EBARA (6361): FY2025 Results Summary — Record Orders, Revenue and Profit; FY26 Targets Over ¥1 Trillion

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

Note: EBARA’s fiscal year ends on December 31. The company labels the fiscal year ended December 31, 2025 as “FY25” and the fiscal year ending December 31, 2026 as “FY26”; the text and tables below keep the company’s own labels. For FY25, EBARA CORPORATION reported IFRS-based orders of ¥949.6 billion (+10.4% year on year), revenue of ¥958.2 billion (+10.6%), operating profit of ¥113.8 billion (+16.2%) and profit attributable to owners of parent of ¥76.6 billion (+7.3%), with orders, revenue, operating profit and profit attributable to owners of parent all reaching record highs. Revenue rose in all segments, and the annual dividend per share was raised from the previous forecast of ¥56 to ¥59. For FY26, the company plans orders of ¥1,070.0 billion and revenue of ¥1,020.0 billion, aiming to exceed ¥1 trillion in both for the first time, with operating profit of ¥125.0 billion and an annual dividend of ¥66.

Consolidated Results (Full-Year Actual)

Orders for FY25 1-4Q were ¥949.6 billion, up ¥89.1 billion (+10.4%) from ¥860.5 billion in FY24, and ¥5.6 billion (+0.6%) above the plan of ¥944.0 billion announced on November 13, 2025. Revenue increased ¥91.6 billion (+10.6%) to ¥958.2 billion, ¥31.2 billion (+3.4%) above the ¥927.0 billion plan. Operating profit rose ¥15.8 billion (+16.2%) to ¥113.8 billion, lifting the OP ratio by 0.6 points to 11.9%; this was ¥3.8 billion (+3.5%) above the ¥110.0 billion plan. Profit attributable to owners of parent increased ¥5.2 billion (+7.3%) to ¥76.6 billion, and basic earnings per share rose ¥11.69 (+7.6%) to ¥166.31 (figures reflect the 5-for-1 stock split executed July 1, 2024). ROIC was 11.9% (-0.3 points) and ROE was 15.6% (-0.6 points). The company stated that operating profit increased overall due to contributions from Precision Machinery, Environmental Solutions and Infrastructure, and the absence of the goodwill impairment loss recorded last year by Building Service & Industrial; revenue growth outpaced increases in fixed costs. In the breakdown of changes in operating profit (from ¥97.9 billion to ¥113.7 billion), revenue contributed +¥42.6 billion, profitability -¥4.4 billion, fixed cost -¥26.0 billion, foreign exchange -¥0.6 billion and others +¥4.2 billion.

Item (billions of yen)	FY24 1-4Q Results	FY25 1-4Q Results	YoY Change	YoY Change %	Plan (Nov/13/25)	Deviation
Orders	860.5	949.6	+89.1	+10.4%	944.0	+5.6 (+0.6%)
Revenue	866.6	958.2	+91.6	+10.6%	927.0	+31.2 (+3.4%)
Operating Profit	97.9	113.8	+15.8	+16.2%	110.0	+3.8 (+3.5%)
OP Ratio	11.3%	11.9%	+0.6pts	–	11.9%	–
Profit Attributable to Owners of Parent	71.4	76.6	+5.2	+7.3%	74.0	+2.6 (+3.6%)
Basic Earnings per Share (JPY)	154.62	166.31	+11.69	+7.6%	160.25	+6.06 (+3.8%)
ROIC	12.2%	11.9%	-0.3pts	–	12.4%	-0.5pts
ROE	16.2%	15.6%	-0.6pts	–	15.4%	+0.2pts

By region, revenue in Japan was ¥320.3 billion (+10.2%) and overseas revenue was ¥637.9 billion (+10.8%); overseas accounted for 67% of revenue. Among overseas regions, Taiwan, South Korea and other Asia grew +49.9% to ¥193.5 billion, while China declined -4.8% to ¥181.1 billion and North America declined -5.7% to ¥116.6 billion. Exchange rates used were ¥149.63 vs. USD (FY24: ¥151.41), ¥168.94 vs. EUR (¥163.80) and ¥20.83 vs. CNY (¥21.04).

