EBARA JITSUGYO CO.,LTD.

Business Details

A fabless business that outsources production of in-house developed products—such as ozone concentration meters, deodorizing systems, energy-saving blowers, water treatment equipment, infectious disease control products, and residential storage battery systems (ZEB/ZEH-related)—to partner companies for sale. The segment also handles planning, design, and construction of private-sector wastewater treatment facilities, aquaculture-related facilities, and water landscape facilities. It maintains both public and private sector channels, and under the medium-term management plan "EJ2027," positions "disaster prevention/mitigation," "storage batteries," and "fisheries" as priority focus areas.

Recent Overview

Orders received surged 281.9% year on year, while sales and profit saw a slight decline

In Q1 FY2026 (ending December 2026), the company received a large-scale order for land-based aquaculture equipment in the water treatment plant field, and sanitary equipment for public sector clients also grew in the medical field, resulting in a sharp expansion of orders received to ¥4,482 million (up 281.9% year on year). The order backlog also grew to ¥6,993 million (up 192.1% year on year). Meanwhile, although the deodorizing field increased, sales declined in the water treatment plant and medical fields, resulting in sales of ¥2,244 million (down 1.4% year on year) and segment profit of ¥544 million (down 6.6% year on year).

Key Products

Growth Drivers

• Receipt of large-scale orders such as land-based aquaculture equipment in the water treatment plant field (order backlog has grown to ¥6,993 million, up 192.1% year on year, expected to contribute to future sales)
• Revenue contribution from increased sales in the deodorizing field
• Strategic investment in priority focus areas of the medium-term management plan "EJ2027" (disaster prevention/mitigation, storage batteries, fisheries)
• Expansion of orders in the medical field, including sanitary equipment for public sector clients
• Steady trends in demand for renewal/development of water infrastructure and disaster prevention/mitigation in the public sector

Risks

• Sales in the water treatment plant and medical fields declined year on year, creating short-term earnings volatility risk due to timing gaps in recognizing revenue from large-scale orders
• Segment profit margin declined from 25.6% in the same period last year to 24.2%, reflecting downward pressure from factors such as increased fixed costs
• Production dependency risk on partner companies under the fabless model (supply constraints, cost pass-through risk)
• Risk of future-period order leveling (rebound decline risk) due to concentration of large-scale order receipts
• Impact of economic uncertainty stemming from Middle East conditions and trade policies of various countries on private-sector capital investment