Compared to the previous forecast announced on August 8): | Net sales ¥181.0 billion (+¥5.5 billion) Operating profit ¥4.0 billion (+¥0.5 billion) Profit ¥2.3 billion (+¥0.5 billion) |
Dividend Forecast: | ¥40 per share (an increase of ¥10 per share from the previous forecast announced on February 14) |
1. | Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
Outline of Consolidated Business Performance
(JPY bn, unless otherwise noted) (January 1, 2025 to September 30, 2025) | FY2022/12 3Q Actual | FY2023/12 3Q Actual | FY2024/12 3Q Actual | FY2025/12 | ||
3Q Actual | YoY Change | |||||
Net Sales | 125.3 | 132.9 | 128.5 | 143.7 | +15.1 | |
(Domestic) | 85.0 | 86.5 | 83.6 | 98.1 | +14.4 | |
(Overseas) | 40.2 | 46.4 | 44.9 | 45.5 | +0.6 | |
Gross Profit | 37.2 | 39.8 | 38.8 | 43.1 | +4.2 | |
Gross Profit Margin (%) | 29.7% | 30.0% | 30.3% | 30.0% | -0.3% | |
Operating Profit | 3.1 | 3.6 | 3.1 | 5.9 | +2.8 | |
Operating Margin (%) | 2.5% | 2.7% | 2.4% | 4.2% | +1.8% | |
Ordinary Profit | 3.8 | 3.8 | 2.9 | 5.3 | +2.4 | |
Profit (Loss) Attributable to Owners of Parent | 3.4 | 2.0 | (0.5) | 4.1 | +4.6 | |
Average * Exchange Rate (JPY) | US$ | 126.0 | 137.6 | 150.5 | 148.9 | -1.6 |
Euro | 141.4 | 157.4 | 159.7 | 165.4 | +5.7 |
* 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.) 5
Trends in Consolidated Financial Results (Quarterly)
(Net sales: JPY bn)
54.6
47.9
45.8
46.5
43.9
47.1
46.1
42.8
38.7
2.7 38.6
41.2
40.5
36.9
37.4
39.8
2.9
37.2
1.6
1.0
1.4
1.3
1.6
0.5
0.8
0.8
0.3
0.7
(0.2)
(1.3)
(1.1)
(1.9)
60.0
50.0
40.0
30.0
20.0
10.0
(Operating profit: JPY bn)
5.0
4.0
3.0
2.0
1.0
0.0
(1.0)
(2.0)
0.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
(3.0)
(Current Forecast)
FY2022 FY2023 FY2024 FY2025
Main factors of YoY changes
Capturing farmer's strong purchasing appetite against a backdrop of rising rice prices
(Reference)
Revision of ISEKI's agricultural machinery prices
Maintenance
A
Timing | Price increase |
Jun. 2022 | About 3% |
Apr. 2023 | About 5% |
Mar. 2024 | About 3% |
Jul. 2025 | About 7% |
Ratio of Revenue from Maintenance (%) | 19.2% | 19.6% | 20.8% | 18.7% | -2.1% |
Agricultural machinery (contract): Despite a temporarily decline due to the price revision in July, sales recovered to the previous year's level in September |
Farming implements/maintenance revenues: Sales increased steadily as a stable source of revenue |
Construction of facilities: Sales increased due to the completion of multiple large facility projects |
(JPY bn, %) (January 1, 2025 to September 30, 2025) | FY2022/12 3Q Actual | FY2023/12 3Q Actual | FY2024/12 3Q Actual | FY2025/12 | |||
3Q Actual | YoY Change | ||||||
Agricultural Machinery Related | gricultural Machinery | Cultivating & Mowing Machinery | 18.1 | 17.0 | 16.0 | 18.5 | +2.5 |
Planting Machinery | 6.5 | 5.9 | 5.1 | 6.5 | +1.3 | ||
Harvesting & Processing Machinery | 11.4 | 11.3 | 11.1 | 14.1 | +3.0 | ||
Subtotal | 36.1 | 34.4 | 32.3 | 39.3 | +6.9 | ||
Spare Parts | 11.9 | 12.3 | 12.7 | 13.3 | +0.6 | ||
Repair Fees | 4.4 | 4.5 | 4.6 | 5.0 | +0.3 | ||
Subtotal | 16.3 | 16.9 | 17.3 | 18.3 | +0.9 | ||
Farming Implements | 15.2 | 15.4 | 15.7 | 20.8 | +5.0 | ||
Total | 67.7 | 66.7 | 65.5 | 78.5 | +13.0 | ||
Construction of Facilities | 3.2 | 4.8 | 2.8 | 5.2 | +2.4 | ||
Others | 14.0 | 14.8 | 15.3 | 14.3 | -0.9 | ||
Total | 85.0 | 86.5 | 83.6 | 98.1 | +14.4 | ||
Main factors of YoY changes
Lower sales in North America were more than offset by strong performance in Europe and Asia