Segment Results

Precision Machinery posted orders of ¥303.4 billion (+16.7%), revenue of ¥342.2 billion (+23.0%) and operating profit of ¥57.7 billion (+15.2%), with the OP ratio declining 1.1 points to 16.9%. Both products and S&S increased due to the recovery in demand for CMP and Components, while profitability declined due to project mix and a lower S&S ratio (FY25 S&S ratio 28% vs. 31% in FY24), and labor and R&D costs were higher. Energy recorded orders of ¥194.7 billion (-12.6%) on fewer petrochemical projects, revenue of ¥217.8 billion (+3.5%) and operating profit of ¥25.9 billion (-7.4%), reflecting higher labor costs and the absence of the one-time gain from land sales recorded in the previous year. Building Service & Industrial reported orders of ¥249.2 billion (+2.0%), revenue of ¥241.9 billion (+1.6%) and operating profit of ¥15.2 billion (+47.5%); higher S&S revenue in Japan offset the decline in China, and the absence of the goodwill impairment from Turkish subsidiary Vansan recorded in FY24 contributed, partly offset by a one-time provision for doubtful accounts due to a U.S. customer bankruptcy in FY25 2Q. Infrastructure posted orders of ¥62.9 billion (+4.0%), revenue of ¥57.1 billion (+11.8%) and operating profit of ¥4.6 billion (+26.6%), as backlogged public sector orders and overseas orders were steadily fulfilled. Environmental Solutions secured four large-scale projects, lifting orders to ¥135.3 billion (+89.1%), with revenue of ¥97.8 billion (+11.9%) and operating profit of ¥13.0 billion (+54.0%), helped by an O&M mix change and the reversal of contingencies on completed EPC projects.

Segment (billions of yen)	Metric	FY24 1-4Q	FY25 1-4Q	YoY Change	YoY Change %
Precision Machinery	Orders	260.0	303.4	+43.3	+16.7%
Precision Machinery	Revenue	278.3	342.2	+63.8	+23.0%
Precision Machinery	Operating Profit	50.1	57.7	+7.6	+15.2%
Precision Machinery	OP Ratio	18.0%	16.9%	-1.1pts	–
Energy	Orders	222.7	194.7	-27.9	-12.6%
Energy	Revenue	210.4	217.8	+7.4	+3.5%
Energy	Operating Profit	28.0	25.9	-2.0	-7.4%
Energy	OP Ratio	13.3%	11.9%	-1.4pts	–
Building Service & Industrial	Orders	244.4	249.2	+4.8	+2.0%
Building Service & Industrial	Revenue	238.1	241.9	+3.7	+1.6%
Building Service & Industrial	Operating Profit	10.3	15.2	+4.9	+47.5%
Building Service & Industrial	OP Ratio	4.3%	6.3%	+2.0pts	–
Infrastructure	Orders	60.5	62.9	+2.4	+4.0%
Infrastructure	Revenue	51.1	57.1	+6.0	+11.8%
Infrastructure	Operating Profit	3.6	4.6	+0.9	+26.6%
Infrastructure	OP Ratio	7.2%	8.2%	+1.0pts	–
Environmental Solutions	Orders	71.5	135.3	+63.7	+89.1%
Environmental Solutions	Revenue	87.4	97.8	+10.4	+11.9%
Environmental Solutions	Operating Profit	8.4	13.0	+4.5	+54.0%
Environmental Solutions	OP Ratio	9.7%	13.3%	+3.6pts	–
Others, Adjustment	Orders	1.2	3.8	+2.5	–
Others, Adjustment	Revenue	1.1	1.2	+0.1	–
Others, Adjustment	Operating Profit	-2.6	-2.8	-0.1	–

FY26 Forecast

For FY26 (fiscal year ending December 31, 2026), the plan announced on February 13, 2026 calls for orders of ¥1,070.0 billion (+12.7%), revenue of ¥1,020.0 billion (+6.4%), operating profit of ¥125.0 billion (+9.8%), an OP ratio of 12.3% (+0.4 points) and profit attributable to owners of parent of ¥86.6 billion (+13.0%). The company aims to exceed ¥1 trillion in orders and revenue for the first time and to achieve record levels of operating profit and profit attributable to owners of parent for the 6th straight period. Basic earnings per share are planned at ¥189.67 (+14.0%), ROIC at 12.0% and ROE at 16.5%. Assumed exchange rates are ¥145.00 vs. USD, ¥175.00 vs. EUR and ¥20.00 vs. CNY. By segment, Precision Machinery is planned to drive growth with orders of ¥405.0 billion (+33.5%), revenue of ¥400.0 billion (+16.9%) and operating profit of ¥73.5 billion (+27.2%) on higher revenue driven by sustained demand, particularly in generative AI. Energy operating profit is planned to decline to ¥21.0 billion (-19.1%) on lower revenue and higher fixed costs, including the transfer of a portion of the hydrogen business (from FY26, a portion of the hydrogen business that was handled as a Corporate Project will be transferred to the Energy segment). Building Service & Industrial operating profit is planned at ¥20.0 billion (+31.1%), Infrastructure at ¥5.5 billion (+17.5%) and Environmental Solutions at ¥8.5 billion (-34.6%), the latter reflecting lower revenue and higher fixed costs including increased depreciation for the chemical-recycling pilot plant and higher R&D expenses. In the company’s market outlook for FY26, global wafer fab equipment is expected to grow more than 10%, global LNG in the 6%-range and ethylene in the 3%-range.

