AMADA CO.,LTD.

Business Details

Comprised of the Sheet Metal division (laser machines, NCT punch presses, press brakes, etc.) and the Micro Welding division (precision laser equipment, resistance welding equipment, etc.). The Company formulates comprehensive strategies domestically and internationally, deploying manufacturing, sales, and service across a four-pole structure in Japan, North America, Europe, and Asia. Main customers span manufacturing industries broadly (automotive, data center-related, semiconductor manufacturing equipment, aerospace, etc.). Revenue of ¥326,485 million in FY2026 (ending March 2026) represents the core business, accounting for 74.6% of consolidated total. Although revenue declined slightly year on year, demand for North American data centers drove results.

Recent Overview

Although M&A contributions and data center demand provided support, operating profit declined 7.6% year on year due to tariffs and rising costs.

In the Metal Processing Machinery Business for FY2026 (ending March 2026), revenue was ¥326,485 million (down 1.1% year on year) and operating profit was ¥37,333 million (down 7.6% year on year). In the Sheet Metal division, demand from North American data centers and infrastructure was robust (up 4.6% year on year), while Europe declined 4.9% year on year due to delayed capital expenditure amid economic slowdown. The Micro Welding division declined 7.3% year on year, weighed down by curtailed battery-related investment amid the EV market slowdown and a sharp revenue decline in North America (down 25.3% year on year). Cost increases from U.S. tariff impacts and rising labor costs pushed the operating margin down from 12.2% to 11.4%.

Key Products

Growth Drivers

• Solid demand for data center-related capital expenditure (switchgear, server racks, cooling systems, etc.) driven by global AI adoption (continuing in North America and Asia)
• Capturing capital expenditure demand from the reshoring trend of production to the U.S. in North America, driven by tariffs
• Improved profitability through the launch of new high-power fiber laser products and globally strategic models for overseas markets
• Increased after-sales service revenue through expansion of connected units for the IoT service "V-factory"
• Capturing infrastructure, aerospace, and semiconductor-related demand in emerging markets such as India and ASEAN
• Driven by defense and infrastructure-related investment in Europe and automation investment in Eastern Europe

Risks

• Delayed demand recovery in the Sheet Metal and Micro Welding divisions due to prolonged weakness in the automotive-related industry
• Cautious investment decisions by European and Asian customers and trade stagnation due to the impact of U.S. tariff policy
• Delayed consumption of the order backlog due to delays in customer factory construction, etc. (already materialized in the current period)
• Increased costs and declining operating margin due to rising labor costs, particularly in Europe and the U.S.
• Continued weak demand in the Micro Welding division due to reduced global investment related to EV batteries
• Prolonged economic slowdown and deferred capital expenditure in major European markets such as Germany, France, and Nordic countries