TOMOE ENGINEERING CO.,LTD.

Business Details

A business segment engaged in the manufacture and sale of Centrifuges and related equipment. Domestically, the segment provides Centrifuge units, equipment installation work, and parts repair to both public-sector and private-sector demand, while overseas it operates through bases in North America, China, and India (local subsidiary established November 2025). The segment has built a vertically integrated business structure, with subsidiary Tomoe Machinery Service Co., Ltd. handling After-Sales Service & Parts Sales, and Tomoe Machinery Co., Ltd. handling sheet metal processing and machining.

Recent Overview

Public-sector and overseas parts/repair sales were strong, but weak private-sector and overseas machinery/equipment installation sales, combined with higher SG&A, led to a slight decline in operating profit

Net sales for the first half of FY2026 (ending October 2026) (November 2025 to April 2026) were ¥8,840 million (up ¥3 million year on year, essentially flat). Domestic public-sector demand rose sharply, up ¥637 million year on year (machinery up ¥282 million, equipment/installation work up ¥103 million, parts/repair up ¥251 million), and overseas parts/repair sales also grew, up ¥343 million, while domestic private-sector demand fell ¥344 million and overseas machinery/equipment installation work declined ¥632 million. Due to an increase in SG&A expenses, primarily personnel costs, operating profit decreased 0.7% year on year to ¥1,873 million. Note that the Indian local subsidiary (TOMOEKOGYO ENGINEERING INDIA PRIVATE LIMITED) was newly added to the scope of consolidation from this interim period.

Key Products

Growth Drivers

• Continued strength in domestic public-sector sales (robust demand related to infrastructure such as sewage treatment; up ¥637 million year on year in H1 FY2026, ending October 2026)
• Revenue growth measures aimed at achieving the targets of ¥20,000 million in net sales and ¥2,800 million in operating profit under the new medium-term management plan (FY2026, ending October 2026, through FY2028, ending October 2028)
• Expansion of new orders, including petrochemical projects, leveraging the Indian local subsidiary (TOMOEKOGYO ENGINEERING INDIA PRIVATE LIMITED, established November 2025 and consolidated from this interim period)
• Enhanced production capacity through construction of a new factory (including relocation of Tomoe Machinery Co., Ltd.) and strengthened R&D framework
• Diversification of revenue sources through new products such as the Binary Power Generation System and Ultra-Low Temperature Belt Dryer
• Growth in overseas parts and repair sales (up ¥343 million year on year in H1 FY2026, ending October 2026; steady expansion of After-Sales Service demand)

Risks

• Risk of weak sales in overseas machinery and equipment installation work (in H1 FY2026, ending October 2026, overseas machinery down ¥363 million, equipment installation work down ¥269 million)
• Margin pressure from rising SG&A expenses, primarily personnel costs (operating profit down 0.7% year on year in H1 FY2026, ending October 2026)
• Sluggish growth in domestic private-sector sales (down ¥344 million year on year in H1 FY2026, ending October 2026)
• Deteriorating business environment for the Chinese subsidiary (Tomoe Rongji Machinery Equipment (Taicang) Co., Ltd.) amid the continued slowdown in the Chinese economy
• Cash flow burden from capital expenditures associated with new factory construction (tangible fixed asset acquisition expenditures of ¥416 million in H1 FY2026, ending October 2026; construction in progress increased from ¥83 million at the end of the prior fiscal year to ¥469 million)
• Impact on overseas business from the prolonged situation in the Middle East (currently assessed as minor, but requires continued monitoring)