Ebara Jitsugyo (6328): FY2025 Results Summary — Engineering Drives Record Sales and Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

EBARA JITSUGYO CO.,LTD. (Ebatens) reported net sales of 41,211 mn yen for FY2025, the year ended December 31, 2025, up 9.9% year on year, with operating profit of 6,121 mn yen (+44.0%) and profit of 4,384 mn yen (+38.8%). According to the company’s executive summary, net sales, operating profit and ordinary profit reached new highs for the third consecutive year, and profit reached a new high for the first time in four years. Orders received rose 9.5% to 43,598 mn yen and the orders backlog rose 7.1% to 36,136 mn yen. The Engineering business drove the results, and the operating profit plan of the medium-term management plan was achieved ahead of schedule as early as in the first year of the plan (operating profit of 6.1 bn yen was recorded as compared to the plan of 5.5 bn yen).

Consolidated Results (Full-Year Actual)

On the market environment, the materials note that demand for renewal and development of water infrastructure facilities due to their aging remains at a high level, that demand for disaster prevention and mitigation under the Fundamental Plan for National Resilience is on an increasing trend, that demand remains strong in the private sector due to renewal of domestic plants, and that demand related to semiconductors picked up. Gross profit rose 18.8% to 13,927 mn yen and its ratio to net sales improved to 33.8% from 31.3%. The company states that the increase in gross profit exceeded the increase in SG&A expenses, mainly personnel expenses.

Item (Unit: mn yen)	FY2025	FY2024	Change	Change (%)
Net Sales	41,211	37,503	+ 3,708	+ 9.9
Gross Profit	13,927	11,727	+ 2,200	+ 18.8
SG&A Expenses	7,806	7,475	+ 331	+ 4.4
Operating Profit	6,121	4,251	+ 1,870	+ 44.0
Ordinary Profit	6,316	4,443	+ 1,873	+ 42.2
Profit	4,384	3,157	+ 1,227	+ 38.8
Orders Received	43,598	39,833	+ 3,765	+ 9.5
Orders Backlog	36,136	33,750	+ 2,386	+ 7.1

Segment Results

Ebara Jitsugyo reports three segments: Manufacturing (the development, manufacture, and sales of environment-related products and facilities), Engineering (the design, construction, and maintenance of public water infrastructure facilities) and Trading (sales of pumps, blowers, air conditioners etc., mostly Ebara products, as an agent). Engineering was the growth driver, with orders received up 18.8%, net sales up 19.0% and gross profit up 32.6%, and its gross profit margin rising to 33.6% from 30.1% as the company focused on profitable orders. In Manufacturing, net sales increased 5.6% while orders received declined 2.9%, and the gross profit margin was 41.6% against 40.4%. In Trading, orders received edged up 1.1% while net sales declined 2.3%, with the gross profit margin rising to 29.1% from 27.5% on high profit margin orders received. Within Manufacturing, the company attributes the year-on-year order changes to a pickup in semiconductor-related demand for measuring instruments (2,060 mn yen against 1,289 mn yen), a decrease in reaction to large-scale orders for the renewal of deodorizing equipment in the equivalent period of the previous year (1,464 mn yen against 1,908 mn yen) and a decrease in orders for water treatment plants in the private sector (2,797 mn yen against 3,281 mn yen).

Segment	Metric (Unit: mn yen)	FY2025	FY2024	Change (%)
Manufacturing	Orders Received	7,517	7,743	– 2.9
Manufacturing	Net Sales	7,506	7,111	+ 5.6
Manufacturing	Gross Profit	3,119	2,871	+ 8.7
Engineering	Orders Received	24,358	20,500	+ 18.8
Engineering	Net Sales	22,450	18,872	+ 19.0
Engineering	Gross Profit	7,532	5,682	+ 32.6
Trading	Orders Received	11,721	11,589	+ 1.1
Trading	Net Sales	11,254	11,520	– 2.3
Trading	Gross Profit	3,274	3,173	+ 3.2

FY2026 Business Plan

For FY2026 the company plans net sales of 44,000 mn yen (+6.8%), operating profit of 6,300 mn yen (+2.9%) and profit of 4,500 mn yen (+2.6%). The materials state that market conditions remain strong in both the public and private sectors, that net sales are expected to increase on the back of the high-level orders backlog (up 2.3 bn yen from the previous period), and that the company plans to increase orders received and net sales especially in disaster prevention and mitigation, storage batteries, and fisheries, which are focus areas that will drive business growth. SG&A expenses are planned to increase in response to rising labor costs and higher R&D expenses stemming from active development investment. The executive summary adds that operating profit is expected to reach a new high for the fourth consecutive year.