Item (billions of yen)	FY25 Results	FY26 Plan (Feb/13/26)	Change	Change %
Orders	949.6	1,070.0	+120.3	+12.7%
Revenue	958.2	1,020.0	+61.7	+6.4%
Operating Profit	113.8	125.0	+11.1	+9.8%
OP Ratio	11.9%	12.3%	+0.4pts	–
Profit Attributable to Owners of Parent	76.6	86.6	+9.9	+13.0%
ROIC	11.9%	12.0%	+0.1pts	–
ROE	15.6%	16.5%	+0.9pts	–
Basic Earnings per Share (JPY)	166.31	189.67	+23.36	+14.0%
Annual Dividend per Share (JPY)	59.0	66.0	+7.0	–

Segment (billions of yen)	Metric	FY25 Results	FY26 Plan	Change	Change %
Precision Machinery	Orders	303.4	405.0	+101.5	+33.5%
Precision Machinery	Revenue	342.2	400.0	+57.7	+16.9%
Precision Machinery	Operating Profit	57.7	73.5	+15.7	+27.2%
Energy	Orders	194.7	210.0	+15.2	+7.8%
Energy	Revenue	217.8	205.0	-12.8	-5.9%
Energy	Operating Profit	25.9	21.0	-4.9	-19.1%
Building Service & Industrial	Orders	249.2	265.0	+15.7	+6.3%
Building Service & Industrial	Revenue	241.9	260.0	+18.0	+7.5%
Building Service & Industrial	Operating Profit	15.2	20.0	+4.7	+31.1%
Infrastructure	Orders	62.9	60.0	-2.9	-4.7%
Infrastructure	Revenue	57.1	60.0	+2.8	+5.0%
Infrastructure	Operating Profit	4.6	5.5	+0.8	+17.5%
Environmental Solutions	Orders	135.3	130.0	-5.3	-4.0%
Environmental Solutions	Revenue	97.8	95.0	-2.8	-2.9%
Environmental Solutions	Operating Profit	13.0	8.5	-4.5	-34.6%
Others, Adjustment	Operating Profit	-2.8	-3.5	-0.6	–

Shareholder Returns

EBARA’s dividend policy aims for a consolidated payout ratio of 35% or higher, with dividends determined in line with performance for the fiscal year. The FY25 annual dividend per share was raised from the previous forecast of ¥56 to ¥59 (up ¥4 from FY24’s ¥55), and the FY26 dividend plan is ¥66 (up ¥7 from FY25). Share repurchases are implemented for shareholder returns and to optimize the level of shareholders’ equity: in FY25 the company conducted share repurchases totaling ¥20 billion (5.47 million shares) and plans to cancel 5 million shares on February 27, 2026, representing 1.08% of the total number of shares outstanding as of the end of January 2026. For FY26, a share repurchase limit of up to ¥10 billion has been set.

Item	FY24	FY25	FY26 (Plan)
Dividend per share (JPY)	55	59	66
Share repurchases	–	¥20 billion (5.47 million shares)	Limit of up to ¥10 billion

Balance Sheet, Cash Flows and Investment

Total assets at the end of FY25 4Q were ¥1,082.2 billion (+¥77.1 billion from FY24 4Q), with total equity of ¥521.6 billion (+¥36.3 billion) and an equity ratio of 47.0% (-0.1 points). Interest-bearing debt increased ¥74.3 billion to ¥224.7 billion, and the debt-to-equity ratio rose from 0.32 to 0.44. Cash flow from operating activities was ¥40.7 billion (FY24: ¥100.9 billion), cash flow from investing activities was -¥91.2 billion, and free cash flow was -¥50.4 billion (FY24: ¥52.3 billion). For FY26, the company plans operating cash flow of ¥100.0 billion and FCF of ¥20.0 billion. CAPEX rose to ¥100.7 billion in FY25 (FY24: ¥58.6 billion), including ¥34.0 billion in Precision Machinery, and is planned at ¥99.0 billion for FY26; D&A was ¥34.8 billion (FY26 plan: ¥42.0 billion) and R&D expenses were ¥23.2 billion (FY26 plan: ¥25.0 billion).

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.