Introduction
Long-term Target: Strong Company
Makita aims to contribute to the creation of a sustainable society and consolidate a strong global position as a supplier of comprehensive tools for comfortable homes and living environments, including cordless power tools, battery-operated outdoor power equipment, and pneumatic tools.
Management Policy / Quality Policy
- Makita strives to exist in harmony with society: a company that observes laws and regulations, acts ethically, and never allows anti-social organizations market-driven intervention.
- Makita values its customers.
- Makita is managed in a consistent and proactive manner: a company that strives to exist in perpetuity by adhering to a sound profit structure.
- Valuing a stalwart corporate culture, Makita encourages each individual to perform to his or her highest level: a happy company.
Makita's Value Creation
Makita in Numbers
Makita's global network and products contribute to solving social issues. The company aims to be a global supplier of comprehensive tools for comfortable homes and living environments.
Share of Revenue by Region (FYE 2025):
- Europe: 49.4%
- Japan: 16.9%
- North America: 11.1%
- Oceania: 7.4%
- Central and South America: 6.7%
- Asia (excluding Japan): 6.0%
- The Middle East and Africa: 2.5%
Financial Highlights (FYE 2025): Sales revenue: ¥753.1 billion, Operating profit ratio: 14.2%, Total return ratio: 37.3%, ROE: 8.8%
Key Metrics (FYE 2025): Number of patents and utility model registrations held: 4,705; Plants: 8 countries; Lithium-ion battery series: 789 models; New product developments: Approx. 70 models; Sales and service bases: 129 (Japan), ~50 (Overseas countries); Water usage: 105,124 m³; Percentage of female employees: 33%; Percentage of Outside Directors: 35.7%
Value Creation History
Makita began in 1915 as a repair and sales company. It evolved into a power tool manufacturer in 1959 and expanded globally, establishing its first overseas subsidiary in the U.S. in 1970. In 2005, Makita launched professional-use cordless power tools with lithium-ion batteries, aiming to become "a Supplier of a Comprehensive Range of Cordless Products." The company continues to adapt to market changes and social issues, focusing on sustainable growth.
- 1915: Founded as Makita Electric Works (proprietorship).
- 1958: Released Japan's first portable electric planer.
- 1959: Became a power tool manufacturer; first export to Australia.
- 1970: Established Makita U.S.A., Inc.
- 2005: Launched first professional-use cordless tools with lithium-ion batteries.
- 2019: Launched the Li-ion 40Vmax series.
- 2022: Discontinued engine-powered products.
Value Creation Process
Makita addresses social issues like climate change and labor shortages through its business model, leveraging various capitals to create value.
- Input: Financial capital (¥926.0 billion equity), Human capital (17,641 employees), Social capital (129 sales/service bases), Manufacturing capital (8 plants), Intellectual capital (4,705 patents), Natural capital (191,733 MWh energy usage).
- Business Model: Development, Production, Sales and services.
- Output: Power tools, Outdoor power equipment (OPE), Cleaning supplies, Disaster prevention and rescue products, Parts, repairs, and accessories. (Sales composition FYE 2025: Power tools 53.9%, OPE/household/other 24.0%, Parts/repairs/accessories 22.1%).
- Outcomes: Reduced environmental impact, improved work efficiency, support for disaster recovery, peace of mind for customers, enhanced corporate value for shareholders, supportive workplaces for employees, and fair transactions with business partners.
President's Message
TOP MESSAGE
Makita, a global company with over 110 years of history, is evolving into "a Supplier of a Comprehensive Range of Cordless Products." Despite market challenges like declining housing starts and supply chain issues, Makita views change as an opportunity, pursuing market creation through technological innovation. The high-power 40Vmax lithium-ion battery (XGT) series is key to this strategy, expanding into new fields like resource development, agriculture, and disaster preparedness. Makita emphasizes product reliability and durability for professional users and offers a diverse battery voltage range (10.8V, 18V, 40Vmax) to meet varied needs.
Service System and Brand Power
Makita's growth is supported by its comprehensive service system, ensuring products are always ready for use. A global network of sales and service bases maintains stable inventory and offers after-sales service with a "three-day repair policy." This rapid service builds trust and brand strength. Cordless OPE is a significant growth area, with strong branding activities in Europe and the U.S. The company aims to transform cordless OPE into a profitable business model by creating new markets and offering superior performance.
