# Howa Machinery, Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第188期(2025/04/01－2026/03/31) (S100YF38)
> Page: https://vizora.meequs.com/en/company/howa-machinery
> Retrieved: 2026-09-30T18:33:07.123Z

## Company

Howa Machinery, founded in 1907, is a company in Machine Tools listed on TSE Standard. It has 706 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Howa Machinery,Ltd. |
| Ticker | 6203 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6203.T) |
| Listing | TSE Standard |
| Head office | 愛知県清須市須ケ口1900番地1 |
| Representative (per filing) | 代表取締役社長 塚本 高広 |
| Founded | Feb 1907 |
| Share capital | ¥9.02B |
| Employees (consolidated) | 706 |
| Average salary (parent only) | ¥5.4M |
| Fiscal year end | March |
| Website | www.howa.co.jp (https://www.howa.co.jp/) |
| Corporate number | 7180001032621 |
| EDINET | E01515 |
| Industries (Vizora) | Machine Tools, Defense, Industrial Machinery, Housing Equipment & Building Materials, Real Estate Development & Leasing, Specialty Trading & Wholesale, Trucking & Parcel Delivery |

> Profile source: annual securities report (S100YF38, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Defense (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 30 | 5 |
| Profitability | 30 | 5 |
| Cash conversion | 70 | 5 |
| Efficiency | 50 | 5 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 37% of Howa Machinery's sales come from Firearms, with Machine tool and Accessories and Windows and Doors making up much of the rest.
- Out of every ¥100 of sales, about ¥5 is left as operating profit.
- Revenue changed -3.1% from the prior year, operating profit -5.3%.

## Company structure

- Segment revenue mix: Firearms 37.3%、Machine tool and Accessories 22.5%、Windows and Doors 13.4%、Sweepers 12.1%、Domestic-sales subsidiary 8.9%
- Revenue → net income: ¥24064000000 → ¥741000000
- Net income → operating cash flow: ¥741000000 → ¥4811000000（difference ¥4070000000）
- Main uses of operating cash flow: CapEx ¥292000000 / dividends ¥244000000 / buybacks ¥0
- Change in cash: ¥3262000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥24.1B |  |
| Operating income | ¥1.19B | Margin 4.9% |
| Net income | ¥741M | Margin 3.1% |
| Free cash flow | ¥4.52B |  |
| Largest business | Firearms | of segment revenue 37.3% |
| Employees (consolidated) | 706 |  |
| EPS | ¥66.56 |  |
| Book value per share | ¥1530.72 |  |
| Equity ratio | 58.7% |  |
| Shares outstanding | 12,548,134 |  |
| Treasury shares | 306,400 |  |
| Shareholders | 14,042 |  |
| Average salary (parent only) | ¥5.4M | Filing company only |
| Cash ratio | 17.1% | Cash ÷ revenue 25.4% |
| Vs. industry median margin | -2.1 pp | Defense |
| ROE | 4.7% | Derived from disclosed figures |
| ROA | 2.1% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 6.5× net income

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥18765000000 | ¥24064000000 | +28.2% |
| Operating income | ¥554000000 | ¥1186000000 | +114.1% |
| Operating margin | 3.0% | 4.9% | +2 pp |
| Employees | 845 people | 706 people | -16.4% |
| Cash and equivalents | ¥3427000000 | ¥6114000000 | +78.4% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 工作機械関連 → 工作機械関連 | 22.5% |
| 工作機械関連 → 事業再編・廃止 | 13.1% |
| 火器 → 火器 | 15.5% |
| 特装車両 → 特装車両 | 12.1% |
| 特装車両 → 事業再編・廃止 | 3.1% |
| 建材 → 建材 | 13.4% |
| 建材 → 事業再編・廃止 | 2.7% |
| 不動産賃貸 → 不動産賃貸 | 2.1% |
| 不動産賃貸 → 事業再編・廃止 | 0.4% |
| 国内販売子会社 → 国内販売子会社 | 8.9% |
| 国内販売子会社 → 事業再編・廃止 | 1.4% |
| 国内運送子会社 → 国内運送子会社 | 3.1% |
| 国内運送子会社 → 事業再編・廃止 | 0.6% |
| その他 → その他 | 0.5% |
| その他 → 事業再編・廃止 | 0.5% |
| 新設・再編 → 火器 | 21.8% |

