EBARA CORPORATION

Business Details

Targeting the buildings equipment market and industrial equipment market, this segment manufactures, sells, and maintains Standard Pumps (land-based, submersible, water supply), Refrigeration & Heating Machinery, and Blowers. With a wide network of domestic and overseas locations, it captures diverse demand including Service & Support in Japan, North America, Europe, Asia, the Middle East, and elsewhere. Under the medium-term management plan "E-Plan2028," the segment is pursuing improved global competitiveness and profitability through strengthening its management foundation via group-wide optimization.

Recent Overview

Orders received remained solid both domestically and overseas, with revenue and operating profit both increasing year on year

In Q1 FY2026 (ending December 2026), revenue was ¥63,075 million (up 12.0% year on year), segment profit was ¥4,408 million (up 1.8%), and orders received were ¥70,375 million (up 17.7%). Overseas, orders in Europe, the Americas, and Asia trended solidly and exceeded the same period of the prior year. Domestically, orders for Service & Support trended solidly and exceeded the same period of the prior year. Meanwhile, sluggishness in the buildings equipment market continued due to rising construction costs and labor shortages in North America, geopolitical risk in Europe, and the real estate market adjustment in China, causing the margin to decline slightly.

Key Products

Growth Drivers

• Continued expansion of domestic Service & Support demand (upward trend in the buildings equipment service market)
• Solid trend in overseas orders in Europe, the Americas, and Asia
• Resilient growth in cooling demand for North American data centers
• Development of new business models through IoT and labor-saving solutions leveraging the EBARA Maintenance Cloud
• Medium- to long-term expansion of industrial equipment investment in anticipation of decarbonization (e.g., growth investment in functional chemicals in the chemical market)

Risks

• Decline in the buildings equipment market due to continued adjustment in China's real estate market (a factor depressing overseas orders)
• Suppressed investment appetite due to rising construction costs, labor shortages, and geopolitical risk in North America and Europe
• Stagnation in industrial equipment investment due to sluggishness in Japan's domestic steel industry (increased imported materials, manufacturing sector weakness)
• Deferral of construction work and revision of plans due to concerns over rising material prices and labor costs (domestic buildings equipment market)
• Continued cautious investment stance due to the impact of US tariff policy (outlook for FY2026, ending December 2026)
• Risk of materializing impacts on logistics disruption and material prices due to the Middle East situation