1、ab4 August 2025Global ResearchJapan Machinery Sector Overview of first half of April-June 2025 resultsApr-Jun results,first half:mixed;at many companies,share prices fell after resultsNine of the 25 stocks we cover had announced April-June 2025 results by 1 August(Figure 1).Relative to our forecasts

2、,Keyence,Makita,and JTEKT ran ahead,while Komatsu,Hitachi Construction Machinery(HCM),NSK,Makino Milling,and DMG Mori fell behind.Given that market expectations had been lofty,share prices at many companies declined following results.In our view,one major change is the bottoming out of European dema

3、nd in the FA,machine tool,construction machinery,and power tool areas.Demand remains strong for FA,machine tools;results were favourable at FanucExcept for some customers adopting a wait-and-see stance,such as the North American autos area,demand for FA and machine tools remained strong in North Ame

4、rica and China,as we expected.In terms of fresh news,we could confirm that demand seems to be bottoming in Europe and that tariff-related price pass through and surcharges are progressing.The US employment data and manufacturing ISM report released on 1 August were weak,so the sustainability of buoy

5、ant capex will be a focus from here.Looking at individual company results,Fanuc posted strong Q1 results alongside an ongoing solid demand environment in China and the US.Management announced new FY3/26 guidance calling for OP of 159.5bn.This is in line with the IFIS consensus,but we think it could

6、be conservative,as usual.If capex continues to expand in Europe,the US,and China this could be a catalyst for the share price.Keyence posted profit growth for Q1 on strong sales in the Americas and Asia.Given there was no change in shareholder returns and Q1 results missed the IFIS consensus estimat