(JPY bn, %) (January 1, 2025 to September 30, 2025) | FY2022/12 3Q Actual | FY2023/12 3Q Actual | FY2024/12 3Q Actual | FY2025/12 | |
3Q Actual | YoY Change | ||||
Europe | 19.8 | 27.6 | 31.2 | 31.3 | +0.1 |
North America | 13.1 | 10.7 | 9.1 | 7.6 | -1.4 |
Asia | 6.7 | 7.0 | 4.0 | 6.2 | +2.2 |
Others | 0.5 | 1.0 | 0.5 | 0.3 | -0.2 |
Total | 40.2 | 46.4 | 44.9 | 45.5 | +0.6 |
Overseas Sales Ratio | 32.1% | 34.9% | 35.0% | 31.7% | -3.3% |
Europe: The absence of special demand for purchased products in Germany was more than offset by the stable performance in France, the consolidation of PTC Limited in the UK, and the impact of weaker yen |
Noth America: ISEKI's net sales declined as the compact tractors market remained weak |
Asia: Sales increased mainly in Korea and Indonesia |
Operating Profit
・ | Higher operating profit was due to the increases in domestic and overseas sales and the positive effect of price increases carried out in the past fiscal years |
(JPY bn, %) (January 1, 2025 to September 30, 2025) | FY2024/12 3Q Actual | FY2025/12 3Q Actual | YoY Change | |
Net Sales | 128.5 | 143.7 | +15.1 | |
Gross Profit | 38.8 | 43.1 | +4.2 | |
Gross Profit Margin | 30.3% | 30.0% | -0.3% | |
SG&A Expenses | 35.7 | 37.1 | +1.3 | |
Personnel Expenses | 20.2 | 21.1 | +0.9 | |
Other Expenses | 15.5 | 15.9 | +0.4 | |
Operating Profit | 3.1 | 5.9 | +2.8 | |
Operating Margin | 2.4% | 4.2% | +1.8% | |
[Breakdown of YoY change (+¥2.8 billion)]
+2.3 | +1.3 | -1.0 | +0.1 | +0.1 |
3.1
Higher Sales | Price | Production Costs | FOREX Fluctuations | Others |
FY2024/12 3Q
[Effect of FOREX fluctuations
(Reference) [Project Z
5.9
FY2025/12 3Q
Net Sales | Cost of Sales | SG&A Expenses | Operating Profit |
+1.0 | -0.7 | -0.2 | +0.1 |
(impact of income/losses, JPY bn)]
(impact of income/losses, JPY bn)]
Operating Profit | 3Q Actual | Full-year Forecast |
Effect | +1.0 | +1.5 |
Temporary expenses* | -0.6 | -0.8 |
* Expenses for transfer of production, consolidation of sales companies, and others
Ordinary Profit & Profit
・ | Profit increased significantly driven by gain on sale of non-current assets in the current fiscal year and the absence of impairment losses with structural reforms in the previous fiscal year |
(JPY bn) (January 1, 2025 to September 30, 2025) | FY2022/12 3Q Actual | FY2023/12 3Q Actual | FY2024/12 3Q Actual | FY2025/12 3Q Actual | YoY Change |
Operating Profit | 3.1 | 3.6 | 3.1 | 5.9 | +2.8 |
Financial Income (Expenses), Net | (0.5) | (1.1) | (1.0) | (1.1) | -0.0 |
Other Non-operating Income (Expenses), Net | 1.2 | 1.4 | 0.8 | 0.5 | -0.3 |
Ordinary Profit | 3.8 | 3.8 | 2.9 | 5.3 | +2.4 |
Extraordinary Income | 0.8 | 0.0 | 0.0 | 1.1 | +1.0 |
Extraordinary Losses | (0.2) | (0.1) | (2.3) | (0.2) | +2.1 |
Profit before income taxes | 4.4 | 3.7 | 0.6 | 6.2 | +5.6 |
Income Taxes-Deferred | (0.9) | (1.6) | (1.1) | (2.1) | -1.0 |
Profit (Loss) Attributable to Owners of Parent | 3.4 | 2.0 | (0.5) | 4.1 | +4.6 |
[Breakdown of major YoY change in other non-operating income (expenses), net (JPY bn)
Other non-operating income (expenses), net | |
Foreign exchange gains (losses) | -0.3 |
[Breakdown of major YoY change in extraordinary income/losses (JPY bn)]
Extraordinary income/losses (Positive: profit improvement) | |
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 |
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 Sep. 30, 2024 | As of Dec. 31, 2024 | As of Sep. 30, 2025 | YoY Change | Change from Dec. 31, 2024 | As of Sep. 30, 2024 | As of Dec. 31, 2024 | As of Sep. 30, 2025 | YoY Change | Change from Dec. 31, 2024 | |
