Maezawa Industries, Inc.
6489・Standard Market・Machinery
Business
Maezawa Industries, Inc. is a manufacturer specializing in water and sewage infrastructure, founded in 1937. The company operates three segments: Environmental Business (manufacture, sale, and installation of water treatment machinery and equipment), Valve Business (manufacture and sale of valves, cocks, and gates for water and sewage systems), and Maintenance Business (repair and maintenance management of equipment). Its main customers are local governments and public institutions, and it handles the development, renewal, and maintenance of domestic water and sewage facilities in an integrated manner. Its consolidated subsidiary, Maezawa Engineering Service Co., Ltd., operates the Maintenance Business, and the company is also expanding overseas through its Bangkok representative office. In FY2025, net sales reached ¥37,499 million, and the order backlog reached ¥32,097 million.
Business Model
The Environmental and Valve Businesses are manufacturing/construction-type businesses based on orders received from local governments and other entities, with the accumulation of order backlog enhancing the visibility of future sales. The Maintenance Business is a high-profitability model that continuously receives orders for repair and maintenance management of existing equipment, achieving a segment profit margin of approximately 23.6% in FY2025. The combination of these three businesses forms a stable earnings base that is less susceptible to economic fluctuations. The target dividend payout ratio is set at 30% over the medium to long term.
Company Strengths
The order backlog at the end of FY2025 stood at ¥32,097 million (up 11.0% year on year). The two core businesses saw substantial increases, with the Environmental Business at ¥22,317 million (up 9.9% year on year) and the Valve Business at ¥6,587 million (up 31.3% year on year). Orders received also expanded to ¥40,678 million (up 4.8% year on year), providing high visibility as a leading indicator of future sales.
In FY2025, the Maintenance Business posted net sales of ¥12,566 million (up 8.5% year on year) and segment profit of ¥2,972 million (up 22.1% year on year), achieving a profit margin of approximately 23.6%. Orders received also grew steadily, up 2.7% year on year, driven by demand for renewal and life extension amid aging facilities, making it a highly profitable segment that underpins the group's overall earnings.
The company invests ¥423 million annually in research and development. Its AI-based musty odor prediction model was adopted for the Ministry of Land, Infrastructure, Transport and Tourism's AB-Cross project, and it has also achieved results in energy-saving sewage treatment plant renovation technology (B-DASH project). The company continues research in decarbonization and resource circulation fields, including PFAS removal technology and sewage sludge composting, aiming for technological differentiation.
ENVALITH's Perspective
Performance Trend
For the nine months of the third quarter of the fiscal year ending May 2026, revenue was ¥27,864 million (up 5.6% year on year), operating profit was ¥3,964 million (up 15.9%), ordinary profit was ¥4,137 million (up 16.9%), and quarterly net profit attributable to owners of the parent was ¥2,648 million (up 17.1%), achieving double-digit profit growth across all profit line items. Looking at full-year results over the past five fiscal years, revenue and operating profit peaked in FY2024 at ¥36,511 million and ¥4,875 million respectively, and although FY2025 saw revenue increase to ¥37,499 million, operating profit declined to ¥4,654 million. However, in FY2026 (ending May 2026), profit margins are on a recovery track thanks to cost reduction effects and strong performance in the Valve Business and Maintenance Business. As an external factor, the continued expansion of demand for renewal of aging infrastructure is supporting revenue growth.
Growth Strategy
Promoting the three pillars of growth strategy, profitability enhancement, and management foundation under the medium-term three-year plan "Opening the Future with People and Technology"
Promoting improved profitability in the Valve Business through optimization of manufacturing processes and cost reduction, and expanding the Maintenance Business through strengthened customer response capabilities. Clear results have been achieved in the cumulative third quarter, with Valve Business profit up 32.3% year-on-year and Maintenance Business profit up 12.0% year-on-year.
Strengthening proposal-based sales to capture demand for the renewal and reconstruction of aging water and sewage facilities, as well as demand for biomass and energy-saving equipment aimed at decarbonization and a resource-recycling society. Cumulative third-quarter orders received were ¥11,832 million (up 14.7% year-on-year), a high level, but segment profit declined 5.1% year-on-year, indicating that profitability management remains a challenge.
Cumulative third-quarter orders received across all three segments totaled ¥35,547 million (up 10.3% year-on-year), increasing in all segments. The accumulated order backlog is enhancing visibility of future sales and serves as a foundation supporting the achievement of the full-year sales forecast of ¥39,000 million (up 4.0% year-on-year).
Last updated: July 17, 2026