SUIDO KIKO KAISHA,LTD
6403・Standard Market・Machinery
Business
Suido Kiko Kaisha, Ltd. is a water treatment specialist founded in 1924, with Toray Industries, Inc. as its parent company. Its business consists of two segments: "Plant Construction" and "O&M". In Plant Construction, the company manufactures, sells, and installs water purification equipment for water supply, water treatment equipment for sewerage, and wastewater treatment equipment for industrial use, while in O&M, it provides maintenance and operation management of water treatment facilities mainly through its subsidiary Suiki Technos Co., Ltd. Its main customers are public sector entities such as national and local governments, and it also serves private factories. In FY2026 (ending March 2026), consolidated net sales were ¥31,209 million, with Plant Construction accounting for 63.2% and O&M for 36.8%. In June 2026, the company delisted from the Standard Market of the Tokyo Stock Exchange, and it now has two shareholders: Metawater Co., Ltd. and Toray Industries, Inc.
Business Model
In the Plant Construction segment, the company recognizes revenue based on progress under construction contracts (percentage-of-completion method), booking sales primarily from large-scale projects such as BT-type and DB-type schemes. In the O&M segment, the company undertakes operation management and maintenance of water treatment facilities under long-term contracts, accumulating stable recurring revenue. Funding is primarily sourced from internal funds and advance payments for construction received from customers, with the Toray Group's CMS (Cash Management System) utilized in the event of shortfalls.
Company Strengths
The consolidated order backlog at the end of FY2026 (ending March 2026) reached ¥56,569 million (up 22.5% year on year), marking a new record high. Of this, Plant Construction accounted for ¥44,653 million (78.9% of the total), driven by contract signings for water purification plant renewal projects under the BT and DB methods and large-scale equipment renewal projects. This high level of order backlog enhances the visibility of revenue and profit over multiple future periods.
Since its founding in 1924, the company has consistently handled the design, manufacturing, construction, and maintenance management of water supply, sewerage, and industrial water treatment facilities, and has continued research and development on water purification technologies such as sedimentation, filtration, chemical injection, and ultraviolet treatment. R&D expenses for FY2026 (ending March 2026) totaled ¥363 million. Its long track record of construction and accumulated technical expertise form the foundation of its trust-based relationships with public-sector clients.
The company operates two segments, Plant Construction (net sales of ¥19,715 million) and O&M (net sales of ¥11,493 million), a structure in which stock-type O&M revenue complements the volatility risk associated with large-scale construction projects. The subsidiary Suiki Technos Co., Ltd. serves as the customer touchpoint through its service station network, and the group is pursuing operational efficiency by consolidating maintenance functions within the group.
ENVALITH's Perspective
Performance Trend
Revenue remained sluggish, declining from ¥22,662 million in FY2022 (ended March 2022) to ¥21,634 million in FY2024 (ended March 2024), but achieved over 20% growth for two consecutive periods, reaching ¥25,966 million in FY2025 (ended March 2025) (up 20.0% year on year) and ¥31,209 million in FY2026 (ending March 2026) (up 20.2% year on year). Operating profit also recovered sharply from a trough of ¥450 million in FY2024 (ended March 2024) to ¥2,044 million in FY2026 (ending March 2026), with the operating margin reaching 6.6%. Amid tailwinds from external factors such as expanding demand for renewal of aging infrastructure and continued national resilience investment, high-level order backlog consumption and improved profitability drove profit growth. Net income surged to ¥1,228 million (up 187.6% year on year), though it should be noted that this figure includes non-recurring factors such as a shift to equity-method income and tax effects.
Growth Strategy
Pursuing structural transformation of the water treatment business centered on O&M expansion, participation in Water PPP, and overseas expansion
Actively pursuing orders for water purification plant redevelopment projects and large-scale equipment renewal projects using BT and DB methods. Order intake for FY2026 (ending March 2026) surged to ¥29,861 million (up 53.5% year on year), and the order backlog reached a record high. The company is building a framework to capture the expansion of the Water PPP market.
Expanding O&M revenue through new operation management contracts and increased orders for maintenance projects. O&M revenue for FY2026 (ending March 2026) increased to ¥11,493 million (up 22.9% year on year), but order intake declined 15.2% year on year due to a decrease in renewals of existing contracts, which remains a challenge. Deepening the customer base by leveraging Suiki Techno's service station network remains an ongoing task.
From the third quarter, the company acquired additional shares in Suido Kiko Middle East, previously an equity-method affiliate, making it a consolidated subsidiary. As a result of consolidation, equity in earnings of affiliates turned from a loss (¥-105 million) to a profit (¥367 million), contributing to a boost in ordinary income. Expenditure for the subsidiary acquisition was ¥1,080 million. The sustainability of future earnings contribution is a point of attention.
Last updated: July 19, 2026