MachineryNarrow moat

ITOCHU (8001) — moat facet

Machinery became ITOCHU's largest division and is where most of this year's investment is going.

Machinery earned ¥131.6 billion in the year to March 2024, ¥136.5 billion in 2025 and ¥155.6 billion in 202612. Its revenue was ¥1,500.6 billion3, a margin of about 10.4%4, and its assets ¥2,603.5 billion5, earning about 6.0%6. Its equity earnings of ¥104.8 billion were the largest of any division7.

Machinery net profit (¥ bn, years to March)131.62024136.52025155.62026220.02027 planITOCHU results, FIR 2025 and first-quarter summary
A steady rise and a large planned step.

The division has two halves: plant projects, marine and aerospace, which earned ¥63.9 billion, and automobiles, construction and industrial machinery, which earned ¥91.7 billion8. Its largest contributors are Tokyo Century, 29.9% owned, at ¥39.6 billion; the North American power business at ¥26.5 billion; overseas automobiles at ¥20.4 billion; and YANASE, the imported-car dealer, at ¥12.2 billion9.

The division is where ITOCHU is investing most: the Hitachi Construction Machinery stake, raised to 33.4% for ¥134.1 billion, and the planned Aviation Capital Group stake10. Its plan for the current year was raised to ¥220.0 billion11, and the first quarter earned ¥54.8 billion against ¥32.0 billion12.

The measure is the ¥220.0 billion plan. Reaching it would make Machinery almost a quarter of ITOCHU's profit.

Moat trajectory: Widening

Profit rose for two years and the plan was raised to ¥220.0 billion.

The number that tests this moat
Reported
Machinery division plan
¥220.0bn for the year to March 2027, raised from ¥180.0bn

The largest division's target after the Hitachi and aviation investments.

