Sodick Co., Ltd.

Business Details

Develops, manufactures, and sells EDM Machines (Wire, Die-Sinking, Small-Hole), Machining Centers, Metal 3D Printers, and laser processing machines. Domestic operations are handled by the Company, while overseas sales and maintenance subsidiaries are deployed globally across the Americas, Europe, Greater China, Southeast Asia, and other regions. In addition to product sales, Maintenance Services & Consumables sales are also a source of revenue. The business has strengths in high-precision, high-accuracy processing, capturing demand from data center optical connectors, smartphones, and aerospace applications. From the current first quarter, the Linear Motor business has been integrated into this segment.

Recent Overview

Revenue and profit both increased significantly, with revenue up 22.4% and profit up ¥732 million, exceeding prior-year levels across Greater China and all regions.

In the first quarter of FY2026 (ending December 2026) (January-March 2026), the Machine Tools Business achieved significant growth in both revenue and profit, with revenue of ¥16,670 million (up 22.4% year-on-year) and segment profit of ¥2,302 million (up ¥732 million year-on-year). In Greater China, robust demand for electronic components, mobile-related, and NEV applications continued, and all other regions also achieved revenue exceeding the prior-year period. On the profit side, margin improvement from higher revenue and improved factory utilization from increased production volume contributed. Additionally, from this first quarter, the Linear Motor business has been integrated into this segment, aiming to strengthen competitiveness through concentrated in-house production.

Key Products

Growth Drivers

• Continued expansion of demand for data center optical connectors, electronic components, mobile-related products, and NEVs in Greater China
• Demand for high-precision processing related to aerospace (solid underlying demand centered on data center optical connectors and aerospace)
• Improved product recognition from the award received by the ultra-precision wire EDM machine "EXC100L+" and capture of nano-scale processing demand
• Strengthened competitiveness of the Machine Tools Business through concentrated in-house production of the Linear Motor business
• Improved factory utilization and cost reduction from consolidation of China production (Suzhou → Xiamen)
• Expanded Metal 3D Printer product lineup and acquisition of a European sales channel through the acquisition of AltForm S.r.l.
• Accelerated growth through strengthened sales in the US, Europe, India, Mexico, etc., and collaboration with Advantage Partners
• Advancement of the commitment-based medium-term management plan targeting revenue of ¥100 billion and operating profit of ¥10 billion for FY2029 (ending December 2029)

Risks

• Continued production adjustments and investment plan reviews in the automotive industry in Japan, the US, and Europe (slowing EV shift, impact of tariff policy)
• Dependence on Greater China revenue (¥5,969 million in Machine Tools Greater China revenue in Q1 FY2026 (ending December 2026)) and geopolitical risk (including escalating tensions in the Middle East)
• Impact on customers' capital investment plans from fluctuations in US tariff policy
• Foreign exchange risk (continued instability in exchange rates)
• Impairment risk related to goodwill (¥3,356 million as of end of March 2026) arising from the acquisition of AltForm S.r.l.
• Uncertain economic environment ahead (elevated raw material and energy prices, the situation in Ukraine)