# RINNAI CORPORATION: 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76期(2025/04/01－2026/03/31) (S100YJCU)
> Page: https://vizora.meequs.com/en/company/rinnai
> Retrieved: 2026-09-30T21:36:12.050Z

## Company

Rinnai, founded in 1950, is a company in Housing Equipment & Building Materials listed on TSE Prime. It has 11,328 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | RINNAI CORPORATION |
| Ticker | 5947 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5947.T) |
| Listing | TSE Prime |
| Head office | 名古屋市中川区福住町2番26号 |
| Representative (per filing) | 代表取締役社長 内藤 弘康 |
| Founded | Sep 1950 |
| Share capital | ¥6.48B |
| Employees (consolidated) | 11,328 |
| Average salary (parent only) | ¥7.4M |
| Fiscal year end | March |
| Website | www.rinnai.co.jp (https://www.rinnai.co.jp/) |
| Corporate number | 2180001021323 |
| EDINET | E01417 |
| Industries (Vizora) | Housing Equipment & Building Materials |

> Profile source: annual securities report (S100YJCU, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: Housing Equipment & Building Materials (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 86.6 | 56 |
| Profitability | 94 | 58 |
| Cash conversion | 39 | 50 |
| Efficiency | 35.3 | 58 |

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 44% of Rinnai's sales come from Japan, with America and China making up much of the rest.
- Out of every ¥100 of sales, about ¥11 is left as operating profit.
- Revenue changed +2.2% from the prior year, operating profit +9.8%.

## Company structure

- Segment revenue mix: Japan 44.0%、America 15.3%、China 12.9%、Australia 9.4%、Other 7.3%
- Revenue → net income: ¥470392000000 → ¥43310000000
- Net income → operating cash flow: ¥43310000000 → ¥49298000000（difference ¥5988000000）
- Main uses of operating cash flow: CapEx ¥15291000000 / dividends ¥12554000000 / buybacks ¥10010000000
- Change in cash: ¥-1793000000
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 | ¥470.4B |  |
| Operating income | ¥50.5B | Margin 10.7% |
| Net income | ¥36.2B | Margin 7.7% |
| Free cash flow | ¥34B |  |
| Largest business | Japan | of segment revenue 44.0% |
| Employees (consolidated) | 11,328 |  |
| EPS | ¥225.18 |  |
| Book value per share | ¥1790.48 |  |
| Equity ratio | 67.3% |  |
| Shares outstanding | 141,126,000 |  |
| Treasury shares | 3,054,300 |  |
| Shareholders | 5,892 |  |
| Average salary (parent only) | ¥7.4M | Filing company only |
| Cash ratio | 20.7% | Cash ÷ revenue 28.6% |
| Vs. industry median margin | +6.3 pp | Housing Equipment & Building Materials |
| ROE | 9.9% | Derived from disclosed figures |
| ROA | 5.8% | Derived from disclosed figures |

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥344364000000 | ¥470392000000 | +36.6% |
| Operating income | ¥40690000000 | ¥50531000000 | +24.2% |
| Operating margin | 11.8% | 10.7% | -1.1 pp |
| Employees | 10,386 people | 11,328 people | +9.1% |
| Cash and equivalents | ¥166524000000 | ¥134506000000 | -19.2% |

### 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 |
| --- | ---: |
| 日本 → 日本 | 44.0% |
| 日本 → 事業再編・廃止 | 9.1% |
| アメリカ → アメリカ | 10.7% |
| オーストラリア → オーストラリア | 7.1% |
| 中国 → 中国 | 12.0% |
| 韓国 → 韓国 | 7.3% |
| 韓国 → 事業再編・廃止 | 0.9% |
| インドネシア → インドネシア | 3.3% |
| その他 → その他 | 5.6% |
| 新設・再編 → アメリカ | 4.6% |
| 新設・再編 → オーストラリア | 2.3% |
| 新設・再編 → 中国 | 0.9% |
| 新設・再編 → インドネシア | 0.5% |
| 新設・再編 → その他 | 1.8% |

