Osaki Electric Co., Ltd.

Business Details

Osaki Electric Co., Ltd.'s core segment. Centered on the manufacturing and sale of watt-hour meters (Smart Meters), the segment also offers instrument transformers, Energy Management System (GX Service), Smart Lock, and Switchboards & Distribution Boards. Major customers are electric power companies, led by Kansai Transmission and Distribution Corporation, Inc. (accounting for 17.6% of segment sales). In addition to the parent company, group companies including Enegate Co., Ltd., Osaki Electric Systems Co., Ltd., Iwate Osaki Electric Co., Ltd., Osaki Platec Co., Ltd., and Osaki Datatec Co., Ltd. conduct the business. This is the largest segment, accounting for approximately 57% of consolidated sales.

Recent Overview

Increased sales and profit in cumulative Q3 driven by start of 2nd Gen Smart Meter shipments; steady full-year progress

In the cumulative nine months of FY2026 (ending March 2026) Q3 (April-December 2025), sales increased 5.7% year on year to ¥41,838 million, and operating profit increased 8.4% year on year to ¥2,926 million. In addition to reliably capturing final demand for current Smart Meters ahead of the full-scale rollout of 2nd Gen Smart Meters from Q4 of FY2025, shipments of 2nd Gen Smart Meters began as planned, driving the increase in sales. Although operating profit was affected by increased depreciation expenses associated with the start of 2nd Gen Smart Meter production, the company secured a profit increase through higher sales in the Smart Meter business and improved profitability in the switchboard business.

Key Products

Growth Drivers

• Creation of new demand from the full-scale rollout of 2nd Gen Smart Meters starting in FY2026 (ending March 2026)
• Expansion of the solutions business driven by strong meter sales to customers other than electric power companies
• Expanded adoption of Smart Lock in the rental housing market and corporate offices
• New customer development in other industries for the Energy Management System (GX Service)
• Improved profitability in the switchboard business

Risks

• Profit pressure from increased depreciation and personnel expenses associated with the start of 2nd Gen Smart Meter production
• Demand fluctuation risk during the transition period from current Smart Meters to 2nd Gen
• Decline in operating profit margin due to changes in product mix and increased SG&A expenses (profit declined 10.9% year on year in FY2025, ended March 2025)
• Customer concentration risk due to high dependence on sales to electric power companies (Kansai Transmission and Distribution Corporation alone accounts for 17.6% of sales)
• Uncertainty in order trends, as indicated by a 6.9% year-on-year decline in orders received (FY2025, ended March 2025)