FUJI ELECTRIC INDUSTRY CO. , LTD.
6654・Standard Market・Electric Appliances
Business
Fuji Electric Industry Co., Ltd. (Single Segment) is an electric control equipment specialist manufacturer founded in 1958, with its main bases at the Kusatsu Plant (Minami Kusatsu Factory) and Shinasahi Plant in Kusatsu City, Shiga Prefecture. The company operates four product groups: Control Switches (27.3% of sales), Connection Devices (45.4%), Indicator Lights & Displays (12.4%), and Electronic Application Equipment (13.9%), with its primary customer base centered on power companies and heavy electrical machinery manufacturers in the heavy electrical machinery market. In addition to the domestic market, the company has sales channels in overseas markets centered on Asia and the Middle East (overseas sales ratio of 9.8%), and is listed on the Standard Market of the Tokyo Stock Exchange. It is a standalone business entity with no affiliated companies or related parties, and over 90% of net sales consist of the manufacturing, processing, and sale of electric control equipment.
Business Model
Control Switches, terminal blocks, and other products are manufactured at the company's own plants, including the Kusatsu Works and Shinasahi Works, and delivered to users either through distributors/trading companies or via direct transactions utilizing WebEDI. The cost-of-sales ratio stands at 67.4% and the SG&A ratio at 26.0%, with the operating margin at 6.6% for FY2026 (ending March 2026). Capital expenditures and R&D expenses (¥157 million) are funded from internal resources, reflecting a financial discipline that keeps the interest-bearing debt ratio at a low level.
Company Strengths
Since its founding in 1958, the company has continued operations for over 70 years as a specialized manufacturer of electrical control equipment. It has obtained ISO9001 and ISO14001 certification at all sites across its four business fields—Control Switches, Connection Devices, Indicator Lights & Displays, and Electronic Application Equipment—and has a track record of supplying highly reliable products to the heavy electrical equipment market. It also has extensive development experience in specialized-application products such as switches and indicator lights for railway vehicles.
As of the end of FY2026, against total assets of ¥11,281 million, net assets stood at ¥10,441 million (equity ratio of approximately 92.6%), maintaining an extremely healthy financial structure. Liabilities amounted to only ¥839 million, with minimal interest-bearing debt, and operating cash flow was stably generated at ¥441 million. The company has explicitly stated a policy of keeping its interest-bearing debt ratio at or below 20% even during large-scale investments.
Connection Devices recorded sales of ¥1,713 million in FY2026 (up 6.4% year on year), accounting for 45.4% of total company sales as the largest product group. Surge absorber terminal blocks and general-purpose terminal blocks increased, and order intake also showed robust demand, rising 114.5% year on year with the order backlog up 128.7%. Progress in the next-generation evolution of power networks is underpinning demand for this product group.
ENVALITH's Perspective
Performance Trend
After moving sideways in the ¥3,700-3,900 million range over the past five fiscal years, revenue is entering an accelerating phase, with full-year forecast for FY2027 (ending January 2027) at ¥4,250 million (up 12.5% year on year). Cumulative first-quarter revenue of ¥916 million (up 2.0% year on year) secured revenue growth. Meanwhile, operating profit has continued to decline after peaking at ¥400 million in FY2024, falling to ¥302 million in FY2025 and ¥249 million in FY2026, and plunged further in the first quarter of FY2027 (ending January 2027) to ¥21 million (down 60.3% year on year) due to rising manufacturing costs from soaring material prices. As an external factor, expanding demand for power network infrastructure development is driving an increase in orders, but the structure in which persistently high raw material prices squeeze profits continues. Leading indicators have improved substantially, with orders received of ¥1,095 million (up 114.1% year on year) and order backlog of ¥1,306 million (up 113.3% year on year), raising expectations for a revenue recovery in the second half.
Growth Strategy
Aiming for a long-term sales target of ¥5,000 million through the development of three markets: heavy electrical equipment, railway, and overseas.
Against the backdrop of progress in next-generation power networks and wide-area interconnection grid development, the company is strengthening sales to the heavy electrical equipment sector, centered on Connection Devices such as surge absorber terminal blocks and connectors. Orders for Connection Devices in the first quarter increased 118.4% year on year, showing strong momentum.
The company is strengthening sales activities toward the railway and rolling stock industries, centered on Control Switches such as switches for railway vehicles. Orders for Control Switches in the first quarter increased significantly, up 128.4% year on year, suggesting that the capture of railway-related demand may be progressing.
The overseas sales ratio for the cumulative first quarter was 10.4% (¥95 million), with a breakdown of Asia 58.7%, Middle East 13.2%, and other regions 28.1%. This represented a slight decrease of 95.7% year on year, making the recovery and expansion of overseas sales a challenge. The company utilizes both channels of export via trading companies and direct exports.
Amid rising manufacturing costs due to soaring material prices squeezing profits, the company is promoting a review of selling prices. In the first quarter, despite an increase in net sales, gross profit decreased year on year, and progress on price pass-through will be key to achieving the full-year operating profit target (operating profit of ¥276 million).
Last updated: July 17, 2026