Obara Group Incorporated
6877・Standard Market・Electric Appliances
Business
OBARA GROUP is an industrial equipment manufacturer founded in 1958, operating three segments: Resistance Welding Gun equipment for automotive body welding (Welding Equipment Business), Polishing Machine (Surface Grinding Equipment) and Consumable Auxiliary Materials for silicon wafers and other applications (Surface Grinding Equipment Business), and Power Distribution Equipment for the electric power industry (Electrical Equipment Business). The group consists of the Company, 30 subsidiaries, and 1 affiliate, and is a truly global enterprise with manufacturing and sales bases in Japan, China, South Korea, ASEAN, the Americas, and Europe. Consolidated net sales for FY2025 (ending September 2025) were ¥61,682 million. The Company newly entered the Electrical Equipment Business in December 2024, and is building a third earnings pillar following the automotive and electronics businesses. Major customers include global automakers, semiconductor and electronic component manufacturers, and electric power companies.
Business Model
In each business segment, the company generates revenue through a two-tier structure: equipment and machinery (capital goods) linked to capital expenditure cycles, and consumables and auxiliary materials for which demand arises continuously in line with production volume. Consumables are less susceptible to economic fluctuations and contribute to earnings stability. Through manufacturing and sales subsidiaries located around the world, the company introduces products tailored to local needs and secures orders by following the global expansion of major customers. As long-term management targets, the company has set an equity ratio of 70% or higher and ROE of 8-10%, emphasizing a balance between financial soundness and profitability.
Company Strengths
Since its founding in 1958, the company has continuously manufactured and sold electrodes and welding guns for resistance welding, with major automakers worldwide among its customers. It has established manufacturing and sales subsidiaries in China, South Korea, ASEAN, the Americas, and Europe. In FY2025 (ended September 2025), sales of the Welding Equipment Business reached ¥34,019 million, and order intake rose 12.3% year on year to ¥36,477 million, reflecting continued solid order accumulation.
The Surface Grinding Equipment Business, centered on SpeedFam Co., Ltd., achieved sales of ¥22,917 million, operating profit of ¥4,210 million, and an operating margin of 18.4% in FY2025 (ended September 2025). In addition to equipment sales, ongoing orders for Consumable Auxiliary Materials underpinned profitability, and a recovery in demand for advanced semiconductor devices was also confirmed in 1Q FY2026 (ending March 2026).
As of the end of FY2025 (ended September 2025), the equity ratio stood at 71.8% (target: 70% or above) and ROE at 9.1% (target: 8-10%), achieving both financial soundness and profitability targets simultaneously. Despite carrying out ¥44,431 million in treasury stock repurchases, the company maintained net assets of ¥74,679 million, with liabilities amounting to only ¥29,150 million out of total assets of ¥103,830 million.
ENVALITH's Perspective
Performance Trend
Net sales grew for five consecutive fiscal years, from ¥45,475 million in FY2021 to ¥61,682 million in FY2025, and growth further accelerated in the first half of FY2026 (ending September 2026) to ¥36,067 million (up 27.9% year on year). The operating margin improved to 16.7% on a first-half basis (versus 14.6% in the same period of the previous year), tracking at a pace exceeding the full-year levels of the past five fiscal periods (in the 16–17% range). The main drivers were a sharp expansion in profit from the Polishing Machine (Surface Grinding Equipment) business (up 101.4% year on year) and the full contribution of the Electrical Equipment Business. Externally, a recovery in market conditions for leading-edge semiconductors and yen depreciation (assumed rate of ¥157 to the US dollar) served as tailwinds. The full-year forecast calls for net sales of ¥71,500 million (up 15.9% year on year) and operating profit of ¥11,480 million (up 18.4% year on year), with first-half progress rates of 50.4% for net sales and 52.6% for operating profit, indicating steady progress.
Growth Strategy
Pursuing sustainable growth through global expansion across three business segments, expansion of consumable sales, and development of next-generation products
Against the backdrop of continued firm automobile production activity across global regions, the company is promoting expanded sales of equipment and consumables. It is capturing demand for equipment renewal in the vehicle body assembly field driven by the redefinition of environmentally friendly vehicles, and continuing to develop and commercialize next-generation, high-value-added products such as high-speed, lightweight welding guns. Order intake for the first half of FY2026 (ending March 2026) was ¥21,396 million (up 21.1% year on year), and leading indicators remain favorable.
Against the backdrop of diversifying applications in advanced semiconductor devices such as AI and advanced logic, the company is promoting the development and introduction of highly efficient products that meet the need for higher-precision silicon wafers. In parallel, it is building a stable earnings base by expanding orders for Consumable Auxiliary Materials. Order intake for the first half of FY2026 (ending March 2026) showed a notable recovery, up 37.0% year on year.
Through Energy Components Holdings, which became a subsidiary in December 2024, the company is fully rolling out its Power Distribution Equipment business for the electric power industry. Starting in FY2026 (ending March 2026), a full 12 months will be recorded, leading to a full-scale contribution to sales and profit for the fiscal year. Through the promotion of sales of products that meet customer requirements, the order backlog reached ¥1,897 million, up 35.1% year on year. Improvement from the current operating margin of 12.5% is the next challenge.
In the first half of FY2026 (ending March 2026), the company conducted share buybacks totaling ¥5,506 million (up ¥2,310 million year on year), while maintaining an annual dividend of ¥150. Leveraging its strong financial base (equity ratio of 71.0%), the company continues a capital policy that executes M&A, capital expenditure, and shareholder returns in parallel.
Last updated: July 17, 2026