Mitsubishi Kakoki Kaisha, Ltd.
6331・Prime Market・Machinery
Business
Mitsubishi Kakoki is a specialist industrial machinery and plant engineering manufacturer founded in 1935, listed on the Tokyo Stock Exchange Prime Market. It operates three segments: Engineering, covering City Gas & Petroleum-Related Plants, chemical plants, Sewage Treatment & Water Treatment Equipment, and Hydrogen Production Equipment; Standalone Machinery, including oil purifiers, separators, and filters; and the decarbonization-related GX Business. Its major customers span a wide range of industries, including chemicals, semiconductor materials, shipbuilding, shipping, and government agencies (sewage treatment). In addition to domestic manufacturing sites (Kawasaki Plant, Yokkaichi Office, and Kashima Plant), the company has overseas bases in the Netherlands, Thailand, China, and Taiwan, conducting business globally. Consolidated net sales for FY2026 (ending March 2026) were ¥84,240 million.
Business Model
Engineering recognizes revenue from custom order-based plant/equipment design, manufacturing, and installation tailored to customer needs. Standalone Machinery supports high profit margins through the sale of standard products such as oil purifiers, supplemented by recurring revenue from after-sales service parts and work. GX Business handles decarbonization projects such as hydrogen production equipment and biogas-related equipment on an order basis. The structure involves accumulating order backlog and recognizing revenue according to construction progress, and the order backlog of ¥90,842 million (as of the end of FY2026 (ending March 2026)) enhances visibility into future sales.
Company Strengths
In FY2026 (ending March 2026), Standalone Machinery achieved net sales of ¥20,170 million against operating profit of ¥5,410 million, an operating margin of 26.8%. Mitsubishi Oil Purifier is an established brand with a track record of technology licensing to South Korea's Samgong Co., Ltd., and in addition to unit sales, recurring revenue from after-sales service parts and construction work underpins the high margin structure.
Achievements in proprietary technology development have been accumulating, including the start of demonstration testing of the "HyDel™" hydrogen storage alloy and fuel cell integrated system, NEDO adoption of a hydrogen production equipment utilizing CO2 separation membranes, and acquisition of an NK classification inspection certificate for lubricating oil purifiers for ammonia-fueled vessels. R&D expenses for the GX Business amounted to ¥659 million (FY2026, ending March 2026), accounting for over 80% of the company's total R&D expenses.
As of the end of FY2026 (ending March 2026), the total order backlog stood at ¥90,842 million (Engineering: ¥38,697 million, GX Business: ¥41,504 million, Standalone Machinery: ¥10,640 million). In particular, the order backlog for the GX Business remained at a high level, at 104.1% year-on-year, providing support for medium-term sales recognition.
ENVALITH's Perspective
Performance Trend
Revenue expanded approximately 1.9x over four fiscal periods, from ¥45,438 million in FY2022 (ended March 2022) to ¥84,240 million in FY2026 (ending March 2026), with particularly accelerated growth achieved in the most recent two periods. The operating margin improved from 6.1% in FY2022 (ended March 2022) to 10.9% in FY2026 (ending March 2026). The main drivers of revenue growth in FY2026 (ending March 2026) were the new segment reporting of the GX Business (¥18,322 million) and progress on large-scale projects in Engineering (¥45,747 million). As external factors, steady domestic private-sector capital investment and expanding decarbonization demand provided tailwinds. The recording of a gain on sale of fixed assets of ¥1,448 million as extraordinary income also boosted net income (¥7,546 million, up 54.7% year on year). For FY2027 (ending March 2027), revenue of ¥80,000 million and operating profit of ¥8,800 million are forecast, representing a decline in both revenue and profit, suggesting the company may be entering a plateau in growth.
Growth Strategy
Cultivating GX Business as a third pillar while renewing the production base through the restructuring of the Head Office and Kawasaki Plant
Based on the policy of the Medium-Term Management Plan (FY2025–FY2027), the GX Business, which consolidates new decarbonization-related businesses and improved technologies, was established as an independent reporting segment. In its first year, it recorded net sales of ¥18,322 million and operating profit of ¥645 million, growing to account for 21.7% of group net sales. Going forward, improving profit margins and diversifying the customer base remain challenges.
The implementation plan for the reconstruction of the Head Office and Kawasaki Plant was resolved, and construction work has commenced. Construction in progress expanded to ¥3,665 million, and a syndicated term loan facility of ¥10,000 million has been arranged as a funding source (not yet drawn down). Improved production efficiency and cost reduction effects are expected upon completion of the restructuring.
Efforts to secure orders for large-scale projects and strengthen progress management have been reinforced, centered on the Engineering and GX Business segments. In FY2026 (ending March 2026), contract assets increased to ¥16,769 million (up 27.5% year on year), enhancing visibility of net sales for the following period and beyond. Cumulative net sales for the second quarter of FY2027 (ending March 2027) are forecast at ¥43,000 million (up 19.0% year on year).
The company is working to enhance corporate value through town hall meetings in which the Representative Director personally engages in dialogue with all employees, IR/SR activities emphasizing dialogue with stakeholders, and strengthened external communication. A stock split (1 share to 3 shares, effective April 1, 2025) has also been implemented to improve share liquidity.
Last updated: July 19, 2026