ENVALITH
寺崎電気産業株式会社 logo

TERASAKI ELECTRIC CO.,LTD.

6637・Standard Market・Electric Appliances

Official website
寺崎電気産業株式会社 logo
TERASAKI ELECTRIC CO.,LTD.6637

Business

Terasaki Electric, founded in 1923, is an electrical equipment specialist manufacturer built on two core pillars: system products such as Marine Power Distribution & Control Systems and engine monitoring control systems, and equipment products such as Low-Voltage Circuit Breakers (Equipment Products) (air, molded-case, and earth-leakage types). Its main customers are in the shipbuilding industry (LNG carriers, container ships, bulk carriers, etc.), with additional expansion into industrial applications for buildings, factories, railways, and plants. The company operates across three segments—Japan, Asia (Singapore, China, Malaysia), and Europe (UK)—with overseas sales accounting for approximately 55% of the total. Group-wide sales, including 12 consolidated subsidiaries, totaled ¥62,859 million in FY2026 (ending March 2026).

Business Model

System Products are built to order based on individual customer specifications, providing high-value-added power distribution and control systems for marine and industrial applications. Equipment Products (such as Low-Voltage Circuit Breakers) are manufactured on a planned basis to ensure stable supply. In addition, Engineering & Life Cycle Services (preventive maintenance, retrofitting, crew training, etc.) generate aftermarket revenue, and customer touchpoints are maintained at locations worldwide through the Global Service Network (GSN).

Company Strengths

The company possesses a certification infrastructure enabling it to manufacture and supply products compliant with the rules of major classification societies in Japan, the US, the UK, France, and other countries. It has built up a track record across all vessel types, including LNG carriers, container ships, and bulk carriers, and its system product order backlog remained at a high level of ¥69,742 million in FY2026 (ending March 2026).

The company has manufacturing and sales bases in Singapore, China, Malaysia, and the UK, with overseas sales accounting for approximately 55% of total sales. Asia segment sales expanded rapidly to ¥27,210 million in FY2026 (ending March 2026), up 22.6% year on year, and the company has already implemented global capacity expansion (overseas equipment enhancement).

The company has set medium-term targets of a consolidated operating margin of 8% or higher and an equity ratio of 55% or higher, and in FY2026 (ending March 2026) it achieved both, with an operating margin of 9.9% and an equity ratio of 68.1%. Against interest-bearing debt of ¥6,629 million, it held cash and cash equivalents of ¥13,929 million, underscoring a solid financial base.

ENVALITH's Perspective

In FY2026 (ending March 2026), the Asia segment led company-wide growth with sales up 22.6% and profit up 21.8%. However, net income attributable to owners of the parent decreased 5.9% year on year to ¥4,188 million. This was due to a temporary boost from factors such as the recording of deferred tax assets in the previous period, and underlying earning power appears to have been maintained. However, income taxes increased to ¥2,335 million (up ¥701 million year on year), and continued attention should be paid to trends in the effective tax rate.

Cash flow from operating activities decreased significantly to ¥1,170 million from ¥8,327 million in the previous period. The main causes were a ¥2,508 million increase in trade receivables and a ¥2,870 million increase in inventories, reflecting the expansion of working capital accompanying the increase in the order backlog. In addition, treasury stock acquisitions of ¥3,499 million weighed on financing cash flow, and cash and cash equivalents declined to ¥13,929 million (down ¥3,685 million year on year). The ratio of cash flow to interest-bearing debt worsened from 0.6 years to 5.7 years, making working capital management a key challenge.

The consolidated earnings forecast for FY2027 (ending March 2027) calls for sales of ¥69,520 million (up 10.6% year on year), but a decline in profit, with operating profit of ¥5,730 million (down 7.5%), ordinary profit of ¥5,830 million (down 10.5%), and net income of ¥3,760 million (down 10.2%). As external factors, the continued surge in raw material prices such as copper, an assumption of yen appreciation based on the assumed exchange rates (¥151 to the US dollar, ¥176 to the euro), and uncertainty over US trade policy are expected to pressure profit margins. In terms of market conditions, the shipbuilding industry's order backlog remains at a high level, and sales growth is expected to continue, but there is a risk that rising costs will erode profits.

Growth Strategy

Reliable conversion of shipbuilding order backlog into sales, together with active participation in green- and digital-related projects

Ensure the order backlog of ¥69,742 million at the end of FY2026 (ending March 2026) (up ¥10,325 million from the previous fiscal year-end) is reliably converted into sales. Strengthen production and delivery management for system products for LNG carriers, container ships, and bulk carriers, and expand sales primarily in the Asia segment.

Promote expanded sales of industrial system products for distributed energy applications, such as power generation plants and cogeneration systems, in Japan, and capture demand for environmentally conscious products such as shore power supply systems. Continue developing products for next-generation fuel vessels aimed at decarbonizing marine transport.

Respond to capital investment demand driven by increased electricity demand associated with expanding use of generative AI, and strengthen sales of digital-related products such as Industrial Power Distribution & Control Systems and onboard data collection devices. Actively capture domestic investment demand for labor-saving and digitalization initiatives.

Expand life cycle services such as preventive maintenance, after-sales service, and retrofit work for previously delivered products, strengthening the recurring revenue base. In the Europe segment, breaker replacement work for vessels is increasing, and the company aims to expand service revenue globally.

Achieve both highly transparent management and improved management agility. In FY2026 (ending March 2026), the annual dividend was ¥53 (up ¥13 year on year), and share buybacks of ¥3,499 million were conducted. For FY2027 (ending March 2027), an annual dividend of ¥56 (forecast) is planned, with a payout ratio of 18.3% expected.

Last updated: July 19, 2026