Source: ITOCHU first-quarter summary, August 2026 ↗
References
  1. ReportedMachinery earned ¥131.6 billion in the year to March 2024, ¥136.5 billion in 2025 and ¥155.6 billion in 2026.
    ITOCHU Corporation, Financial Information Report 2025 - segment information for the years to March 2025 and 2024, and the DESCENTE tender offer. — FY to March 2025 · publ. 2025 · source ↗
  2. ReportedMachinery earned ¥131.6 billion in the year to March 2024, ¥136.5 billion in 2025 and ¥155.6 billion in 2026.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedIts revenue was ¥1,500.6 billion, a margin of about 10.4%, and its assets ¥2,603.5 billion, earning about 6.0%.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. Moat Explorer calcIts revenue was ¥1,500.6 billion, a margin of about 10.4%, and its assets ¥2,603.5 billion, earning about 6.0%.
    Moat Explorer calculation from ITOCHU's reported figures. Trailing twelve months to June 2026: net profit 900.3 - 283.9 + 293.8 = 910.1; revenue 14,823.1 - 3,558.9 + 3,875.9 = 15,140.1; EPS 128.00 - 40.10 + 42.02 = 129.92. Market value at 24 September 2026: 6,993,053,267 shares x ¥2,220.5 = ¥15.53 trillion. P/E at March year-end: market value over net profit, e.g. 13,802 / 900.3 = 15.3 (2026), 6,090 / 820.3 = 7.4 (2022), 3,046 / 500.5 = 6.1 (2019). Non-resource share of profit: 774.7 / (774.7 + 133.3) = 85%. Segment net profit over segment assets, year to March 2026: Machinery 155.6 / 2,603.5 = 6.0%; Metals & Minerals 143.5 / 1,793.4 = 8.0%; ICT & Financial 93.0 / 1,577.2 = 5.9%; Food 92.1 / 2,403.4 = 3.8%; Energy & Chemicals 69.3 / 1,819.4 = 3.8%; General Products & Realty 60.8 / 1,628.7 = 3.7%; The 8th 45.0 / 2,197.3 = 2.0%; Textile 43.3 / 751.9 = 5.8%. Segment net margin on revenue: Food 92.1 / 5,134.2 = 1.8%; Energy & Chemicals 69.3 / 3,069.6 = 2.3%; Machinery 155.6 / 1,500.6 = 10.4%; Metals & Minerals 143.5 / 1,231.5 = 11.7%. Berkshire's market value over cost: 8,886 / 4,165 = 2.13 times; dividend on cost 181 / 4,165 = 4.3%. Self-tender: 82,735,750 x ¥1,813 = about ¥150.0 billion. Net profit growth since the year to March 2016: 900.3 / 240.4 = 3.7 times. Dividend growth: 42.0 / 10.0 = 4.2 times (split-adjusted). ROE spread over the company's cost of capital: 14.6 - 8 = 6.6 points. Equity growth: 6,590.0 / 5,755.1 = 1.15. Stake in DENTSU SOKEN at the tender price: ¥215.2 billion for 38%. ACG profit target over investment: ¥50 billion is the aerospace target, about ¥310 billion the ACG investment. Berkshire's stake at ¥2,220.5: 704,799,500 x 2,220.5 = about ¥1.565 trillion. ITOCHU over Marubeni net profit: 900.3 / 543.9 = 1.66. 8% hurdle on the CSN Mineração additional investment: 0.08 x 119.2 = 9.5. 8% hurdle on ¥215.2 billion: about ¥17.2 billion. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in ITOCHU's financial statements, results decks and market data; operands shown in the source line.
  5. ReportedIts revenue was ¥1,500.6 billion, a margin of about 10.4%, and its assets ¥2,603.5 billion, earning about 6.0%.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  6. Moat Explorer calcIts revenue was ¥1,500.6 billion, a margin of about 10.4%, and its assets ¥2,603.5 billion, earning about 6.0%.
    Moat Explorer calculation from ITOCHU's reported figures. Trailing twelve months to June 2026: net profit 900.3 - 283.9 + 293.8 = 910.1; revenue 14,823.1 - 3,558.9 + 3,875.9 = 15,140.1; EPS 128.00 - 40.10 + 42.02 = 129.92. Market value at 24 September 2026: 6,993,053,267 shares x ¥2,220.5 = ¥15.53 trillion. P/E at March year-end: market value over net profit, e.g. 13,802 / 900.3 = 15.3 (2026), 6,090 / 820.3 = 7.4 (2022), 3,046 / 500.5 = 6.1 (2019). Non-resource share of profit: 774.7 / (774.7 + 133.3) = 85%. Segment net profit over segment assets, year to March 2026: Machinery 155.6 / 2,603.5 = 6.0%; Metals & Minerals 143.5 / 1,793.4 = 8.0%; ICT & Financial 93.0 / 1,577.2 = 5.9%; Food 92.1 / 2,403.4 = 3.8%; Energy & Chemicals 69.3 / 1,819.4 = 3.8%; General Products & Realty 60.8 / 1,628.7 = 3.7%; The 8th 45.0 / 2,197.3 = 2.0%; Textile 43.3 / 751.9 = 5.8%. Segment net margin on revenue: Food 92.1 / 5,134.2 = 1.8%; Energy & Chemicals 69.3 / 3,069.6 = 2.3%; Machinery 155.6 / 1,500.6 = 10.4%; Metals & Minerals 143.5 / 1,231.5 = 11.7%. Berkshire's market value over cost: 8,886 / 4,165 = 2.13 times; dividend on cost 181 / 4,165 = 4.3%. Self-tender: 82,735,750 x ¥1,813 = about ¥150.0 billion. Net profit growth since the year to March 2016: 900.3 / 240.4 = 3.7 times. Dividend growth: 42.0 / 10.0 = 4.2 times (split-adjusted). ROE spread over the company's cost of capital: 14.6 - 8 = 6.6 points. Equity growth: 6,590.0 / 5,755.1 = 1.15. Stake in DENTSU SOKEN at the tender price: ¥215.2 billion for 38%. ACG profit target over investment: ¥50 billion is the aerospace target, about ¥310 billion the ACG investment. Berkshire's stake at ¥2,220.5: 704,799,500 x 2,220.5 = about ¥1.565 trillion. ITOCHU over Marubeni net profit: 900.3 / 543.9 = 1.66. 8% hurdle on the CSN Mineração additional investment: 0.08 x 119.2 = 9.5. 8% hurdle on ¥215.2 billion: about ¥17.2 billion. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in ITOCHU's financial statements, results decks and market data; operands shown in the source line.
  7. ReportedIts equity earnings of ¥104.8 billion were the largest of any division.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  8. ReportedThe division has two halves: plant projects, marine and aerospace, which earned ¥63.9 billion, and automobiles, construction and industrial machinery, which earned ¥91.7 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  9. ReportedIts largest contributors are Tokyo Century, 29.9% owned, at ¥39.6 billion; the North American power business at ¥26.5 billion; overseas automobiles at ¥20.4 billion; and YANASE, the imported-car dealer, at ¥12.2 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  10. ReportedThe division is where ITOCHU is investing most: the Hitachi Construction Machinery stake, raised to 33.4% for ¥134.1 billion, and the planned Aviation Capital Group stake.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  11. ReportedIts plan for the current year was raised to ¥220.0 billion, and the first quarter earned ¥54.8 billion against ¥32.0 billion.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  12. ReportedIts plan for the current year was raised to ¥220.0 billion, and the first quarter earned ¥54.8 billion against ¥32.0 billion.
    ITOCHU Corporation, Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenues, trading income, equity earnings, net profit, segment results, the balance sheet and the ¥300 billion buyback. — April-June 2026 · publ. 6 August 2026 · source ↗
Sources
Generated September 24, 2026