Item (Unit: mn yen)	FY2026 Plan	FY2025 Results	Change	Change (%)
Net Sales	44,000	41,211	+ 2,789	+ 6.8
Gross Profit	14,200	13,927	+ 273	+ 2.0
SG&A Expenses	7,900	7,806	+ 94	+ 1.2
Operating Profit	6,300	6,121	+ 179	+ 2.9
Ordinary Profit	6,500	6,316	+ 184	+ 2.9
Profit	4,500	4,384	+ 116	+ 2.6
Orders Received	46,000	43,598	+ 2,402	+ 5.5
Orders Backlog	38,136	36,136	+ 2,000	+ 5.5

By segment, the FY2026 plan calls for Manufacturing orders received of 10,500 mn yen (+39.7%) and net sales of 8,100 mn yen (+7.9%), with the company expecting to receive orders for large-scale projects related to land-based aquaculture facilities and a pickup in semiconductor-industry demand for measuring instruments. Engineering orders received are planned at 23,000 mn yen (-5.6%), as orders decrease slightly due to the absence of large-scale projects, while Engineering net sales are planned to rise 5.1% to 23,600 mn yen on the high-level orders backlog. Trading plans orders received of 12,500 mn yen (+6.6%) and net sales of 12,300 mn yen (+9.3%), as capital investment at semiconductor plants and pharmaceutical plants remains strong and the lineup of products handled is enhanced.

Medium-Term Management Plan EJ2027

FY2025 was the first year of the medium-term management plan EJ2027 (2025-2027). Against the final-year FY2027 plan of net sales of 45,000 mn yen, gross profit of 14,000 mn yen, a gross profit margin of 31.1%, SG&A expenses of 8,500 mn yen, operating profit of 5,500 mn yen, an operating profit margin of 12.2% and ROE of 15.0% or more, FY2025 results were net sales of 41,211 mn yen, gross profit of 13,927 mn yen, a gross profit margin of 33.8%, SG&A expenses of 7,806 mn yen, operating profit of 6,121 mn yen, an operating profit margin of 14.9% and ROE of 17.1%. The company describes operating profit as achieved ahead of schedule, gross profit as nearing achievement, and net sales as a focus for achieving the plan. By segment, the Engineering business achieved the gross profit plan for the final year ahead of schedule, the Trading business reached a level close to the final-year gross profit plan, and the Manufacturing business is described as needing to grow further, as there is a gap between the plan for the final year and the current situation. As its long-term vision the company aims to evolve into a Total Environmental Solutions Company, with financial targets of net sales of 60.0 bn yen and operating profit of 8.0 bn yen by FY2030.

Shareholder Returns

The basic policy shown for FY2025 is to maintain stable and continuous profit distribution with a target payout ratio of 35%. For FY2025 a dividend of 120 yen per share is planned, to be proposed to the Annual General Meeting of Shareholders to be held in March 2026, consisting of an interim dividend of 60.0 yen and a year-end dividend of 60.0 yen, for a payout ratio of 32.6%. Acquisition of treasury shares in FY2025 was 190 mn yen and the total payout ratio was 37.0%.

Item	FY2023 Result	FY2024 Result	FY2025 Plan
Annual dividends per share	85.0 yen	95.0 yen	120.0 yen
Interim	42.5 yen	47.5 yen	60.0 yen
Year-end	42.5 yen	47.5 yen	60.0 yen
Payout Ratio	32.3%	36.0%	32.6%

From FY2026 the basic dividend policy is changed so that the target payout ratio is raised from 35% to 40%. The FY2026 dividend forecast is 75 yen per share, up 15 yen per share. A stock split was implemented on January 1, 2026 (2 for 1), and the materials note that, converted to the amount as of December 31, 2025 before the stock split, the FY2026 dividend forecast would be 150 yen per share, an increase of 30 yen from the planned dividend of 120 yen per share for the previous fiscal year. In addition, the Board of Directors adopted a resolution on February 9, 2026 for share buybacks with a total acquisition cost of up to 1.0 bn yen and a total number of shares to be acquired of up to 600,000 shares, equal to 2.52% of the total number of shares issued excluding treasury shares, with an acquisition period from February 10, 2026 to August 31, 2026.

Topics

In October 2025 the company issued its first Integrated Report, which integrates financial and non-financial information, and it plans to issue this report every year. It also implemented a stock split in order to create an environment in which investors can invest more easily, improve the liquidity of its shares, and expand the investor base by lowering the amount per investment unit of its shares. The split ratio was 1 share to 2 shares, with a record date of December 31, 2025 and an effective date of January 1, 2026; the total number of issued shares before the split was 12,930,000 shares, the number of shares increased by the split was 12,930,000 shares, and the total number of issued shares after the split was 25,860,000 shares.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.