Segment revenue source references: 14 (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 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Japan | 5 years | +2.5% | ¥207201000000 | 13.1% | 2 |
| America | 5 years | +14.3% | ¥72134000000 | 2.6% | 2 |
| China | 5 years | +8.1% | ¥60682000000 | 15.5% | 2 |
| Australia | 5 years | +12.6% | ¥44044000000 | 4.8% | 2 |
| Other | 5 years | +12.5% | ¥34489000000 | 15.0% | 2 |
| Korea | 5 years | +3.9% | ¥34284000000 | 3.2% | 2 |
| Indonesia | 5 years | +9.3% | ¥17555000000 | 21.9% | 2 |

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 470,392 | 100.0% | S100YJCU |
| Cost of revenue | 306,704 | 65.2% | S100YJCU |
| Gross profit | 163,687 | 34.8% | S100YJCU |
| SG&A | 113,156 | 24.1% | S100YJCU |
| Operating income | 50,531 | 10.7% | S100YJCU |
| Ordinary income | 57,686 | 12.3% | S100YJCU |
| Pretax income | 59,492 | 12.6% | S100YJCU |
| Income tax | 16,182 | 3.4% | S100YJCU |
| Net income | 43,310 | 9.2% | S100YJCU |
| Net income attributable to owners | 36,160 | 7.7% | S100YJCU |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 65 |
| SG&A | 24 |
| Operating income | 11 |
| (Ref.) Net income | 8 |

### Margin funnel

Gross margin 34.8% → Operating margin 10.7% → Net margin 7.7%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +2.2%; Core profit growth: +9.8%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.50×
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 | 460,319 | 470,392 | 10,073 | +2.2% |
| Gross profit | 156,062 | 163,687 | 7,625 | +4.9% |
| Operating income | 46,005 | 50,531 | 4,526 | +9.8% |
| Net income attributable to owners | 29,691 | 36,160 | 6,469 | +21.8% |
| Operating cash flow | 57,502 | 49,298 | -8,204 | -14.3% |
| Free cash flow | 40,101 | 34,007 | -6,094 | -15.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 340,460 | 34,422 | 10.1% | 21,561 | 37,694 | 27,301 | S100LMIM |
| FY ending Mar 2021 | 344,364 | 40,690 | 11.8% | 27,581 | 49,491 | 36,210 | S100OBSR |
| FY ending Mar 2022 | 366,185 | 35,864 | 9.8% | 23,748 | 28,696 | 7,857 | S100R0HV |
| FY ending Mar 2023 | 425,229 | 41,418 | 9.7% | 26,096 | 19,387 | -7,322 | S100TQUE |
| FY ending Mar 2024 | 430,186 | 39,362 | 9.1% | 26,667 | 43,347 | 5,987 | S100W18P |
| FY ending Mar 2025 | 460,319 | 46,005 | 10.0% | 29,691 | 57,502 | 40,101 | S100YJCU |
| FY ending Mar 2026 | 470,392 | 50,531 | 10.7% | 36,160 | 49,298 | 34,007 | S100YJCU |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥41.5M |
| Operating income per employee (consolidated) | ¥4.5M |
| Net income per employee (consolidated) | ¥3.2M |

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) | 10,777 | 11,150 | 10,837 | 10,908 | 11,328 |
| Average salary (parent company) | ¥6.5M | ¥6.7M | ¥6.8M | ¥7.1M | ¥7.4M |
| Average age (parent company) | 39.6 years | 40.2 years | 40.6 years | 40.7 years | 40.8 years |
| Average tenure (parent company) | 17.7 years | 18.3 years | 18.8 years | 18.9 years | 19.2 years |

