EBARA JITSUGYO CO.,LTD.
6328・Prime Market・Machinery
Business
Ebara Jitsugyo Co., Ltd. is an environmental infrastructure company operating three businesses: manufacturing and sale of environmental equipment and systems (Manufacturing Business), design and construction for water and sewage infrastructure (Engineering Business), and trading of pumps, air conditioning equipment and other products (Trading Business). Founded in 1946 and listed on the Prime Market of the Tokyo Stock Exchange, its main customers are government agencies (67.3% of order intake) and private-sector companies. Building on its agency agreement with Ebara Corporation, the company also offers proprietary in-house developed products such as ozone concentration meters, deodorizing systems, water treatment plants, and storage battery systems. It has subsidiaries including Ebajitsu Co., Ltd. and Ebara Jitsugyo Technologies Co., Ltd., and provides environmental conservation solutions across the group as a whole.
Business Model
In the Engineering Business (54.5% of sales composition), the company receives orders directly from government agencies and procures equipment and materials manufactured by the Ebara Group to perform design and construction. In the Trading Business (27.3% of sales composition), the company sells pumps, air conditioning equipment, and other products to private-sector customers based on agency agreements with the Ebara Group. In the Manufacturing Business (18.2% of sales composition), the company develops products in-house on a fabless basis, outsourcing production to partner companies before selling them. The combination of these three businesses forms a structure that captures demand from both the public and private sectors.
Company Strengths
In the Engineering Business for FY2025 (ending December 2025), the company achieved a segment profit margin of 19.3% and segment profit of ¥4,332 million (up 76.8% year on year). The order backlog at fiscal year-end stood at ¥25,084 million (up 8.2% year on year), providing high visibility into revenue and profit for the following period. Continued growth in demand for public water infrastructure renewal and disaster prevention/mitigation is supporting sustained growth in orders received.
The company achieved the final-year targets of its mid-term management plan "EJ2027" (2025-2027)—operating profit of ¥5,500 million and ROE of 15.0% or higher—one year ahead of schedule in the first year, FY2025 (ending December 2025), with operating profit of ¥6,121 million and ROE of 17.1%. The gross profit margin of 33.8% also exceeded the final-year plan target of 31.1%.
At the end of FY2025 (ending December 2025), the equity ratio stood at 57.7%, with cash and cash equivalents of ¥14,524 million. Interest-bearing debt is minimal, and the ratio of cash flow to interest-bearing debt is a low 1.1 years. The company maintains a stable funding structure relying primarily on internal funds, securing capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years bottomed out at ¥30,229 million in FY2022 and has continued on a recovery trend, with FY2025 revenue reaching a new record high of ¥41,211 million. Cumulative Q1 FY2026 results showed revenue of ¥14,814 million (up 2.1% year on year), operating profit of ¥3,480 million (up 15.9% year on year), and quarterly net profit attributable to owners of the parent of ¥2,433 million (up 14.8% year on year), representing both revenue and profit growth. Gross profit margin improved from 33.5% in the same period of the prior year to 36.6%, with profit growth substantially outpacing revenue growth. In terms of external factors, steady demand for public water infrastructure renewal and disaster prevention/mitigation has provided tailwinds, while economic uncertainty stemming from the situation in the Middle East and trade policy is recognized as a downside risk going forward. The full-year forecast (revenue of ¥44,000 million and operating profit of ¥6,300 million) remains unchanged.
Growth Strategy
Under the three basic policies of "EJ2027," the company aims for net sales of ¥45,000 million in 2027 and ¥60,000 million in 2030
Capturing demand for public water infrastructure renewal and disaster prevention/mitigation, the company continues to record stable sales and profits backed by a high order backlog (¥32,779 million at the end of 1Q FY2026). Gross profit margin in the Engineering Business is improving, reflecting thorough profitability management.
Positioning demand for disaster prevention and mitigation facilities such as rainwater drainage systems as a key growth driver, the company is promoting order acquisition in both the Engineering Business and the Manufacturing Business. Expanding public-sector disaster prevention investment in the external environment is also serving as a tailwind.
In 1Q FY2026, the Manufacturing Business received a large order for land-based aquaculture equipment, causing the order backlog to surge 192.1% year on year to ¥6,993 million. The exploration of new areas under the medium-term plan "EJ2027" is beginning to materialize as concrete orders.
Under the medium-term management plan "EJ2027," storage batteries are positioned as one of the focus areas, and the company is promoting exploration and commercialization of this new area. At present, no specific orders or sales results are disclosed in the financial results summary, and continued monitoring of progress is needed.
Effective January 1, 2026, the company implemented a stock split at a ratio of two shares for every one share of common stock held, aiming to improve share liquidity and expand its investor base. The annual dividend forecast for FY2026 (ending December 2026) is ¥75 per share (after the stock split), which is equivalent to ¥150 before adjusting for the split—representing a substantial increase from the ordinary dividend of ¥100 in the previous fiscal year.
Last updated: July 17, 2026