ENVALITH
株式会社岡本工作機械製作所 logo

OKAMOTO MACHINE TOOL WORKS,LTD.

6125・Standard Market・Machinery

Official website
株式会社岡本工作機械製作所 logo
OKAMOTO MACHINE TOOL WORKS,LTD.6125

Business

Okamoto Machine Tool Works, Ltd. is a machine tool and Semiconductor-related Equipment manufacturer founded in 1926, operating globally as a "comprehensive abrasive machining equipment manufacturer" in two fields: Surface Grinders and semiconductor wafer polishing equipment. In the Machine Tools segment, the company sells Surface Grinders and Precision Gears as its core products to manufacturers in Japan and overseas, while in the Semiconductor-related Equipment segment, it supplies polishers and grinders for silicon wafers mainly to semiconductor manufacturers. In addition to domestic manufacturing sites (Annaka Plant, Atsugi Plant, etc.), the company has local subsidiaries in the United States, Europe, Singapore, Thailand, and China, building a global manufacturing and sales structure. The consolidated group, including 15 consolidated subsidiaries, recorded net sales of ¥42,513 million for FY2026 (ending March 2026).

Business Model

The company's core products are build-to-order high-precision grinding machines and semiconductor wafer processing equipment, sold through a direct sales structure utilizing domestic and overseas distributor networks and local subsidiaries. The Machine Tools segment offers a wide lineup ranging from general-purpose to ultra-high-precision machines, while Semiconductor-related Equipment boasts a high profit margin (segment profit margin of 20.2% in FY2026 (ending March 2026)). Under management indicators emphasizing operating margin, the company aims to maintain and improve profitability through cost reduction, in-house production, and optimization of production bases.

Company Strengths

The company operates two segments—Machine Tools (net sales of ¥28,946 million) and Semiconductor-related Equipment (net sales of ¥13,567 million, segment profit margin of 20.2%)—with a structure in which Semiconductor-related Equipment maintains a high profit margin to support overall company earnings even during downturns in the Machine Tools market. In FY2026 (ending March 2026), Semiconductor-related Equipment achieved a 5.4% year-on-year increase in revenue.

The company has local subsidiaries in the United States, Europe, Singapore, Thailand, and China, and operates globally through a mixed channel of direct sales and distributors. In FY2026 (ending March 2026), orders received for Machine Tools rose to 115.4% year-on-year, and the order backlog grew to ¥11,239 million (116.6% year-on-year), giving the company an order base that can be expected to convert into revenue in the next period.

In June 2024, the company welcomed Mitsui & Co. as its largest shareholder (through a third-party allotment of new shares) and entered into a capital and business alliance that includes director nomination rights and prior consent matters. Leveraging Mitsui & Co.'s global network, business know-how, and diverse talent is expected to help open new markets and secure procurement routes, strengthening the management foundation toward realizing the company's long-term vision.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) fell sharply for the second consecutive year to ¥1,518 million (down 49.6% year on year), a decline of over 75% from the peak of ¥6,133 million recorded in FY2024 (ended March 2024). The forecast for FY2027 (ending March 2026) [sic] calls for a substantial recovery to operating profit of ¥3,000 million (up 97.6% year on year); however, given that segment profit in the Machine Tools business fell to just ¥103 million this period (down 92.5% year on year), achieving the forecast will require steady conversion of the order backlog into sales and improved profitability, and the probability of achievement warrants verification.

In the Semiconductor-related Equipment business, prolonged silicon wafer inventory adjustment has been an external headwind. While orders received in FY2026 (ending March 2026) of ¥9,325 million (up 117.0% year on year) show signs of recovery, the order backlog of ¥15,945 million (79.0% of the prior-year level) is still being worked through. While mid- to long-term expansion in semiconductor demand driven by the full-scale adoption of generative AI, IoT, and autonomous driving is a tailwind, the swing in earnings forecasts depends heavily on the timing of the market recovery, warranting close monitoring of the external environment.

The increase in tangible and intangible fixed assets for FY2026 (ending March 2026) rose sharply to ¥5,345 million (up substantially from ¥3,923 million in the prior period), reflecting continued active investment. While steps toward future growth were taken, such as the opening of the Tokyo Technical Center and the completion of the automated warehouse building at the Annaka Plant, the operating profit margin fell to 3.6%. That said, financial soundness remains high, with an equity ratio of 63.5%, cash and cash equivalents of ¥14,327 million, and an interest coverage ratio of 27.1x, and the annual dividend was maintained at ¥160 per share. The risk of breaching financial covenants (maintenance of net assets and no ordinary loss for two consecutive periods) is currently low.

Growth Strategy

Medium-Term Management Plan "INOFINITY 700" targets net sales of ¥70 billion in FY2030 (ending March 2030); market development accelerated through capital and business alliance with Mitsui & Co.

The third year of the medium-term management plan, which sets a long-term target of net sales of ¥70 billion for FY2030 (ending March 2030). For FY2027 (ending March 2027), net sales of ¥50,000 million and operating profit of ¥3,000 million have been set as the next-period forecast. The company aims to convert its accumulated order backlog into sales while pursuing a recovery in profitability.

Leveraging Mitsui & Co.'s global network, the company is pursuing the development of new sales markets and diversification of raw material and parts procurement routes. This initiative is positioned at the core of the medium-term plan as a measure to simultaneously strengthen profitability and reduce geopolitical risk.

The Tokyo Technical Center was opened with the aim of enhancing proposal capabilities to customers. Through actual machine demonstrations and technical proposals, the company aims to strengthen its ability to secure orders. This may correlate with the recovery in orders for the Machine Tools business, which increased 115.4% year on year.

The completion of the automated warehouse building at the head office's Annaka Plant has enhanced the parts supply system. Through improved production efficiency and shorter lead times, the company aims to improve the speed at which the order backlog is converted into sales and to enhance customer satisfaction.

The company continues to develop next-generation models of polishers and grinders for the wafer industry. It is strengthening its response to next-generation fields such as processing equipment for advanced packaging (PLP), aiming to secure orders and expand profitability as the semiconductor market recovers.

Last updated: July 19, 2026