Unozawa-gumi Iron Works, Limited
6396・Standard Market・Machinery
Business
Unozawa-Gumi Iron Works, Ltd. is a long-established fluid machinery manufacturer founded in 1899, operating two main businesses: Manufacturing, which designs, manufactures, and sells Vacuum Pumps, Blowers & Compressors, transport equipment, and other products in-house; and Real Estate Business, which involves the leasing and management of office buildings and parking lots in Tokyo. The Manufacturing business primarily serves customers in the semiconductor manufacturing equipment and industrial machinery sectors, with an integrated production system covering everything from machining to assembly and inspection. The Real Estate Business began in 1984, utilizing the former site of the Shibuya plant, and the company owns and operates a jointly held building with Tokyu Fudosan (Unosawa Tokyu Building) as well as the Ebisu Business Tower. The company transitioned to the Standard Market in 2022, and in September 2024 achieved dual listing on the Main Market of the Nagoya Stock Exchange.
Business Model
In addition to sales of new products such as Vacuum Pumps and Blowers & Compressors, the Manufacturing business has a multi-layered revenue structure that builds up after-sales revenue through Parts sales (¥908 million) and Repair services (¥629 million). The Real Estate Business, underpinned by long-term leasing contracts, stably generates high profitability with net sales of ¥637 million and an operating margin of 74.6%, serving to offset fluctuations in the performance of the Manufacturing business. Capital expenditures and long-term working capital are funded through internal funds and long-term borrowings from financial institutions.
Company Strengths
Since its founding in 1899, the company has continued manufacturing Vacuum Pumps, Blowers & Compressors for 125 years, maintaining an integrated in-house production system encompassing machining, assembly, and inspection. Building on this accumulated technology, the company has adopted a strategy to expand sales of special-specification large blowers, and Blowers & Compressors sales grew sharply, up 29.5% year on year to ¥1,323 million.
Repair services grew 28.4% year on year to ¥629 million, and Parts sales grew 5.4% year on year to ¥908 million, establishing a highly stable, recurring revenue source that does not depend on product sales. The company's management policy explicitly emphasizes expanding Repair sales by leveraging manufacturer-level quality and short delivery times as strengths, and maintaining customer relationships throughout the entire product lifecycle contributes to revenue stability.
The Real Estate Business has a highly profitable structure, with sales of ¥637 million against segment profit of ¥475 million, an operating margin of 74.6%, functioning as a stable earnings base that complements fluctuations in the performance of the Manufacturing business. Capital expenditure of ¥27 million remains low relative to depreciation expense of ¥57 million, maintaining strong cash generation capability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥5,517 million in FY2024 (ended March 2024), then declined for two consecutive periods to ¥4,955 million in FY2025 (ended March 2025) (down 10.2% year on year) and ¥4,917 million in FY2026 (ending March 2026) (down 0.7% year on year). Operating profit also continued its downward trend, falling from ¥636 million in FY2024 (ended March 2024) to ¥562 million in FY2026 (ending March 2026). Net income increased to ¥433 million (up 9.3% year on year), but this was the result of a contribution from extraordinary gains of ¥129 million, including gain on sale of investment securities of ¥94 million and gain on sale of fixed assets of ¥36 million, indicating that underlying earning power is on a declining trend. As external factors, sluggish demand for semiconductor manufacturing equipment for Vacuum Pumps and the postponement of capital investment due to changes in U.S. trade policy are weighing on performance. The equity ratio improved to 45.3%, strengthening the financial base.
Growth Strategy
Rebuilding the Manufacturing business through capacity expansion via new plant construction and diversification of the product portfolio
The company plans completion of a new machining building in 2027 and a new assembly building in 2028. In FY2026 (ending March 2026), construction in progress expanded sharply to ¥373 million (up from ¥40 million in the prior period), and the increase in tangible and intangible fixed assets reached ¥475 million, marking entry into a full-scale investment phase. Upon completion, expanded production capacity is expected to improve order-handling capability and enhance manufacturing cost efficiency.
To offset the decline in Vacuum Pumps (down 26.6% year on year), Blowers & Compressors (up 29.5% year on year to ¥1,323 million) and Repair services (up 28.4% year on year to ¥629 million) grew sharply. Through the recurring-revenue conversion of after-sales service income and diversification of the product portfolio, the company is working to reduce dependence on specific products and stabilize earnings.
Amid concerns that changes in US trade policy and geopolitical risk could lead to postponement of capital expenditure, securing orders is set as the top priority. The forecast for FY2027 (ending March 2027) shows a conservative outlook with net sales of ¥4,700 million (down 4.4% year on year), and order trends are attracting attention as a leading indicator of earnings recovery.
Last updated: July 19, 2026