Year over year: Employees (consolidated) +3.9% · Revenue (consolidated) +2.2%

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

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Japan | 207,201 | 44.0% | 27,115 | 13.1% |
| America | 72,134 | 15.3% | 1,856 | 2.6% |
| Australia | 44,044 | 9.4% | 2,110 | 4.8% |
| China | 60,682 | 12.9% | 9,415 | 15.5% |
| Korea | 34,284 | 7.3% | 1,094 | 3.2% |
| Indonesia | 17,555 | 3.7% | 3,843 | 21.9% |
| Other | 34,489 | 7.3% | 5,179 | 15.0% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Japan | 44.0% | 53.6% | 9.5 | 13.1% |
| America | 15.3% | 3.7% | -11.7 | 2.6% |
| Australia | 9.4% | 4.2% | -5.2 | 4.8% |
| China | 12.9% | 18.6% | 5.7 | 15.5% |
| Korea | 7.3% | 2.2% | -5.1 | 3.2% |
| Indonesia | 3.7% | 7.6% | 3.9 | 21.9% |
| Other | 7.3% | 10.2% | 2.9 | 15.0% |

Segment → industry: Other → Housing Equipment & Building Materials / Indonesia → Housing Equipment & Building Materials / Korea → Housing Equipment & Building Materials / China → Housing Equipment & Building Materials / Australia → Housing Equipment & Building Materials / America → Housing Equipment & Building Materials / Japan → Housing Equipment & Building Materials

## 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 | 49,298 | 10.5% | S100YJCU |
| Capital expenditure | 15,291 | 3.3% | S100YJCU |
| Free cash flow | 34,007 | 7.2% | 算出 |
| Investing cash flow | -30,905 | -6.6% | S100YJCU |
| Financing cash flow | -21,931 | -4.7% | S100YJCU |
| Dividends paid | 12,554 | 2.7% | S100YJCU |
| Share buyback | 10,010 | 2.1% | S100YJCU |
| Change in cash | -1,793 | -0.4% | S100YJCU |
| Cash and equivalents | 134,506 | 28.6% | S100YJCU |

## 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 | 147,972 | 120,213 | 123,829 | 136,300 | 134,506 | S100TQUE, S100W18P, S100YJCU |
| Total assets | 512,867 | 547,114 | 577,088 | 606,586 | 649,569 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Net assets | 378,856 | 407,199 | 437,438 | 461,718 | 494,124 | S100TQUE, S100W18P, S100YJCU |
| Share capital | 6,484 | 6,484 | 6,484 | 6,484 | 6,484 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Property, plant and equipment | 100,598 | 118,166 | 147,425 | 152,293 | 157,817 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Intangible assets excluding goodwill | 3,792 | 3,743 | 3,642 | 7,791 | 17,946 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Goodwill | — | — | — | 2,859 | 6,891 | S100YJCU |
| Investment securities | 44,620 | 48,205 | 40,834 | 35,919 | 33,829 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Current assets | 333,956 | 341,520 | 341,437 | 362,482 | 374,185 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Current liabilities | 108,803 | 112,868 | 106,890 | 108,605 | 110,615 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Trade payables | 26,433 | 26,205 | 24,427 | 32,897 | 29,439 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Short-term borrowings | — | — | — | — | 12,801 | S100YJCU |
| Total liabilities | 134,010 | 139,914 | 139,650 | 144,867 | 155,445 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Non-controlling interests | 35,736 | 43,048 | 49,663 | 55,872 | 56,870 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Equity attributable to owners of parent | 328,419 | 337,569 | 346,470 | 356,994 | 371,269 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Retained earnings | 315,593 | 334,946 | 342,493 | 352,932 | 367,029 | S100R0HV, S100TQUE, S100W18P, S100YJCU |
| Treasury stock | -2,330 | -12,290 | -10,936 | -10,851 | -10,568 | S100R0HV, S100TQUE, S100W18P, S100YJCU |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 21% | S100YJCU |
| Property, plant and equipment | 24% | S100YJCU |
| Intangibles and goodwill | 4% | S100YJCU |
| Investment securities | 5% | S100YJCU |
| Other assets | 46% | S100YJCU |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 5% | S100YJCU |
| Other liabilities | 19% | S100YJCU |
| Equity | 76% | S100YJCU |

