EBARA CORPORATION
6361・Prime Market・Machinery
Business
Ebara Corporation, founded in 1920, is a diversified machinery manufacturer offering a wide range of products and services, from fluid machinery such as pumps, compressors, and turbines to semiconductor manufacturing equipment (CMP equipment, vacuum pumps) and waste treatment plants. Its business is organized into five segments—Buildings & Industry, Energy, Infrastructure, Environment, and Precision & Electronics—and it is a global group with 108 consolidated subsidiaries in Japan and overseas. Major customers include semiconductor manufacturers, oil, gas, and electric power companies, building equipment contractors, and public institutions in Japan and abroad. Of the ¥958,285 million in revenue (FY2025), Precision & Electronics forms the largest segment at ¥342,267 million, driving high growth amid demand for generative AI.
Business Model
In addition to design, manufacturing, and sales of products (pumps, equipment, and plants), the company adopts a hybrid model that generates recurring revenue through Service & Support—maintenance, parts supply, and remote monitoring—after delivery. In the Environment segment, the DBO business, which provides EPC (Engineering, Procurement, and Construction) and O&M (Operation & Maintenance) as an integrated offering, is building up long-term comprehensive contracts (order backlog of ¥384,675 million). In Precision & Electronics, service demand linked to the recovery in semiconductor customers' utilization rates is supporting profit, and the company is company-wide promoting its evolution into a solutions provider through the use of installed-base data.
Company Strengths
In FY2025, the Precision & Electronics segment achieved revenue of ¥342,267 million (up 23.0% year on year) and a segment profit margin of 16.9%. Backed by demand for semiconductors for generative AI, orders for CMP Equipment and vacuum pumps expanded, with order intake reaching ¥303,447 million (up 16.7% year on year). ROIC by business stood at 21.0%, the highest level among all segments.
Revenue rose from ¥603,213 million in FY2021 to ¥958,285 million in FY2025, setting a new record high for five consecutive fiscal years. Operating profit also expanded from ¥61,372 million to ¥113,802 million over the same period, achieving an operating profit margin of 11.9% against the E-Plan2025 company-wide target of 10% or higher. Revenue CAGR of 12.1% significantly exceeded the target of 7% or higher.
In FY2025, the Environment segment's operating profit margin reached 13.3%, significantly exceeding the E-Plan2025 target of 7% or higher. Order intake surged to ¥135,392 million (up 89.1% year on year), and the order backlog accumulated to ¥384,675 million. The expansion of long-term comprehensive O&M (Operation & Maintenance) contracts is steadily strengthening the recurring revenue base.
ENVALITH's Perspective
Performance Trend
Revenue increased 59% over five fiscal years, from ¥603,213 million in FY2021 to ¥958,285 million in FY2025, with full-year FY2026 (ending December 2026) revenue forecast at ¥1,020,000 million (up 6.4% year on year). In Q1 of FY2026 (ending December 2026), revenue reached ¥246,311 million (up 15.8% year on year), operating profit was ¥26,749 million (up 18.4% year on year), and the operating margin improved to 10.9% (from 10.6% in the same period of the prior year), marking a new record for a first quarter. Orders received surged to ¥324,951 million (up 62.6% year on year), and the order backlog grew to ¥993,300 million (up 12.0% year on year). As an external factor, expanding semiconductor investment for generative AI drove the Precision & Electronics segment. In the Energy segment, the Service & Support (Energy) business was sluggish due to the impact of the situation in the Middle East, resulting in a segment loss, but this was offset by other segments. The full-year forecast for profit before tax was revised upward to ¥142,000 million (up 28.0% year on year), reflecting the recording of a gain on the transfer of shares in Suido (approximately ¥17.2 billion).
Growth Strategy
Promoting group-wide optimization under E-Plan2028, aiming for FY2028 revenue of ¥1.2 trillion and an operating margin of 14.5% or higher
Amid expanding semiconductor investment for generative AI, the company continues to invest in expanded production capacity for CMP Equipment, vacuum pumps, and other products. Precision & Electronics order intake for Q1 FY2026 (ending March 2026) surged to ¥151,225 million (up 104.4% year-on-year). Order intake for the Equipment sub-segment increased 155.0% year-on-year. The company is building up its order backlog on the back of expected WFE market growth of over 10%.
The company continues to expand orders for new construction and long-term comprehensive operation contracts (O&M) for public waste treatment facilities. In Q1 FY2026 (ending March 2026), it secured a large-scale contract (one new-construction and long-term comprehensive operation contract for a public waste treatment facility), driving Environment segment order intake up 860.7% year-on-year to ¥32,494 million. The order backlog has grown to over ¥387,200 million, forming a stable earnings base.
Under the three-year medium-term management plan "E-Plan2028," starting in 2026, the company is advancing under the theme of "realizing sustainable value creation through overall optimization." While implementing portfolio optimization measures such as the planned transfer of shares in Sui-ing Co., Ltd. (scheduled for July 2026), the company is concentrating resources on its core businesses. Foreign exchange assumptions are set at ¥145 to the US dollar, ¥175 to the euro, and ¥20 to the Chinese yuan.
A key challenge is the recovery of profitability in the Energy segment, which posted a segment loss of ¥1,666 million in Q1 FY2026 (ending March 2026). While capturing demand in the LNG market (expected to grow at around 6% in FY2026 (ending March 2026)) and the petrochemical market, the company is positioning itself to capture the transition to the commercialization phase of new decarbonization markets such as ammonia, hydrogen, and CCUS. Part of the hydrogen business has been integrated into the Energy segment, expanding its business scope.
Last updated: July 17, 2026