HOSOKAWA MICRON CORPORATION

Business Details

In addition to the manufacture and sale of Pulverizing & Classifying Equipment, Mixing & Drying Equipment, Particle Design & Granulating Equipment, dust collection equipment, and other products, this core segment of the Group also provides new material development and commercialization centered on composite nanoparticles, as well as Fine Powder Contract Processing Service. It serves a broad range of industries including chemicals, electronic materials, food, pharmaceuticals, and energy, and operates through a global network of sites including Japan, Europe, the United States, and Asia. Air pollution prevention equipment and precision air conditioning control equipment are also offered for the Japanese market.

Recent Overview

A decline in the profit margin due to order delays in Europe caused segment profit for the first half to fall 15.1% year on year.

Net sales for the first half of FY2026 (ending September 2026) increased to ¥30,538 million (up 7.2% year on year), but segment profit declined to ¥2,504 million (down 15.1% year on year) as the profit margin fell due to a decrease in sales stemming from order delays in the European region. Demand for the food sector remained solid, and there was also an increase in equipment investment projects for related industries amid heightened geopolitical risk. On the other hand, difficulty in obtaining rare-earth-related materials due to worsening Japan-China relations, as well as concerns over rising energy prices and tight supply of petrochemical products stemming from escalating tensions in the Middle East, are seen as risks to future performance. The Maintenance Service business continued to show an expanding trend.

Key Products

Growth Drivers

• Continued strengthening and expansion of the aftermarket (Maintenance Service) field
• Steady trend in demand from the food market
• Increase in equipment investment projects for related industries amid heightened geopolitical risk
• Capturing SDG- and sustainability-related projects (lignin recycling processes, rCB, etc.)
• Receipt of large-scale orders for secondary battery electrode materials
• Providing added value through digital solutions leveraging IIoT and DX technologies
• Expansion of the global site network (new establishments in Jordan, Austria, India, etc.)

Risks

• Continued decline in profit margin due to order delays and insufficient sales in the European region
• Emergence of a tendency to postpone investment decisions on large-scale projects due to escalating tensions in the Middle East (military attacks on Iran)
• Rising raw material procurement costs due to sharp increases in energy prices and supply uncertainty for petrochemical products
• Difficulty in obtaining rare-earth-related materials due to worsening Japan-China relations
• Stagnant demand in the European market due to the slump in German manufacturing
• Postponement of investment decisions on large-scale projects due to U.S. trade policy (additional tariffs) and impact on the contract processing business
• Downward pressure on future net sales due to a decrease in order backlog (down 5.3% year on year)
• Deterioration of the order environment due to China's excess supply adjustment and weak domestic demand