Cash & Deposits | 7.6 | 8.2 | 10.1 | +2.5 | +1.9 | Accounts Payable-Trade | 23.3 | 25.2 | 25.7 | +2.3 | +0.4 |
Accounts Receivable-Trade | 35.0 | 25.4 | 40.3 | +5.3 | +14.9 | Interest-bearing Liabilities | 84.7 | 75.4 | 75.2 | -9.4 | -0.2 |
Inventories | 68.0 | 66.9 | 58.2 | -9.7 | -8.6 | (Loans Payable) | 77.1 | 68.1 | 68.3 | -8.7 | +0.2 |
Other Current Assets | 3.7 | 5.0 | 4.3 | +0.5 | -0.7 | Accounts Payable-Other | 9.7 | 10.2 | 12.0 | +2.3 | +1.8 |
Other Liabilities | 22.1 | 23.2 | 25.2 | +3.1 | +1.9 | ||||||
Total Current Assets | 114.4 | 105.6 | 113.1 | -1.3 | +7.5 | Total Liabilities | 139.9 | 134.2 | 138.2 | -1.6 | +3.9 |
Property, Plant and Equipment | 81.4 | 81.3 | 81.3 | -0.1 | -0.0 | Net assets | 74.1 | 71.8 | 77.9 | +3.7 | +6.1 |
Intangible Assets | 2.6 | 2.9 | 3.2 | +0.5 | +0.2 | ||||||
Investments and Other Assets | 15.5 | 16.1 | 18.4 | +2.9 | +2.3 | (Retained Earnings) | 19.4 | 16.6 | 20.5 | +1.0 | +3.8 |
Total Non-current Assets | 99.6 | 100.5 | 103.0 | +3.4 | +2.5 | ||||||
Total Assets | 214.1 | 206.1 | 216.2 | +2.0 | +10.0 | Total Liabilities and Net Assets | 214.1 | 206.1 | 216.2 | +2.0 | +10.0 |
Equity Ratio / Interest-bearing Liabilities
・ | The reduction of interest-bearing liabilities has led to the D/E ratio to drop below 1.0. |
Balance of Interest-bearing Liabilities (JPY bn)
100.0
80.0
60.0
40.0
35.0
32.1
32.1
32.3
34.0
81.5
84.7
77.4
75.2
Equity Ratio (%)
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Sep. 2022 | Sep. 2023 | Sep. 2024 | Sep. 2025 | |
Loans Payable | 70.0 | 74.4 | 77.1 | 68.3 |
Lease Obligations | 7.4 | 7.0 | 7.6 | 6.8 |
Total Interest-bearing Liabilities | 77.4 | 81.5 | 84.7 | 75.2 |
0.96 | ||||
D/E Ratio | 1.07 | 1.07 | 1.14 | 0.97 |
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) (January 1, 2025 to September 30, 2025) | FY2024/12 3Q Actual | FY2025/12 3Q Actual | YoY Change | |
Cash Flows from Operating Activities | (4.5) | 5.0 | +9.5 | |
Profit Before Income Taxes | 0.6 | 6.2 | +5.6 | |
Depreciation | 4.0 | 3.8 | -0.2 | |
Impairment Losses | 2.2 | 0.0 | -2.2 | |
Decrease (Increase) in Trade Receivables | (7.9) | (15.7) | -7.7 | |
Decrease (Increase) in Inventories | 5.1 | 10.2 | +5.0 | |
Increase (Decrease) in Trade Payables | (18.5) | 0.8 | +19.3 | |
Increase (Decrease) in Accounts Payable - Other | 9.2 | 1.7 | -7.5 | |
Other, Net | 0.6 | (2.1) | -2.7 | |
Cash Flows from Investing Activities | (4.3) | (2.7) | +1.6 | |
Purchase of Property, Plant and Equipment and Intangible Assets | (4.3) | (4.6) | -0.2 | |
Proceeds from Sale of Property, Plant and Equipment and Intangible Assets | 0.3 | 1.8 | +1.4 | |
Free Cash Flow | (8.9) | 2.2 | +11.1 | |
Cash Flows from Financing Activities | 6.1 | (1.2) | -7.4 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (2.4) | 1.2 | +3.7 | |
(Ref.) FY2024/12 Full-year Actual |
8.8 |
(1.5) |
5.4 |
2.3 |
1.8 |
7.4 |
(16.9) |
9.7 |
0.5 |
(5.8) |
(5.7) |
0.5 |
2.9 |
(5.0) |
(1.7) |
・ Major measures of the fundamental structural reform have generally progressed as planned
・ Regarding the growth strategy, we continued stronger collaboration among
(JPY bn)
5.0
Positive effects on operating profit to emerge in 2027 compared to 2023 (JPY bn)
2027
¥7.5 billion or above
consolidated subsidiaries in Europe for overseas and strengthened efforts to promote the expansion of non-agriculture sales channels in Japan
[Core themes]
0.0
2025
¥0.7 billio
Temporary expenses
2026
n
strategy
Progress toward 2027
Fundamental structural reforms | Optimize production |
