June machine tool orders (preliminary) and investment perspectives

Research evidence excerpt

June machine tool orders (preliminary) and investment perspectives

June machine tool orders (preliminary) and Global Markets Research

investment perspectives 10 July 2026

EQUITY: JAPAN MACHINERY

Research Analysts

Orders hit new record high Japan machinery

Kentaro Maekawa - NSC

kentaro.maekawa@nomura.com

We think y-y growth is in peak territory +81 3 6703 1208

Angela Yang - NSC

Preliminary June order receipts at record high wenching.yang@nomura.com

The Japan Machine Tool Builders' Association (JMTBA) published preliminary order data +81 3 6703 1819

for June on 9 July. Machine tool orders totaled ¥203.5bn (up 52.8% y-y, up 15% m-m),

above ¥200.0bn for the first time ever and above our forecast of ¥180.6bn. Orders of

¥58.0bn (up 45.5% y-y, up 28% m-m) in Japan and ¥145.5bn (up 56% y-y, up 10.5% m-

m) overseas were ahead of our respective forecasts of ¥47.0bn and ¥133.6bn. While we

think the m-m rise was due in large part to seasonal factors, orders have continued to

come in at a higher-than-expected level. In Apr–Jun, orders were up 45% y-y and up 17%

q-q at a quarterly record high of ¥569.5bn. For details by region and industry, we will have

to wait for confirmed data scheduled for release on 29 July.

We think y-y growth is in peak territory

We expect the upward phase of the machine tool order cycle to continue in absolute

terms, driven by growth in demand from the semiconductor, electronics, and data center

industries, including in Japan, as well as in the US and China. We expect the European

market to weaken compared to other markets, particularly for automotive applications, but

we expect demand for aircraft defense-related products to increase. However, given the

near-term y-y trend in quarterly orders, we think it is unclear whether growth will continue