Unozawa-gumi Iron Works, Limited

Business Details

A business that manufactures and sells fluid machinery including Vacuum Pumps, Blowers & Compressors, Parts, and Repair services. The company handles everything in-house from raw material procurement through machining, assembly, and inspection, supplying to general industrial machinery and semiconductor manufacturing equipment applications. Revenue for FY2026 (ending March 2026) was ¥4,280 million, accounting for approximately 87% of total company revenue of ¥4,918 million, making it the core segment. Export revenue was ¥418 million (down 27.2% year on year).

Recent Overview

While the sharp decline in Vacuum Pumps continued, Blowers and Repair grew significantly, and segment profit declined 20.6%

In the Manufacturing segment for FY2026 (ending March 2026), Vacuum Pumps continued to underperform, declining 26.6% year on year (¥1,418 million), while Blowers & Compressors grew 29.5% year on year (¥1,323 million) and Repair grew 28.4% year on year (¥629 million). Revenue was down only 0.6% year on year at ¥4,280 million, but segment profit declined 20.6% year on year to ¥87 million, indicating deteriorating profitability. Capital expenditure expanded significantly, with the increase in tangible and intangible fixed assets reaching ¥475 million (versus ¥156 million in the prior period), reflecting the full-scale progress of new plant construction.

Key Products

Growth Drivers

• Blowers & Compressors surged 29.5% year on year (¥1,323 million), advancing product mix diversification to offset the decline in Vacuum Pumps revenue
• Repair services expanded significantly, up 28.4% year on year (¥629 million), advancing the conversion of after-sales revenue into recurring income
• Parts revenue continued stable growth, up 5.4% year on year (¥908 million)
• Capacity expansion plans with completion of a new machining building in 2027 and a new assembly building in 2028 (construction in progress increased by ¥333 million year on year, and the increase in tangible and intangible fixed assets surged to ¥475 million)
• Potential for recovery if demand for Vacuum Pumps in semiconductor manufacturing equipment applications bottoms out (currently down significantly, 26.6% year on year)

Risks

• Risk of continued weak demand for Vacuum Pumps used in semiconductor manufacturing equipment (down significantly again in FY2026 (ending March 2026), 26.6% year on year, marking two consecutive years of large declines)
• Risk of capital expenditure delays due to geopolitical risks (Ukraine, Middle East situation) and changes in U.S. trade policy
• Export revenue fell sharply, down 27.2% year on year (¥418 million), with the outlook for recovery in overseas demand uncertain
• Risk of cost increases due to elevated resource, energy, and raw material prices remaining high (cost of sales ratio was roughly flat year on year but remains at a high level)
• Risk to maintaining production volumes and risk of rising construction costs during the new plant construction period (2027-2028)
• Risk of a rebound decline if the sharp growth in Blowers & Compressors and Repair is dependent on temporary demand