Chugai Ro Co., Ltd.
1964・Prime Market・Construction
Heat Treatment Business
The company's largest segment, centered on heat treatment furnaces for automobiles, batteries, and semiconductors
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (FY2025 full year, ending March 2025) | ¥18,590 million | ¥13,912 million | ↑ |
| Operating income (FY2025 full year, ending March 2025) | ¥1,500 million | ¥606 million | ↑ |
| Orders received (FY2025 full year, ending March 2025) | ¥18,319 million | ¥18,929 million (estimate) | ↓ |
| Order backlog (end of FY2025, March 2025) | ¥14,435 million | ¥13,648 million (end of prior 3Q) | ↑ |
| Depreciation (FY2025 full year, ending March 2025) | ¥290 million | ¥232 million | ↑ |
Business Details
Engages in the design, manufacture, construction, and sale of heat treatment furnaces for automobiles, machinery, semiconductors, and chemical materials, heat treatment equipment for EV/HV battery and motor parts manufacturing processes, heat treatment furnaces for semiconductor-related functional materials, and air purification equipment. The parent company itself is the main entity involved, accounting for approximately 51% of consolidated net sales (FY2025, ending March 2025), making it the largest segment. The business is characterized mainly by custom-made products, which offer strong appeal to customers and make price pass-through relatively easy.
Recent Overview
Cumulative 3Q net sales rose 4.2% year on year to ¥12,469 million; operating income was ¥289 million
In the nine months ended December 2025 (Q1-Q3 of FY2026, ending March 2026), net sales were ¥12,469 million (up 4.2% year on year). Meanwhile, operating income decreased 33.7% year on year to ¥289 million. Orders received were ¥11,699 million (up 7.3% year on year), with contracts secured for next-generation battery-related heat treatment equipment and electric heating-type machine parts heat treatment equipment. This included a ¥77 million negative impact on operating income from the recognition of a provision for warranties on completed construction contracts (due to a change in accounting estimates). For the full fiscal year (FY2025, ended March 2025), the segment achieved net sales of ¥18,590 million (133.6% of the prior year) and operating income of ¥1,500 million.
Key Products
Growth Drivers
- Robust demand for heat treatment equipment used in next-generation battery and motor parts manufacturing processes for EVs and HVs
- Expansion of heat treatment equipment for functional materials, including semiconductors and next-generation solar cells
- Capital investment demand related to carbon neutrality initiatives (hydrogen/ammonia fuel technology, electrification, and energy efficiency)
- Strengthening of R&D capabilities through the "Thermal Technology Innovation Center" and acquisition of new orders through joint development with internal and external partners
- Progress in price pass-through, supported by the strong appeal of custom-made products, and reductions in procurement costs
Risks
- Orders received declined slightly to 96.8% of the prior year in FY2025 (ended March 2025), suggesting a pause in the buildup of the order backlog
- Risk of cost pressure if rising labor and raw material costs continue
- Risk of demand fluctuation due to changes in the pace of EV adoption in the automotive industry (changes in major customers' capital investment plans)
- Risk of deteriorating project profitability, such as changes in estimates for provisions for warranties on completed construction contracts (operating income declined 33.7% year on year in cumulative 3Q)
- Increasing reliance on domestic demand due to a decline in the overseas sales ratio (overseas sales decreased year on year in cumulative 3Q)
Last updated: June 15, 2026