Evolving Production and Development Systems
For FYE 2025, revenue reached ¥753.1 billion and operating profit ¥107.0 billion. Efficiency improvements in production, including refining plans and optimizing logistics, have enhanced the cost structure. Makita is strengthening its development systems by investing in testing equipment, AI, and advanced simulation technologies to accelerate the product development cycle and ensure quality and speed. Production capacity is being enhanced in each region to respond flexibly to environmental changes and market needs.
Responsibility as a Sustainable Company
Makita aims to grow in harmony with society, focusing on environmental responsibility, compliance, and ethical conduct. Initiatives include promoting product electrification, reusing materials, reducing CO2 emissions, and using recycled/paper packaging. The company fosters a corporate culture where individuals take on challenges and act responsibly, promoting diversity and inclusion. Corporate governance is evolving into a strategic management monitoring system, enhancing transparency and soundness through the Audit & Supervisory Committee system and outside directors.
Management Policy that Views Change as an Opportunity
In an era of unpredictability, Makita's management policy views change as an opportunity, driving market creation and technological innovation. The company focuses on increasing market share even if revenue temporarily declines, viewing challenges as opportunities for medium- to long-term investment. This approach is fundamental to achieving the long-term goal of becoming a "Strong Company." Makita supports the evolution of workplaces through electrification and automation, aiming for sustainable growth in harmony with the environment, society, and economy.
Message from the Director of the Administration Department
Operating profit reached a record high of ¥107 billion in FYE 2025. Makita is implementing a global inventory visualization system and human resource strategies to become a "Strong Company" and maximize shareholder value.
Performance Evaluation for FYE 2025: Consolidated revenue increased 1.6% to ¥753.1 billion. Operating profit rose 61.8% to ¥107 billion (14.2% operating profit ratio), a record high. ROE improved to 8.8%. Net cash improved to ¥243.1 billion.
Earnings Forecast for FYE 2026: Consolidated revenue expected to decrease 7.1% to ¥700 billion, operating profit to decrease 30.9% to ¥74 billion, due to U.S. tariffs and increased labor costs. Opportunities exist in the shift to cordless products and expansion into new markets.
Basic Finance and Capital Policy: Aims to stabilize ROE at 8-10% and reduce the cost of equity. Focus on balance sheet management, investment efficiency, and securing necessary cash for flexible decisions.
Approach to Cash Allocation: Growth investments in power tools. Capital expenditures around ¥30 billion annually for the next 2-3 years. Retained earnings managed for sustainable ROE. Shareholder returns target a total return ratio of 35% or more.
Implement Global Inventory Visualization: A system for global, per-model inventory visibility is fully operational, enabling efficient inventory management, real-time detection of slow-moving products, and improved product lineup structure.
Human Resource Development and Diversity: Focus on training, promoting women's advancement, and encouraging childcare leave. Aims for 90% of eligible male employees to use childcare leave by FYE 2030.
Investor Engagement: Ongoing dialogue with shareholders and investors, quarterly financial results briefings, and active disclosure in English.
Special Feature: Evolving into "a Supplier of a Comprehensive Range of Cordless Products"
Makita is evolving from a power tool manufacturer to "a Supplier of a Comprehensive Range of Cordless Products," leveraging its battery, charging, and motor technologies. This expansion includes cordless outdoor power equipment (OPE), cleaning products, and outdoor products.
Accommodating Every Worksite:
- Power Tools: Used in construction, factories, and various other locations, with advanced technology for drilling, fastening, cutting, and polishing.
- Outdoor Power Equipment (OPE): Focus on cordless products for zero emissions, quiet operation, and ease of handling, contributing to decarbonization.
- Cleaning Products: High suction power, durability, and mobility for building maintenance.
- Disaster Preparedness and Rescue Products: Highly durable, high-powered cordless products for post-disaster reconstruction and daily life support (e.g., Cordless Cooler & Warmer Box, Microwave oven).
- Parts, Repairs, and Accessories: Long-life accessories optimized for tasks, supported by a global network for rapid service.
Makita's Strengths: High-efficiency products (40Vmax series), prompt service, industry-leading battery/motor tech, global production system.
Value of Cordless Products:
- Reduces environmental impact and facilitates decarbonization (zero exhaust, low noise).
