SHIBAURA MACHINE CO., LTD.
6104・Prime Market・Machinery
Business
Shibaura Machine Co., Ltd. is an industrial machinery manufacturer founded in 1938, operating three business segments: Molding Machines (Injection Molding Machines, Die Casting Machines, Extrusion Molding Machines), Machine Tools (gantry machining centers, ultra-precision machining machines, etc.), and Control Machinery (Industrial Robots, Electronic Control Equipment). The company is composed of Shibaura Machine and 28 subsidiaries, with manufacturing and sales bases across Asia, Europe, the Americas, the Middle East, and other regions worldwide. Its primary customers are manufacturers in industries such as automotive, batteries, semiconductors, optical communications, and energy, and the overseas sales ratio reached 69.7% in FY2026 (ending March 2026). The company changed its name from Toshiba Machine to its current name in 2020, establishing an independent management structure separate from the Toshiba Group.
Business Model
The primary source of revenue is the manufacture and sale of large industrial machinery, produced primarily on a build-to-order basis, with the Molding Machine Business accounting for approximately 74% of net sales. After product sales, subsidiaries such as Shibaura Machine Engineering Co., Ltd. provide maintenance, replacement parts, and installation services to maintain ongoing customer relationships. The company pursues a growth model that combines cost competitiveness through local manufacturing bases in India, Thailand, China, and other locations with market expansion via M&A (re-entry into Europe through the acquisition of LWB GmbH, and strengthening of ultra-precision machining machines in North America through the acquisition of Moore Nanotechnology Systems).
Company Strengths
The company operates manufacturing subsidiaries in India, Thailand, China, Germany, and other countries, and maintains sales and service locations across Asia, Europe, the Americas, and the Middle East. The overseas sales ratio reached 69.7% in FY2026 (ending March 2026), reflecting a multi-region production and sales structure that diversifies dependence on any single region. At the India plant, the company has begun expanding a new factory and starting production of electric injection molding machines, simultaneously capturing local demand and establishing an export hub.
In the Machine Tool Business, the company develops and sells ultra-precision machining centers, ultra-precision aspheric processing machines, and ultra-precision machining machines for AI data centers, building a track record in the optical communications, semiconductor, and medical domains. In the Molding Machine Business, the company has received orders for one of the world's largest die casting machines with a clamping force of 12,000t, achieving technological development to support gigacasting. R&D expenses of ¥2,684 million (FY2026, ending March 2026) were invested, reflecting continued investment to maintain technological superiority.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 68.3% (improved from 58.7% in the previous fiscal year), while interest-bearing debt remained low at ¥10,792 million, resulting in an extremely low D/E ratio of 9.1%. The company holds cash and cash equivalents of ¥42,720 million and has established a ¥10,000 million commitment line with domestic financial institutions. This robust financial foundation supports agile execution of M&A and capital investment.
ENVALITH's Perspective
Performance Trend
Revenue grew rapidly from ¥107,777 million in FY2022 to ¥160,653 million in FY2024, but plunged to ¥132,815 million in FY2026 (down 21.0% year on year). The main cause was the drop-off of a large order for lithium-ion battery separator film manufacturing equipment (Extrusion Molding Machine) destined for China, with Molding Machine Business revenue falling 27.9% year on year to ¥98,854 million. Operating profit fell to ¥4,367 million (down 69.0% year on year), and the operating margin declined to 3.3% (from 8.4% in the previous period). External factors such as U.S. trade policy, delays in the EV shift, and a wait-and-see stance on capital investment in the automotive market weighed on performance. On the other hand, the Machine Tool Business performed well, capturing demand related to AI and optical communications (a tailwind as an external factor), with revenue up 18.6% and operating profit up 3.5-fold. The full-year forecast for FY2027 (ending March 2027) calls for revenue of ¥137,000 million (up 3.2% year on year) and operating profit of ¥4,200 million (down 3.8% year on year), suggesting a continued low-altitude flight.
Growth Strategy
Transforming the business portfolio to reduce dependence on China and the automotive sector through M&A and new market development
A new plant has been added at the India facility to build production capacity for hydraulic and electric injection molding machines, and a technical center has also been opened. The company aims to capture domestic Indian demand and expand exports to the Middle East, Africa, Europe, the Americas, and Southeast Asia. Cost reduction to improve profitability is being pursued in parallel.
An 80% equity stake in LWB Steinl GmbH (now SHIBAURA MACHINE LWB GmbH), a German vertical injection molding machine manufacturer, was acquired in November 2025. The company is pursuing cross-selling opportunities centered on the container and medical domains, along with cost reduction synergies through parts procurement from the India plant. However, a divergence from the business plan arose after the acquisition, and goodwill of ¥2,067 million has already been fully impaired.
The company plans to acquire all equity in Moore Nanotechnology Systems, LLC, a US precision machine tool manufacturer, for approximately ¥23,982 million (planned for the second half of 2026). By leveraging the target company's sales and service network, the company aims to expand sales of ultra-precision machining machines in the European and US markets while developing new markets in the optics, aerospace, defense, and medical fields.
In response to demand for gigacasting from the automotive industry, the company has already received an order for a super-large die casting machine with a world-class clamping force of 12,000t. The company is advancing development of low-pressure casting technology and expanding its lineup to include a 4,500t class in addition to the 6,000–12,000t class, capturing demand for EV body parts manufacturing.
Through an investment in AM Batteries Inc., the company has entered the dry electrode market and is advancing technology development with an eye toward expansion into all-solid-state batteries. The company is also pursuing battery demand for energy storage systems for renewable energy and data centers in parallel. Orders for extrusion molding machines destined for China have turned upward.
Last updated: July 19, 2026