Yokota Manufacturing Co., Ltd.

Business Details

Founded in 1948, Yokota Manufacturing Co., Ltd. handles everything from development to casting, processing, assembly, and sales of industrial pumps and valves, centered on its proprietary special stainless alloy cast steel technology. The company serves diverse demand sectors including power plants, steelmaking, semiconductors, food, chemicals, water and sewerage, and agricultural irrigation, maintaining high profitability through niche-focused products such as its internationally patented Self-Priming Volute Pump. It also provides maintenance parts supply and regular inspection work services, building long-term relationships with customers.

Recent Overview

Pump products drove significant sales growth, achieving higher revenue and profit, though the order backlog declined 16.3% year on year

In FY2026 (ending March 2026), the company achieved higher revenue and profit, with net sales of ¥2,308 million (up 1.4% year on year), operating income of ¥470 million (up 3.2%), and net income of ¥338 million (up 6.0%). Pump products grew significantly by 27.9% year on year on expansion in government demand, food, iron and non-ferrous metals, and overseas sales, while valve products declined 26.3% due to a drop in government demand, and parts and services fell 10.3% due to a decline in sales to the electric power sector, resulting in mixed performance across product lines. The period-end order backlog stood at a low level of ¥575 million (down 16.3% year on year). For the next fiscal year (FY2027, ending March 2027), the company expects increased costs from inflation and rising personnel expenses, forecasting a decline in operating income to ¥430 million (down 8.6% year on year).

Key Products

Growth Drivers

• Diverse expansion in pump product sales across government demand, food, iron and non-ferrous metals, petrochemicals, electric power, and overseas markets (up 27.9% year on year in FY2026, ending March 2026)
• The order backlog for parts and services increased 36.8% year on year to ¥233,380 thousand, which is expected to contribute to sales in the next fiscal year
• Differentiation and sustained relative advantage in niche markets through proprietary technology and international patents such as special stainless alloy cast steel
• Deepening of existing niche markets and development of new niche markets through the mid-term management strategy of strengthening "technical capability × organizational capability"
• Improved productivity and operational efficiency through investment in software (transfer of ¥58,228 thousand in construction in progress to ¥42,637 thousand in fixed assets)

Risks

• Orders received for valve products declined 25.0% year on year (¥356,157 thousand), and the order backlog also continued to decline, down 27.5% year on year (¥69,214 thousand)
• Due to progressing inflation, rising personnel expenses from increased headcount, and other factors, operating income for the next fiscal year (FY2027, ending March 2027) is forecast to decline 8.6% year on year to ¥430 million
• The period-end order backlog stood at a low level of ¥575,584 thousand, down 16.3% year on year, creating uncertainty as a leading indicator for next fiscal year's sales
• A decline in parts and services sales to electric power-related companies drove the overall 10.3% year-on-year decrease in the parts and services segment, with the timing of recovery uncertain
• The proportion of material costs within manufacturing costs rose from 38.7% in the prior period to 41.9%, posing a risk of profit pressure from rising raw material costs
• Changes in the cost structure associated with compensation system reforms, including the abolition of the retirement benefit reserve for directors (reversal of ¥30,405 thousand) and the transition to a director stock benefit reserve