- Improves safety, comfort, and convenience.
- Supports early recovery from disasters (usable indoors/underground).
- Provides peace of mind during times of disaster (batteries as backup power sources).
Opening Doors with the 40Vmax Series
The 40Vmax series is designed for professionals, offering high power and extended battery life through its original Smart System. It features outstanding resistance to falls and impacts, and IP56-compliant dust and water protection.
Product Lineup: 10.8V (CXT), 18V (LXT), and 40Vmax (XGT) battery voltages cater to every application.
Business Opportunities and Future Growth Strategy
Makita leverages opportunities from labor shortages and the shift to cordless products for decarbonization.
- Provision of solutions through the 40Vmax series: Replaces engine-powered, pneumatic, and corded tools for heavy-duty work, eliminating inconveniences while maintaining work capability.
- Shift to cordless products for peripheral work: The extensive product lineup allows a single battery to power multiple tools, making all peripheral tasks cordless.
Makita Products in the OPE Market
Cordless OPE, particularly the 40Vmax series, shows significant growth potential. Its power, durability, low noise, and zero emissions drive replacement sales for engine-powered equipment. Cordless OPE sales have doubled in the past five years, becoming a business pillar alongside power tools.
User Testimonials highlight: Worry-free operation in noise-sensitive areas, hassle-free work with simple operation and maintenance, and ease of handling for all employees.
Makita's Sustainability Management
Progress of Sustainability Management
Basic Policy: Contribute to a sustainable society by solving environmental and social issues through its main business. Develop in harmony with society through corporate ethics, compliance, human rights respect, environmental protection, and responsible procurement. Build trust with stakeholders through fair and transparent management.
Material Issues:
- Reducing environmental impact: Contribute to decarbonization and a resource-circulating society.
- Contributing to affluent communities and daily lives: Improve work efficiency, support disaster recovery, and offer peace of mind.
- Strengthening the management base: Respect human rights, provide employee training, ensure compliance, and strengthen corporate governance.
Environment
Makita promotes environmental management aiming for both protection and sustainable business growth. Key initiatives include contributing to decarbonization and a resource-circulating society.
Environmental Vision: "Go Green" symbolizes commitment to creating a sustainable, recycling-oriented society.
Policies to Address the Circular Economy: Downsizing, lightening, extending product life, reducing single-use plastics, promoting sustainable procurement, recycling used batteries, and reducing waste.
Environmental Management System: ISO 14001 certified at Head Office, Okazaki Plant, Nisshin Office, and all overseas production bases.
Contributions to Decarbonization: Developing cordless products, utilizing renewable energy (photovoltaic panels), energy conservation, and switching to environmentally friendly materials for products and packaging.
Contributions to a Resource-Circulating Society: Battery recycling programs in Japan and Germany. Promoting the elimination of plastic in packaging and using recycled resin materials.
Initiatives in Line with the TCFD Recommendations
Makita views climate change as a high-priority management challenge and endorsed TCFD recommendations in 2021. The Sustainability Committee, chaired by the President, deliberates on climate change policies and measures.
Governance: Sustainability Committee reports to the Board of Directors, which monitors climate-related risks and opportunities.
Strategy: Scenario analyses (1.5°C to 2°C vs. 3°C to 4°C warming) identify risks (e.g., rising carbon prices, battery regulations, physical damage from disasters) and opportunities (e.g., market expansion for cordless products, increased demand for energy-saving solutions).
Future Policies and Initiatives: Focus on cordless products for climate change mitigation and adaptation. Transition plan aims for virtually zero GHG emissions (Scopes 1 & 2) by FYE 2041 and Scope 3 by FYE 2051. Mid-term target: 50% reduction by FYE 2031.
Risk Management: Annual Disclosure Committee meetings identify and scrutinize risks. A global security task force is in place to combat cyberattacks.
Society (Disclosure of Human Capital, etc.)
Makita fosters an environment where diverse human resources can thrive globally. Key initiatives focus on human resource development, promoting women's advancement, and encouraging work-life balance.
Human Resource Strategies: Efficient training for new hires, promoting women's advancement, encouraging childcare leave. Target: 20% of employees transferred overseas have worked at Makita for five years or fewer by FYE 2030. Target: Increase female managers to at least 3% by FYE 2030. Target: 90% of eligible male employees use childcare leave by FYE 2030.
