ENVALITH
月島ホールディングス株式会社 logo

TSUKISHIMA HOLDINGS CO., LTD.

6332・Prime Market・Machinery

Official website
月島ホールディングス株式会社 logo
TSUKISHIMA HOLDINGS CO., LTD.6332

Business

Tsukishima Holdings is a holding company (transitioned in April 2023) with two core businesses: the Water Environment Business, which handles water and sewage, sludge recycling treatment, and biomass utilization facilities, and the Industrial Business, which handles chemical, life science, and secondary battery manufacturing-related equipment as well as waste liquid and waste treatment equipment. The company is composed of the parent company and 41 subsidiaries and 15 affiliated companies, with major customers being local governments and public institutions (Water Environment) and chemical, pharmaceutical, food, and battery manufacturers (Industrial). It is a long-established engineering company founded in 1905, and in October 2023 it integrated JFE Engineering's domestic water engineering business, aiming to become a leading company in the water infrastructure field.

Business Model

The core business is the design and construction of equipment and plants on a build-to-order basis, with the order backlog (¥323,517 million at the end of FY2026 (ending March 2026)) serving as a leading indicator of sales. In addition, the company secures stable lifecycle revenue by accumulating multi-year, long-term maintenance contracts such as PFI, DBO, and Comprehensive O&M Services & Repair Works. In the Industrial Business, the company is also strengthening After-Sales Services & Repair Works (repair works and spare parts), creating a structure that balances flow-type revenue with stock-type revenue.

Company Strengths

In October 2023, the company integrated JFE Engineering's domestic water engineering business to establish Tsurumi JFE Aqua Solutions. By consolidating the technologies and know-how of both companies, sales of the Water Environment Business expanded to ¥98,578 million (FY2026 (ending March 2026)). The substantial order backlog of ¥271,543 million provides support for medium-term sales.

The company holds multiple PFI/DBO special purpose companies as consolidated subsidiaries, including Samukawa Water Purification Plant (operations commenced 2006), Owari Water & Energy (2017), Biocoal Kyoto Toba (2021), Oyama Energy Cycle (2024), and Green Cycle Power Iwaki (2025), building a stable earnings base through long-term operation contracts.

In the Industrial Business, the company leverages Tsukishima Kikai's crystallization, filtration, drying, and separation technologies to offer proprietary products such as the CRYSTALLEX® series for lithium-ion secondary battery cathode materials. In FY2026 (ending March 2026), order intake for the Industrial Business reached ¥59,960 million (up 36.5% year on year), and operating profit reached ¥4,148 million (up 95.5% year on year), reflecting a significant improvement in profitability.

ENVALITH's Perspective

Profit attributable to owners of parent for FY2026 (ending March 2026) reached a record high of ¥16,910 million (up 153.6% year on year), but this figure includes ¥12,032 million in gain on sale of fixed assets (transfer of trust beneficiary interest in the logistics facility on the former Ichikawa plant site) and ¥3,314 million in gain on sale of investment securities, both recorded as extraordinary income. The operating income growth rate of 10.4% was solid, but the sharp rise in net income was mainly attributable to one-time factors. The FY2027 (ending March 2026) net income forecast of ¥8,500 million represents a substantial decline of 49.7% year on year, and evaluation of the company's recurring earnings power should place greater weight on trends in operating income and ordinary income.

Orders received for the Water Environment Business in FY2026 (ending March 2026) declined sharply to ¥93,600 million (down 31.6% year on year). The company attributes this to "a lull between large-scale projects," noting that underlying demand for facility renewal and expansion remains solid, but the order backlog also slightly decreased by 1.8% from the previous fiscal year-end to ¥271,543 million. As an external factor, domestic water infrastructure investment is expected to remain firm over the medium to long term against a backdrop of aging infrastructure, but the risk of earnings volatility due to the timing of large-scale project orders warrants continued attention. The recovery in order intake in FY2027 (ending March 2026) will be key to achieving the earnings forecast.

Operating income for the Industrial Business in FY2026 (ending March 2026) expanded sharply to ¥4,148 million (up 95.5% year on year), with the segment margin improving to 8.3%. This result reflects the company's ability to capture capital expenditure demand related to chemicals, life sciences, and secondary batteries (a tailwind from the external market environment) through its technological capabilities and product lineup. On the other hand, the operating margin of the Water Environment Business remained low at 5.9% (down from 6.6% in the previous fiscal year), and the group's overall operating margin of 6.6% still leaves considerable room for improvement. External cost factors such as US tariff policy and rising raw material prices could constrain further margin improvement.

Growth Strategy

Three-pronged strategy of deepening Water Environment integration synergies, capturing decarbonization demand in the Industrial Business, and improving capital efficiency

In addition to the integration of JFE Engineering's domestic water engineering business in October 2023, the Company acquired shares of Higashi Nihon Engineering Co., Ltd. during the fiscal year under review, strengthening operation and management services for water treatment and sewage treatment. The Company will continue to expand orders for PFI, DBO, and Comprehensive O&M Services & Repair Works, aiming to build up earnings across the entire life cycle.

The Company is promoting expansion of orders for environment-related equipment, including plants and standalone equipment for the chemical, cosmetics, food, and pharmaceutical industries, equipment related to lithium-ion secondary battery manufacturing (such as fine particle crystallization equipment), and waste liquid and solid waste treatment equipment. Orders received in the Industrial Business for FY2026 (ending March 2026) increased significantly to ¥59,960 million (up 36.5% year on year), and the order backlog also expanded to ¥51,973 million (up 24.5% year on year).

The Company sold cross-shareholdings, transferred trust beneficiary interests in logistics facilities (former Ichikawa Plant site) (gain on sale of ¥12,032 million), and carried out share buybacks (¥12,797 million) and cancellations (¥11,017 million) of treasury stock. The annual dividend was set at ¥85 (an increase from ¥78 in the previous fiscal year), with ¥88 planned for FY2027 (ending March 2027). The dividend payout ratio declined to 20.6% (FY2026, ending March 2026), but this was due to a one-time sharp increase in net income.

As part of business portfolio management, the Company is working to realize DX promotion and M&A/alliances. During the fiscal year under review, the Company added Tsubame Yahiko Water Service Co., Ltd. to the scope of consolidation and liquidated Tsukishima Kikai (Beijing) Co., Ltd., among other steps to optimize the Group's composition.

Last updated: July 19, 2026