### 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 | 512,867 | 547,114 | 577,088 | 606,586 | 649,569 |
| Equity | 378,856 | 407,199 | 437,438 | 461,718 | 494,124 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 147,972 | 120,213 | 123,829 | 136,300 | 134,506 |

## 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) | 33.6% | S100YJCU |
| Fixed assets ÷ total assets | 24.3% | S100YJCU |
| Goodwill ÷ parent equity | 1.9% | S100YJCU |

### 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) | 20.7% |
| Cash ÷ revenue | 28.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 97.6% |
| Cash vs. profit gap | 13,138 JPY mn (of net income 36.3%) |
| Shareholder returns / net income | 62.4% |
| Shareholder returns / FCF | 66.4% |
| Shareholder payments — dividends / net income | 34.7% |
| Shareholder payments — dividends / FCF | 36.9% |
| CapEx intensity (capex ÷ revenue) | 3.3% |
| Investing CF relative to operating CF | 62.7% |

## 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 | 6.5% | 0.71× | 4.6% | 1.56× | 7.2% | S100R0HV |
| 2023 | 6.1% | 0.80× | 4.9% | 1.59× | 7.8% | S100TQUE |
| 2024 | 6.2% | 0.77× | 4.7% | 1.64× | 7.8% | S100W18P |
| 2025 | 6.5% | 0.78× | 5.0% | 1.68× | 8.4% | S100YJCU |
| 2026 | 7.7% | 0.75× | 5.8% | 1.72× | 9.9% | S100YJCU |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 内藤株式会社 | Major shareholder | 13.5% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 12.0% | 2026-03-31 |
| 林 謙治 | Major shareholder | 5.3% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 5.0% | 2026-03-31 |
| 公益財団法人リンナイ奨学財団 | Major shareholder | 3.0% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.5% | 2026-03-31 |
| 全国共済農業協同組合連合会 （常任代理人 日本マスタートラスト信託銀行株式会社） | Major shareholder | 2.4% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505103 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.8% | 2026-03-31 |
| リンナイ社員持株会 | Major shareholder | 1.8% | 2026-03-31 |
| 内藤 万琴 | Major shareholder | 1.2% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥470.4B, up 2.2% from ¥460.3B the year before.
- Operating income reached ¥50.5B (up 9.8%) and net income ¥36.2B (up 21.8%), growing faster than sales.
- Cash generation weakened, though: operating cash flow fell 14.3% to ¥49.3B, and free cash flow fell 15.2% to ¥34B.

### Drivers

- In Japan, hybrid water heaters, gas clothes dryers, and fine-bubble bath products sold well.
- Higher sales and cost-cutting lifted operating income despite rising material costs and tariffs.
- In Australia, heat pump water heaters sold well and recently acquired companies added to profit.
- In China, weak consumer spending cut unit sales.
- Foreign exchange gains also boosted net income. Operating cash flow fell partly because trade payables and warranty reserves went down.

### Risks

- Higher prices for steel, copper, brass, and aluminum could raise production costs and cut profit.
- Because overseas sales are large, a stronger yen, especially against the dollar and yuan, would weigh on results.
- The push toward decarbonization could lead to rules that restrict making or selling products that burn fossil fuels such as gas.

Cited: Annual securities report (FY ending Mar 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report (FY ending Mar 2026) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第76期(2025/04/01－2026/03/31) | S100YJCU | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YJCU,, |
| 有価証券報告書－第75期(2024/04/01－2025/03/31) | S100W18P | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W18P,, |
| 有価証券報告書－第74期(2023/04/01－2024/03/31) | S100TQUE | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TQUE,, |
| 有価証券報告書－第73期(2022/04/01－2023/03/31) | S100R0HV | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R0HV,, |
| 有価証券報告書－第72期(令和3年4月1日－令和4年3月31日) | S100OBSR | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OBSR,, |
| 有価証券報告書－第71期(令和2年4月1日－令和3年3月31日) | S100LMIM | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LMIM,, |

## 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).