Odawara Engineering Co., Ltd.
6149・Standard Market・Machinery
Business
Odawara Engineering Co., Ltd. was founded in 1979 and is headquartered in Matsuda-machi, Ashigarakami-gun, Kanagawa Prefecture, as a specialized manufacturer of winding equipment. In its core Winding Machine Business, the company sells winding equipment for motors used in Winding System for xEV Drive Motors and Generators as well as home appliances, industrial equipment, medical devices, and OA equipment, along with Winding Equipment for Bobbin Coils, all produced on a complete build-to-order basis and sold to customers around the world. In its second segment, the Blower and Housing Equipment Business, the company manufactures and sells small blowers (Cross Flow Fans and Axial Fans) for machine tools, industrial robots, and semiconductor-related applications, as well as Waterproof Lighting Fixture (for Bathrooms) and Residential Ventilation Units and Whole-House Air Conditioning Systems. The company has built a global structure with 7 subsidiaries in Japan and overseas, and has established sales and service bases in North America, Europe, and China.
Business Model
The Winding Machine Business adopts a fully build-to-order production model, developing and manufacturing equipment individually according to customer specifications, thereby securing high entry barriers and strong pricing power. Even after initial equipment delivery, aftermarket revenue from Additional Jigs, Modification Projects, Consumables and Spare Parts continues to accrue, creating a structure that boosts profit margins. The Blower and Housing Equipment Business complements the stable sales base through the manufacture and sale of mass-produced products. In FY2025 (ending December 2025), the Winding Machine Business segment profit margin reached 24.5%.
Company Strengths
In FY2025 (ending December 2025), sales in the Winding Machine Business reached ¥13,583 million (up 49.4% year on year), with segment profit of ¥3,332 million (up 117.0% year on year), both marking record highs. The company has continued R&D focused primarily on technologies to improve quality and productivity in the hairpin forming and welding processes for xEV traction motors, maintaining technological differentiation.
The company has built a global structure with subsidiaries in the United States, Germany, and China. In FY2025 (ending December 2025), sales to Astemo Americas, Inc. amounted to ¥9,093 million (49.9% of total sales), demonstrating its ability to execute large-scale projects in the North American market. In the previous fiscal year, sales to Hitachi Astemo Powertrain (Nanjing) Co., Ltd. accounted for 27.4% of total sales, indicating an ongoing business relationship with major customers.
As of the end of FY2025 (ending December 2025), the equity ratio stood at 74.5% (a significant improvement from 58.9% in the previous fiscal year), with cash and cash equivalents of ¥8,225 million. Interest-bearing debt is extremely minimal, and the interest coverage ratio was 834.9 times. The company maintains a financial policy of funding operations principally with its own capital, resulting in low financial risk.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue peaked at ¥14,703 million in FY2023, fell to ¥13,176 million in FY2024, and then rebounded to a record ¥18,238 million in FY2025. Operating profit also expanded sharply to ¥3,052 million in FY2025. For FY2026, the company forecasts a significant reversal, with full-year revenue of ¥14,000 million (-23.2% year on year) and operating profit of ¥1,170 million (-61.7% year on year). However, actual results for the first quarter of the fiscal year ending December 2026 showed revenue of ¥3,118 million and operating profit of ¥323 million, turning profitable from a loss in the same period of the prior year, aided by the effect of reduced cost ratios on repeat xEV-related projects and a recovery in the Blower and Housing Equipment Business. As an external factor, revisions to automakers' capital expenditure plans driven by changes in US trade policy and subsidies are the primary cause of demand fluctuations.
Growth Strategy
Aiming for sustainable growth through strengthened technology for xEV and brushless motor applications and a focus on North America and China as priority regions
The company has been building up orders centered on winding line systems for xEV motors as well as Additional Jigs, Modification Projects, securing an order backlog of ¥10,624 million as of the end of the first quarter of FY2026 (ending December 2026). Resumption of orders for previously postponed projects has also been confirmed, reinforcing the outlook for future revenue recognition.
As the final year of the Medium-Term Management Plan, the company is pursuing priority initiatives in the Winding Machine Business and the Blower and Housing Equipment Business. In the first quarter, both segments achieved significant year-on-year increases in revenue and profit, and execution of the plan is progressing smoothly.
The company is promoting the expansion of sales of blower application products such as Axial Fans for machine tools and robots and the Big Fan (Large Fan for Warehouses) as strategic items. In the first quarter, orders for machine tool and robot applications increased significantly, and segment profit recovered sharply, up 530.1% year on year, demonstrating the effectiveness of these initiatives.
Last updated: July 17, 2026