FURUKAWA CO.,LTD.

Business Details

Centered on Furukawa Industrial Machinery Systems Co., Ltd., this segment manufactures and sells pumps, crushers, grinders, classifiers, granulators, belt conveyors, environmental equipment, recycling plants, steel structures, bridges, etc., and provides related services and construction contracting. Major customers are in the quarrying, construction, and infrastructure fields. The segment operates along three axes—Material Handling Machinery, Fluid Machinery (Pumps), and Contractor Business—and its strategy centers on proposal-based sales backed by strengthened engineering capabilities. In April 2026, Earthtechnica became a consolidated subsidiary, and the company is considering strengthening and integrating the crusher business.

Recent Overview

All three axes—Material Handling Machinery, Fluid Machinery, and Contractor Business—posted lower revenue, resulting in a decline in both revenue and profit

In FY2026 (ending March 2026), the Industrial Machinery division recorded revenue of ¥18,268 million (down ¥3,944 million year on year) and operating income of ¥1,646 million (down ¥560 million year on year), a decline in both revenue and profit. This resulted from a combination of factors: lower sales of quarry plants (Material Handling Machinery), lower sales of pump plants (Fluid Machinery), and a decline in completed volume of bridge construction work (Contractor Business). On the other hand, effective April 1, 2026, Earthtechnica (60% of issued shares acquired from Kawasaki Heavy Industries, Ltd. for ¥7,020 million) became a consolidated subsidiary, and from FY2027 (ending March 2027) an Earthtechnica division will be newly established within the Machinery business. In FY2027 (ending March 2027), revenue growth is expected, mainly driven by increased completed volume of belt conveyor projects in the Contractor Business.

Key Products

Growth Drivers

• Strengthening of the crusher business's technological capability, productivity, and cost competitiveness, and expansion of overseas business through Earthtechnica's consolidation as a subsidiary in April 2026
• Increased completed volume of belt conveyor projects in the Contractor Business (FY2027 (ending March 2027) forecast revenue of ¥18,900 million)
• Optimization of sales, technology, and production structures and creation of synergies through integration of the crusher business with Earthtechnica
• Expanded allocation of management resources to the growing environmental recycling field
• Capturing replacement demand (such as pump equipment for sewage treatment plants) driven by the aging of domestic infrastructure
• Expansion of proposal- and solution-based sales and acquisition of new customers through strengthened engineering capabilities

Risks

• Risk of earnings fluctuation due to delays in revenue recognition timing for large-scale projects (arising from the make-to-order business model)
• Risk of plant construction delays and additional cost incurrence (Contractor Business, Material Handling Machinery)
• High macro sensitivity of performance to trends in private capital investment and public investment
• Risk of downside in construction and resource investment due to the impact of US trade policy and geopolitical risks
• Goodwill and PMI risks associated with the Earthtechnica integration (the amount of goodwill is not yet finalized)
• Operational risk in which order accuracy and project management proficiency within the Industrial Machinery division significantly affect profitability