Segment revenue source references: 16 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Firearms | 5 years | +25.3% | ¥8965000000 | 14.0% | 2 |
| Machine tool and Accessories | 5 years | -4.1% | ¥5421000000 | -18.8% | 2 |
| Windows and Doors | 5 years | +1.4% | ¥3232000000 | 8.5% | 2 |
| Sweepers | 5 years | +0.4% | ¥2922000000 | 1.3% | 2 |
| Domestic-sales subsidiary | 5 years | +2.1% | ¥2144000000 | 4.8% | 2 |
| Domestic-transportation subsidiary | 5 years | +1.5% | ¥742000000 | 6.5% | 2 |
| Lease of immovable property | 5 years | +1.8% | ¥508000000 | 80.9% | 2 |
| Other | 5 years | -8.6% | ¥126000000 | 53.2% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 24,064 | 100.0% | S100YF38 |
| Cost of revenue | 19,835 | 82.4% | S100YF38 |
| Gross profit | 4,228 | 17.6% | S100YF38 |
| SG&A | 3,041 | 12.6% | S100YF38 |
| Operating income | 1,186 | 4.9% | S100YF38 |
| Ordinary income | 1,382 | 5.7% | S100YF38 |
| Pretax income | 1,338 | 5.6% | S100YF38 |
| Income tax | 597 | 2.5% | S100YF38 |
| Net income | 741 | 3.1% | S100YF38 |
| Net income attributable to owners | 741 | 3.1% | S100YF38 |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 82 |
| SG&A | 13 |
| Operating income | 5 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 17.6% → Operating margin 4.9% → Net margin 3.1%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -3.1%; Core profit growth: -5.3%
Operating leverage (core profit growth ÷ revenue growth): 1.74×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 24,827 | 24,064 | -763 | -3.1% |
| Gross profit | 4,203 | 4,228 | 25 | +0.6% |
| Operating income | 1,253 | 1,186 | -67 | -5.3% |
| Net income attributable to owners | 749 | 741 | -8 | -1.1% |
| Operating cash flow | 55 | 4,811 | 4,756 | +8647.3% |
| Free cash flow | -2,348 | 4,519 | 6,867 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 20,321 | 776 | 3.8% | 591 | 1,192 | 204 | S100LO4V |
| FY ending Mar 2021 | 18,765 | 554 | 3.0% | 968 | -1,270 | -2,023 | S100OBQG |
| FY ending Mar 2022 | 19,697 | 988 | 5.0% | 1,062 | 3,049 | 2,385 | S100R61O |
| FY ending Mar 2023 | 19,738 | 452 | 2.3% | 524 | -506 | -1,141 | S100TS38 |
| FY ending Mar 2024 | 19,786 | 388 | 2.0% | -873 | -1,071 | -2,234 | S100W3GN |
| FY ending Mar 2025 | 24,827 | 1,253 | 5.0% | 749 | 55 | -2,348 | S100YF38 |
| FY ending Mar 2026 | 24,064 | 1,186 | 4.9% | 741 | 4,811 | 4,519 | S100YF38 |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥34.1M |
| Operating income per employee (consolidated) | ¥1.7M |
| Net income per employee (consolidated) | ¥1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 846 | 797 | 755 | 739 | 706 |
| Average salary (parent company) | ¥5.2M | ¥5.2M | ¥5.3M | ¥5.4M | ¥5.4M |
| Average age (parent company) | 44.8 years | 45.7 years | 45.1 years | 45.4 years | 45.9 years |
| Average tenure (parent company) | 18.2 years | 17.3 years | 16.9 years | 16.1 years | 16.1 years |

