Makita raises FY3/26 operating profit forecast to ¥95 billion

Investing.com -- Power tool manufacturer Makita has raised its fiscal year 2026 operating profit guidance to ¥95 billion, up from its previous forecast of ¥74 billion, aligning with market expectations.

The revised figure, while still representing an 11% year-over-year decline, matches the FactSet consensus estimate of ¥95.2 billion. The substantial upward revision comes despite management’s typical tendency to provide conservative profit guidance.

The company has adjusted its sales outlook, slightly lowering forecasts for Western Europe due to macroeconomic uncertainties. However, this is offset by stronger-than-expected power tool sales in the United States, Asia, Latin America, and Oceania. Makita now anticipates better price hike effects, particularly in the U.S. market, and projects lower sales promotional costs than initially estimated.

In the updated forecast, the negative impact on FY3/26 operating profit from sales volume declines is now expected to be ¥4.5 billion (29.4 million units; -4% year-over-year) compared to the previous estimate of ¥9 billion. The company has also reduced its projected negative impact from sea freight costs to ¥1.2 billion from ¥2 billion, and from sales promotional costs to ¥8 billion from ¥12 billion.

Makita now forecasts overseas sales to decline 3% year-over-year on a local-currency basis for FY3/26, an improvement from the previous projection of a 5% decrease. European sales are expected to drop 4% year-over-year, with Western Europe growing 3% while Eastern Europe/Russia declining 16%.

For North America, the company has significantly improved its sales forecast to a 9% year-over-year decline, much better than the previously anticipated 29% drop. This improvement comes after Makita adjusted its supply chain strategy in response to U.S. tariffs on Chinese imports. The company’s current guidance incorporates a ¥2.8 billion tariff impact.

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