IWAKI CO.,LTD.

Business Details

Iwaki Co., Ltd. develops, manufactures, and sells chemical pumps and peripheral equipment for a wide range of industries, including semiconductors/LCDs, water treatment, medical equipment, chemicals, and new energy. Production is carried out at two domestic plants (Saitama and Miharu), with a global sales network built through 20 overseas affiliated companies in 15 countries. The company also provides repair, after-sales service, and installation work, positioning Maintenance Services (Including Purchased Products) as an independent product category. Under the long-term vision "Iwaki Group Vision NEXT10," the company is currently advancing its Medium-Term Management Plan 2027 (FY2026 (ending March 2026) through FY2028 (ending March 2028)).

Recent Overview

In FY2026 (ending March 2026), both sales and profits increased. Growth in medical equipment, semiconductors, and water treatment drove results, with net income up 8.2% year on year.

In FY2026 (ending March 2026), the first year of the Medium-Term Management Plan 2027, the company achieved net sales of ¥47,692 million (up 4.2% year on year), operating income of ¥5,924 million (up 1.4% year on year), and net income attributable to owners of parent of ¥4,835 million (up 8.2% year on year). By market, the medical equipment market (¥8,841 million, up 6.5% year on year) drove overall performance, while the semiconductor/LCD market (¥7,299 million, up 6.2% year on year) and the water treatment market (¥11,428 million, up 3.9% year on year) also performed steadily. The operating margin declined to 12.4% (from 12.8% in the prior year) due to a temporary increase in manufacturing-related fixed costs associated with production adjustments and inventory optimization, but ordinary income rose 3.2% year on year, supported by an increase in equity-method investment income and foreign exchange gains. For FY2027 (ending March 2027), the company forecasts net sales of ¥50,959 million (up 6.8% year on year) and operating income of ¥6,428 million (up 8.5% year on year). The annual dividend was increased to ¥77.00 (from ¥70.00 in the prior year), and a dividend of ¥92.00 (including a commemorative dividend of ¥10.00) is planned for FY2027 (ending March 2027).

Key Products

Growth Drivers

• Steady expansion of demand in the medical equipment market (¥8,841 million in FY2026, ending March 2026, up 6.5% year on year), driving overall performance
• Stable growth in the water treatment market (¥11,428 million in FY2026, ending March 2026, up 3.9% year on year), with particularly strong performance in the U.S. market (¥7,849 million, up 8.4% year on year)
• Recovery of overseas demand in the semiconductor/LCD market (¥7,299 million in FY2026, ending March 2026, up 6.2% year on year), driven by China, South Korea, and Taiwan
• Stable demand for the flagship Magnet Pump product (¥15,657 million in FY2026, ending March 2026, up 4.0% year on year)
• Expansion of solution-proposal-based sales activities domestically and overseas and promotion of sales growth under the Medium-Term Management Plan 2027
• Efforts addressing six key themes under the long-term vision NEXT10, including expanding contributions to overseas water treatment needs and responding to next-generation energy
• Steady performance in the European chemical market (¥6,096 million in FY2026, ending March 2026, up 1.2% year on year)

Risks

• Deterioration in operating margin (12.4% in FY2026, ending March 2026, down from 12.8% in the prior year) due to a temporary increase in manufacturing-related fixed costs associated with production adjustments and inventory optimization
• Uncertainty in the business environment due to surging crude oil prices and supply concerns stemming from intensifying tensions in the Middle East
• Impact on overseas sales from developments in U.S. trade policy (tariffs) and China's export regulations
• Risk of fluctuations in procurement costs for resin materials, steel, and non-ferrous metals due to sharp exchange rate movements (earnings forecast assumptions: US$1 = ¥151.00, €1 = ¥177.00, RMB1 = ¥21.30)
• Risk of a decline in sales to China in the medical equipment market (a downturn in the Chinese medical equipment market occurred in FY2026, ending March 2026)
• Intensifying price competition due to competitors' expansion into low-cost regions
• Risk of administrative penalties such as export bans due to deficiencies in security export control