Year over year: Employees (consolidated) -4.5% · Revenue (consolidated) -3.1%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Machine tool and Accessories | 5,421 | 22.5% | -1,017 | -18.8% |
| Firearms | 8,965 | 37.3% | 1,255 | 14.0% |
| Sweepers | 2,922 | 12.1% | 37 | 1.3% |
| Windows and Doors | 3,232 | 13.4% | 276 | 8.5% |
| Lease of immovable property | 508 | 2.1% | 411 | 80.9% |
| Domestic-sales subsidiary | 2,144 | 8.9% | 102 | 4.8% |
| Domestic-transportation subsidiary | 742 | 3.1% | 48 | 6.5% |
| Other | 126 | 0.5% | 67 | 53.2% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Machine tool and Accessories | 22.5% | — | — | -18.8% |
| Firearms | 37.3% | 57.1% | 19.9 | 14.0% |
| Sweepers | 12.1% | 1.7% | -10.5 | 1.3% |
| Windows and Doors | 13.4% | 12.6% | -0.9 | 8.5% |
| Lease of immovable property | 2.1% | 18.7% | 16.6 | 80.9% |
| Domestic-sales subsidiary | 8.9% | 4.6% | -4.3 | 4.8% |
| Domestic-transportation subsidiary | 3.1% | 2.2% | -0.9 | 6.5% |
| Other | 0.5% | 3.1% | 2.5 | 53.2% |

Loss-making segment (excluded from profit shares): Machine tool and Accessories -1,017 JPY mn