Human Resource Training Systems: Stratified training in Japan, on-site training, correspondence courses, and management training. Focus on leadership development and problem-solving at the China plant.
Diversity & Inclusion Promotion: Strives for fairness in hiring, assignments, and promotions, eliminating distinctions based on gender or other attributes. Respect for human rights is a core principle.
Securing the Safety and Health of Employees: Safety and Health Committee activities, hazard prediction, near-miss activities. Mental and physical health support, including stress checks and health consultations.
Respect for Human Rights: Stipulated in the Code of Ethics and Human Rights Policy. Education provided to all employees. CSR procurement emphasizes human rights responsibilities in supply chain selection.
Corporate Governance
Makita strengthens corporate governance to increase corporate value and earn stakeholder trust. Key elements include a Board of Directors, Nomination and Compensation Committee, and Audit & Supervisory Committee.
Basic Philosophy: Achieve unending development together with stakeholders through strengthened transparency, checking functions, and proactive information disclosure.
Steps Taken: Introduction of Outside Directors (2005), Corporate Officer system (2009), restricted share compensation (2019), transition to Company with Audit & Supervisory Committee (2020), increased Outside Director ratio.
Structure: Board of Directors oversees management. Audit & Supervisory Committee audits Directors' duties. Nomination and Compensation Committee advises on director nominations and compensation.
Director Selection Policy: Balance of knowledge, experience, and ability; diversity; ratio of Outside Directors > 1/3.
Board Effectiveness: Annual self-evaluation indicates appropriate functioning, with feedback for future improvements (e.g., diversity, long-term strategy discussions).
Director Compensation: Consists of monthly compensation, bonuses, and restricted share compensation, linked to performance and share value.
Compliance: Upholds "striving to exist in harmony with society." Regular training and an Ethical Compliance Survey are conducted. A Corporate Ethics Helpline (Internal Reporting) is available for reporting violations.
Risk Management: Disclosure Committee identifies and investigates risks. Fire & Disaster Management Committee formulates disaster prevention regulations and BCP. Cyberdefense structure is being built Group-wide.
Risks & Opportunities: Covers changes in social/market environment, natural disasters, global competition, technology, procurement, customer relationships, and environment (including climate change).
Corporate Data
10-Year Summary
| (Million yen) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales / Revenue | 423,623 | 414,999 | 477,298 | 490,578 | 492,617 | 608,331 | 739,260 | 764,702 | 741,391 | 753,130 |
| Operating income / Operating profit | 64,676 | 62,564 | 80,231 | 78,305 | 64,046 | 88,464 | 91,728 | 28,246 | 66,169 | 107,038 |
| Profit attributable to owners of the parent | 41,615 | 44,782 | 54,943 | 55,750 | 47,731 | 62,018 | 64,770 | 11,705 | 43,691 | 75,000 (approx.) |
| Total assets | 558,024 | 597,249 | 654,841 | 680,250 | 674,564 | 812,878 | 1,007,497 | 1,099,351 | 1,055,808 | 1,073,000 (approx.) |
| Equity attributable to owners of the parent | 479,752 | 502,170 | 554,046 | 572,748 | 571,275 | 657,855 | 746,344 | 769,247 | 868,156 | 926,000 (approx.) |
| ROE (%) | 8.6 | 9.1 | 10.4 | 10.4 | 8.3 | 9.2 | 8.3 | 1.5 | 5.3 | 8.8 |
| Employees | 14,784 | 15,344 | 16,137 | 16,137 | 17,090 | 18,624 | 20,233 | 18,804 | 17,669 | 17,641 |
Note: Figures for FYE 2025 are preliminary or estimates where not explicitly stated.
Stock Information (As of March 31, 2025)
- Securities Code: 6586
- Stock Market Listings: Tokyo Stock Exchange (Prime Market), Nagoya Stock Exchange (Premier Market)
- Total Number of Shares Outstanding: 271,467,057 (including treasury shares)
- Number of Shareholders: 16,861
- Major Shareholders: Includes The Master Trust Bank of Japan, Ltd., Custody Bank of Japan, Ltd., Maruwa, Ltd., MUFG Bank, Ltd., and others.
- Share Price Trend: Chart shows share price and trading volume from FYE 2015 to FYE 2025.
