ENVALITH
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Sodick Co., Ltd.

6143・Prime Market・Machinery

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株式会社ソディック logo
Sodick Co., Ltd.6143

Business

Sodick Co., Ltd. is a machine tool manufacturer founded in 1976, centered on its Machine Tools Business (approximately 72% of net sales), which focuses on EDM Machines (Wire, Die-Sinking, Small-Hole), Machining Centers, and Metal 3D Printers. The company also operates an Industrial Machinery Business for injection molding machines, a Food Machinery Business for Noodle-Making Machines & Noodle Production Plants and rice production equipment, and a Precision Molds & Core Technology Business. The group consists of 21 consolidated subsidiaries and 1 equity-method affiliate, with development and manufacturing bases in Japan, China, Thailand, Italy, and elsewhere, and a sales and maintenance service network spanning the United States, Europe, and all of Asia. Major customers are manufacturing companies in industries such as automotive, semiconductor, electronic components, medical devices, and aerospace. Consolidated net sales for FY2025 (ending December 2025) were ¥80,572 million.

Business Model

The company's core business centers on the development, manufacturing, and sales of Machine Tools, Industrial Machinery, and Food Machinery, adopting a model that builds up after-sales service revenue by combining machine unit sales with consumables sales, maintenance services, and processing technology guidance. Within the group, the Core Technology Business (linear motors, ceramics, etc.) supplies core components for Machine Tools in-house, ensuring quality control and cost competitiveness through vertical integration. The sales and maintenance service network spanning 21 overseas locations forms a structure that enhances customer LTV.

Company Strengths

The company developed the "EXC100L+," an ultra-precision wire EDM machine featuring linear motor drive and an all-ceramic construction, along with "ACPS," an automatic power-feed contact advance function. ACPS received the Machine & Robot Parts Award at the 2025 "22nd Super Monozukuri Parts Grand Award." R&D expenses totaled ¥3,464 million (4.3% of net sales), with ongoing basic technology development conducted across a three-region global framework spanning Yokohama, Shanghai, and Silicon Valley.

The company operates 21 consolidated subsidiaries across North America, Europe, Greater China, Southeast Asia, India, South Korea, and other regions, establishing an integrated support framework covering everything from machine sales to maintenance services and machining technology guidance. In FY2025 (ending December 2025), order intake for Machine Tools reached ¥49,575 million (up 131.8% year on year), while the order backlog stood at ¥13,541 million (up 170.4% year on year), reflecting the company's capture of robust demand.

As of the end of FY2025 (ending December 2025), the equity ratio stood at 58.1%, with net assets of ¥90,592 million. Cash and cash equivalents totaled ¥44,983 million, maintaining ample liquidity relative to interest-bearing debt of ¥37,708 million. Having undergone structural reforms following an operating loss of ¥2,819 million in FY2023 (ending December 2023), the company recovered to record operating profit of ¥4,224 million in FY2025 (ending December 2025), demonstrating its financial resilience.

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), net sales were ¥21,624 million (up 14.9% year-on-year), operating profit was ¥1,778 million (up 38.8%), ordinary profit was ¥2,190 million (up 100.8%), and quarterly net profit attributable to owners of parent was ¥1,957 million (up 106.8%), representing substantial increases across all metrics. Against the full-year forecast (net sales of ¥88,500 million, operating profit of ¥5,500 million), Q1 progress rates were solid at 24.4% for net sales and 32.3% for operating profit. The Machine Tools Business served as the driving force, while external factors—continued demand for electronic components and NEVs in Greater China and foreign exchange gains (a shift from a foreign exchange loss of ¥452 million in the same period last year to a foreign exchange gain of ¥225 million in the current period)—pushed up ordinary profit.

Of the Machine Tools Business's external customer sales of ¥16,670 million, Greater China accounted for the largest regional share at ¥5,969 million, and the structure whereby demand trends in Greater China determine business performance remains unchanged. Heightened geopolitical risk amid escalating tensions in the Middle East, unstable foreign exchange rates, and persistently high raw material and energy prices are explicitly cited as sources of uncertainty going forward. In the Food Machinery Business, changes in the competitive environment for Aseptic Packaged Rice Production Equipment led to a decline in both sales and profit, with net sales of ¥1,306 million (down 14.9% year-on-year) and operating profit of ¥206 million (down ¥108 million), and attention should be paid to the widening performance gap between segments.

The company has formulated a commitment-type medium-term management plan targeting net sales of ¥100,000 million and operating profit of ¥10,000 million for FY2029 (ending December 2029), shifting away from the previous rolling-type approach. Whether measures such as strengthening sales capabilities and advancing M&A through the capital and business alliance with Advantage Partners can demonstrate concrete results will be key to medium- to long-term evaluation. Meanwhile, potential share dilution associated with the issuance of convertible bonds (the gap between diluted quarterly net profit per share of ¥26.14 and basic EPS of ¥38.76) continues to warrant close attention. Treasury stock repurchases (4,637,004 shares of treasury stock at period-end) provide a certain check on dilution.

Growth Strategy

Advancing a commitment-based medium-term management plan targeting net sales of ¥100,000 million and operating income of ¥10,000 million for FY2029 (ending December 2029)

Capturing demand from optical connectors for data centers and the aerospace field through ultra-precision products capable of nano-scale machining, such as the ultra-precision wire EDM machine "EXC100L+". Already showing notable results with Q1 FY2026 Machine Tools net sales of ¥16,670 million (up 22.4% year on year) and segment profit of ¥2,302 million (up ¥732 million year on year).

Explicitly stated measures include strengthening sales capabilities, strengthening solutions, strengthening management systems, and promoting M&A. This includes expanding the Metal 3D Printers product lineup and gaining access to European sales channels through the acquisition of AltForm S.r.l. as a subsidiary, accelerating growth through external partnerships. Notable growth in Europe, with Q1 FY2026 European net sales of ¥2,602 million (up 58.2% year on year).

The linear motor business, previously included in the "Other" segment, was integrated into the Machine Tools Business starting Q1 FY2026. By concentrating resources previously directed toward external customers on in-house use, the company aims to enhance the technological competitiveness of its machine tools, pursuing both product differentiation and cost improvement through higher factory utilization rates.

In the Industrial Machinery Business, the company is promoting a shift to higher value-added models while increasing R&D expenses (Q1 FY2026 segment profit of ¥78 million, up ¥12 million year on year). In the Food Machinery Business, sales activities are being expanded into new regions such as Europe and the US, capturing demand for higher food quality in Greater China, South Korea, and Southeast Asia. Responding to changes in the competitive environment for Aseptic Packaged Rice Production Equipment remains a challenge.

Last updated: July 17, 2026