Segment → industry: Machine tool and Accessories → Machine Tools / Firearms → Defense / Sweepers → Industrial Machinery / Windows and Doors → Housing Equipment & Building Materials / Lease of immovable property → Real Estate Development & Leasing / Domestic-sales subsidiary → Specialty Trading & Wholesale / Domestic-transportation subsidiary → Trucking & Parcel Delivery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 4,811 | 20.0% | S100YF38 |
| Capital expenditure | 292 | 1.2% | S100YF38 |
| Free cash flow | 4,519 | 18.8% | 算出 |
| Investing cash flow | -120 | -0.5% | S100YF38 |
| Financing cash flow | -1,441 | -6.0% | S100YF38 |
| Dividends paid | 244 | 1.0% | S100YF38 |
| Share buyback | 0 | 0.0% | S100YF38 |
| Change in cash | 3,262 | 13.6% | S100YF38 |
| Cash and equivalents | 6,114 | 25.4% | S100YF38 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 4,360 | 3,265 | 3,826 | 2,852 | 6,114 | S100TS38, S100W3GN, S100YF38 |
| Total assets | 27,673 | 27,623 | 30,289 | 34,051 | 35,826 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Net assets | 16,890 | 17,354 | 17,334 | 18,736 | 21,025 | S100TS38, S100W3GN, S100YF38 |
| Share capital | 9,019 | 9,019 | 9,019 | 9,019 | 9,019 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Property, plant and equipment | 3,728 | 3,905 | 3,193 | 5,017 | 4,812 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Intangible assets excluding goodwill | 568 | 521 | 406 | 301 | 173 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Investment securities | 3,494 | 3,792 | 5,035 | 6,530 | 8,733 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Current assets | 19,248 | 18,776 | 21,033 | 21,604 | 21,269 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Current liabilities | 6,778 | 6,571 | 6,733 | 8,416 | 7,478 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Short-term borrowings | 882 | 1,452 | 2,032 | 3,472 | 2,634 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Long-term borrowings | 2,211 | 1,908 | 4,066 | 4,366 | 4,012 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Total liabilities | 10,783 | 10,269 | 12,955 | 15,314 | 14,801 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Equity attributable to owners of parent | 15,654 | 15,949 | 14,835 | 15,355 | 15,862 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Retained earnings | 7,062 | 7,346 | 6,231 | 6,736 | 7,233 | S100R61O, S100TS38, S100W3GN, S100YF38 |
| Treasury stock | -427 | -417 | -416 | -400 | -392 | S100R61O, S100TS38, S100W3GN, S100YF38 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 17% | S100YF38 |
| Property, plant and equipment | 13% | S100YF38 |
| Intangibles and goodwill | 1% | S100YF38 |
| Investment securities | 24% | S100YF38 |
| Other assets | 45% | S100YF38 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 41% | S100YF38 |
| Equity | 59% | S100YF38 |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 27,673 | 27,623 | 30,289 | 34,051 | 35,826 |
| Equity | 16,890 | 17,354 | 17,334 | 18,736 | 21,025 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 4,360 | 3,265 | 3,826 | 2,852 | 6,114 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 20.0% | S100YF38 |
| Fixed assets ÷ total assets | 13.4% | S100YF38 |
| Goodwill ÷ parent equity | — | —, S100YF38 |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 17.1% |
| Cash ÷ revenue | 25.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 405.6% |
| Cash vs. profit gap | 4,070 JPY mn (of net income 549.3%) |
| Shareholder returns / net income | 32.9% |
| Shareholder returns / FCF | 5.4% |
| Shareholder payments — dividends / net income | 32.9% |
| Shareholder payments — dividends / FCF | 5.4% |
| CapEx intensity (capex ÷ revenue) | 1.2% |
| Investing CF relative to operating CF | 2.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 5.4% | 0.71× | 3.8% | 1.77× | 6.8% | S100R61O |
| 2023 | 2.7% | 0.71× | 1.9% | 1.75× | 3.3% | S100TS38 |
| 2024 | — | —× | -3.0% | —× | — | S100W3GN |
| 2025 | 3.0% | 0.77× | 2.3% | 2.13× | 5.0% | S100YF38 |
| 2026 | 3.1% | 0.69× | 2.1% | 2.24× | 4.7% | S100YF38 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 株式会社日本カストディ銀行 | Major shareholder | 4.9% | 2026-03-31 |
| 日本生命保険相互会社 | Major shareholder | 4.3% | 2026-03-31 |
| 豊和工業協力グループ持株会 | Major shareholder | 4.0% | 2026-03-31 |
| 高橋 慧 | Major shareholder | 2.7% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社 | Major shareholder | 2.6% | 2026-03-31 |
| 鈴木 祐人 | Major shareholder | 2.5% | 2026-03-31 |
| BNY GCM CLIENT ACCOUNT JPRD AC ISG （FE-AC） （常任代理人 株式会社三菱ＵＦＪ銀行） | Major shareholder | 2.1% | 2026-03-31 |
| JP JPMSE LUX RE UBS AG LONDON BRANCH EQ CO （常任代理人 株式会社三菱ＵＦＪ銀行） | Major shareholder | 1.9% | 2026-03-31 |
| 豊和工業従業員持株会 | Major shareholder | 1.7% | 2026-03-31 |
| 株式会社三菱ＵＦＪ銀行 | Major shareholder | 1.6% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第188期(2025/04/01－2026/03/31) | S100YF38 | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YF38,, |
| 有価証券報告書－第187期(2024/04/01－2025/03/31) | S100W3GN | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W3GN,, |
| 有価証券報告書－第186期(2023/04/01－2024/03/31) | S100TS38 | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TS38,, |
| 有価証券報告書－第185期(2022/04/01－2023/03/31) | S100R61O | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R61O,, |
| 有価証券報告書－第184期(令和3年4月1日－令和4年3月31日) | S100OBQG | 2022-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OBQG,, |
| 有価証券報告書－第183期(令和2年4月1日－令和3年3月31日) | S100LO4V | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LO4V,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).