| ・ The construction of new buildings at domestic factories has progressed as planned (completed in Shigenobu and Niigata) ・ The transfer of production of combine harvesters from Kumamoto has progressed as planned |
Optimize development |
| ・ The process of reducing models and types has moved into the execution phase as planned ・ Expected effects for 2025 have realized as planned. We are currently working to make up for a delay in our variable cost reduction activity | |
Deepen domestic sales |
| ・ Accelerating the improvement of operational efficiency through organizational integration by ISEKI Japan ・ Decrease in inventories has progressed beyond the plan | |
Transformation to a robust corporate structure |
| ・ The number of employees and labor costs maintained at the planned levels ・ Implemented specific measures for the review of operations | |
Growth | Concentrate management resources on growth segments | Overseas
| ・ Promoting synergy creation through collaboration among three consolidated subsidiaries in Europe |
Domestic
| ・ Large-scale, advanced, dry-field, and environmentally friendly Developing next-generation products ・ Developed the mowing business Explore new BtoB routes |
1. | Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
Forecast of Consolidated Financial Results for the Fiscal Year
Ending December 31, 2025・ Upward revision to net sales and profit
・ Increase of ¥10 per share in the year-end dividend
(JPY bn, ％) | FY2022/12 Actual | FY2023/12 Actual | FY2024/12 | FY2025/12 Forecast | Revision from Previous Forecast | YoY after Revision | |||||
Actual | % | Initial (Feb.) | Previous (Aug.) | Current (Nov.) | % | ||||||
Net Sales | 166.6 | 169.9 | 168.4 | 100.0 | 170.5 | 175.5 | 181.0 | 100.0 | +5.5 | +12.5 | |
(Domestic) (Overseas) | 112.6 53.9 | 113.0 56.8 | 113.0 55.3 | 67.1 32.9 | 113.5 57.0 | 120.0 55.5 | 125.5 55.5 | 69.3 30.7 | +5.5 - | +12.4 +0.1 | |
Operating profit | 3.5 | 2.2 | 1.9 | 1.1 | 2.6 | 3.5 | 4.0 | 2.2 | +0.5 | +2.0 | |
Ordinary profit | 3.7 | 2.0 | 1.5 | 0.9 | 1.8 | 2.6 | 3.1 | 1.7 | +0.5 | +1.5 | |
Profit (Loss) Attributable to Owners of Parent | 4.1 | 0.0 | (3.0) | - | 1.3 | 1.8 | 2.3 | 1.3 | +0.5 | +5.3 | |
Average*1 Exchange Rate (JPY) | US$ | 132.7 | 139.7 | 151.7 | 150.0*2 | 143.0 | 149.0 | +6.0 | -2.7 | ||
Euro | 140.7 | 156.6 | 164.8 | 157.0 | 165.0 | 167.0 | +2.0 | +2.2 | |||
Year-end Dividend (JPY) | 30 | 30 | 30 | 30 | 30 | 40 | +10 | +10 | |||
*1 From 2025, the PL conversion rate for overseas subsidiaries has been changed to the average rate during the fiscal year. (Previously, the fiscal year-end rate was used.)
*2 In the forecast announced in May, the revision was made only for the exchange rate (US$/JPY: 150.0 →143.0; Euro/JPY: no change) from the initial forecast (announced
on February 14, 2025) 16
Forecast of Consolidated Financial Results for the Fiscal Year
Ending December 31, 2025[Breakdown of YoY change (+¥2.0 billion)]
・ | Higher operating profit is expected to be due to the increase in domestic sales and the positive effect of price increases carried out in the past fiscal years |
・ | Effects of Project Z for 2025 is projected to progress as planned |
+1.6 | +2.0 | -1.6 | +0.1 | -0.0 |
[Project Z
(impact of income/losses, JPY bn)]
Operating profit | Plan | Full-year Forecast |
Effect | +1.5 | +1.5 |
Temporary expenses* | -0.8 | -0.8 |
FY2024/12
Full-year
FY2025/12
Full-year
* Expenses for transfer of production, consolidation of sales companies, and others
1.9
4.0
Higher sales | Price | Production Costs | FOREX Fluctuations | Others |
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.