OKANO VALVE MFG.CO.LTD.
6492・Standard Market・Machinery
Business
Okano Valve Mfg. Co., Ltd., founded in 1926 and headquartered in Moji-ku, Kitakyushu City, is a specialized manufacturer of valves for power plants. In its core Valve manufacturing and sales segment, the company manufactures and sells Nuclear Valves and Valves for Specified Severe Accident Countermeasure Facilities and General Valves and Cast Steel Valves for power plants in Japan and overseas, while its Maintenance segment provides valve maintenance services centered on periodic inspections. Its major customers are domestic electric power companies, including Tokyo Electric Power Company Holdings, and it conducts sales activities mainly through Okano Shoji (an other affiliated company) as its distributor. The company is also expanding overseas into China, Vietnam, Singapore, Saudi Arabia and other countries, and is working to develop a new business in Equipment Inspection and Diagnostic Solutions (New Business) utilizing drones, robots and IoT.
Business Model
In the valve manufacturing segment, the company supplies high-value-added, made-to-order products for nuclear and thermal power plants, while the maintenance segment builds up recurring service revenue from periodic inspections, decommissioning-related work, and other services. Part of the manufacturing process is outsourced to the subsidiary Okano Craft, and sales are conducted through an agency model via Okano Shoji. As of the end of the fiscal year ended September 2025, the order backlog remained at a high level of ¥10,316 million, giving the business structure high earnings visibility.
Company Strengths
Since delivering BWR valves for Japan Atomic Power Company's Tsuruga Unit 1 in 1968, the company has accumulated a track record in manufacturing nuclear valves. It obtained the American Society of Mechanical Engineers (ASME) nuclear certification "N Stamp" in 2010 and certification from China's National Nuclear Safety Administration in 2009, establishing high technical credibility both domestically and internationally.
The order backlog as of the end of FY2025 (ending September 2025) reached ¥10,316 million, substantially exceeding annual net sales of ¥7,006 million. Multiple large-scale projects have accumulated, including valves for Specified Severe Accident Countermeasure Facilities at Kashiwazaki-Kariwa, Tokai No. 2, and Shimane, as well as work related to the decommissioning of Fukushima Daiichi, providing high visibility into medium-term performance.
As of the end of FY2025 (ending September 2025), the equity ratio stood at 82.5% and the current ratio at 506.2%, maintaining an extremely sound financial structure. Cash and cash equivalents reached ¥4,785 million, enabling the repayment of interest-bearing debt and capital expenditures to be fully covered by internal funds. Repayment of long-term borrowings is also proceeding steadily.
ENVALITH's Perspective
Performance Trend
Revenue has expanded steadily, from ¥5,850 million in FY2021 to ¥6,887 million in FY2022, ¥7,407 million in FY2023, and ¥8,169 million in FY2024, with the first half (6 months) of FY2026 (ending September 2026) alone recording ¥5,845 million. The full-year forecast of ¥10,000 million represents an expected increase of 42.7% year on year. The operating margin has improved sharply, from 6.2% in FY2021 to 14.5% in FY2024 and 30.6% in the first half of FY2026 (ending March 2026), driven mainly by an increase in high-value-added additional orders centered on nuclear-related projects and improved utilization rates for periodic inspection work. As an external factor, progress in the restart of nuclear power plants (such as the operation of Kashiwazaki-Kariwa Unit 6) has been the biggest catalyst for the business expansion. However, the company expects a substantial decline in the profit level in the second half compared with the first half, and achieving the full-year operating profit forecast of ¥1,950 million would require only ¥163 million to be recorded in the second half.
Growth Strategy
Pursuing growth on two axes: deepening the core nuclear-related business and expanding business scope through a new subsidiary
The company aims to further strengthen the profit base of its core business through expanded orders for valves for specified severe accident countermeasure facilities at Kashiwazaki-Kariwa, Shimane, Tokai No. 2, and other plants, as well as continued orders for periodic inspection work at Onagawa, Shimane, and Kashiwazaki-Kariwa, and work related to the decommissioning of Fukushima Daiichi. Progress exceeded plan in the first half of FY2026 (ending March 2026), and initiatives are proceeding smoothly.
Alterbooth Inc. was newly consolidated from the first half of FY2026 (ending March 2026). Goodwill of ¥838 million was recorded, and long-term borrowings of ¥1,000 million were raised to fund the acquisition. At present, the significance of this company's segment is considered limited, and making its earnings contribution more substantial remains a task for the future.
The company is also focusing on sales to non-nuclear power plants, such as the Nanao-Ota Thermal Power Station, aiming to reduce dependence on nuclear policy risk. It is also continuously promoting the diversification and expansion of overseas sales to China, Saudi Arabia, Vietnam, Singapore, and other countries.
Last updated: July 17, 2026