JEOL Ltd.

Business Details

Comprising three categories: electron optics instruments (transmission electron microscopes, electron probe microanalyzers, etc.), analytical instruments (nuclear magnetic resonance devices, mass spectrometers, etc.), and metrology/inspection instruments (scanning electron microscopes, focused ion beam processing/observation systems, etc.). Main customers include universities, research institutions, semiconductor manufacturers, and next-generation battery manufacturers, making this the largest segment, accounting for approximately 65% of the group's total revenue of ¥179,353 million. The business operates globally through a network of domestic and overseas sales subsidiaries.

Recent Overview

While revenue declined 6.8% year-on-year due to the impact of U.S. science and technology budget cuts, demand centered on electron microscopes remained solid.

Revenue for FY2026 (ending March 2026) was ¥116,295 million (down 6.8% year-on-year), and segment profit was ¥13,069 million (down 12.9% year-on-year). Although there is uncertainty about the outlook due to science and technology budget cuts by the U.S. government, demand centered on electron microscopes remained solid. By region, sales to China declined significantly from ¥44,785 million in the prior period to ¥35,609 million, while sales to Japan were roughly flat. Capital expenditure expanded significantly, with the increase in tangible and intangible fixed assets reaching ¥15,493 million (versus ¥3,750 million in the prior period), reflecting aggressive capacity expansion investment.

Key Products

Growth Drivers

• Continued solid demand centered on electron microscopes (for universities, research institutions, and semiconductor manufacturers)
• Continued demand related to semiconductor manufacturing processes and next-generation battery R&D
• Continued strategic growth investment in the semiconductor and life science fields under the new medium-term management plan "Evolving Growth 2.0 -A New Horizon-" (FY2025-FY2029)
• Strengthening of the technology and product foundation related to NMR through the consolidation of Japan Superconductor Technology Inc. as a subsidiary
• Strengthening of the field-specific solution provision foundation and enhancement of added value through the "YOKOGUSHI 2.0" strategy
• Expansion of production and development capacity through large-scale capital investment (increase in fixed assets of ¥15,493 million in the current period)

Risks

• Continued uncertainty due to reductions in U.S. government science and technology-related budgets
• Significant decline in sales to China (from ¥44,785 million in the prior period to ¥35,609 million in the current period) and demand impact from China's economic stagnation and localization policy
• Uncertainty in the global economy due to geopolitical risks (prolonged situations in Ukraine and the Middle East)
• Foreign exchange risk (impact of yen appreciation on the yen-converted value of overseas sales)
• Risk of rising export costs and curtailed customer capital expenditure due to fluctuations in U.S. tariff policy

Business Details

Manufactures and sells electron beam lithography systems (Single-Beam Mask Writer, Spot-Beam Electron Beam Lithography System, Multi-Beam Mask Writer), Electron Beam Metal 3D Printers, RF power supplies, and other products. Main customers are in the semiconductor mask manufacturing and advanced materials processing fields. In FY2026 (ending March 2026), revenue was ¥48,131 million, down 14.8% year-on-year, but the segment profit margin remained at a high level of 40.2%.

Recent Overview

Revenue declined 14.8% year-on-year to ¥48,131 million, impacted by delayed recovery in demand for Multi-Beam systems

In the Industrial Equipment segment for FY2026 (ending March 2026), orders and sales of the Single-Beam Mask Writer and Spot-Beam Electron Beam Lithography System remained solid, while the Multi-Beam Mask Writer saw demand pickup take time as key customers' full-fledged recovery in capital expenditure was delayed relative to expectations. Of total sales to China of ¥35,609 million (segment-wide), the Industrial Equipment portion was ¥16,470 million, down from ¥19,808 million in the prior period. The Industrial Equipment segment recorded an impairment loss of ¥232 million. Further demand increase is expected for the Spot-Beam system against the backdrop of DFB laser demand for AI data centers.

Key Products

Growth Drivers

• Spot-Beam Electron Beam Lithography System: Expected expansion of demand for mass production processes driven by increased performance and diversification of DFB lasers used in optical transceivers for AI data centers
• Continued solid trend in orders and sales of the Single-Beam Mask Writer
• Medium-to-long-term demand pickup driven by signs of market recovery for the Multi-Beam Mask Writer
• Medium-to-long-term expansion of demand for mask lithography systems accompanying the advancement of semiconductor manufacturing processes
• Continued strategic growth investment in the semiconductor field under the medium-term management plan "Evolving Growth 2.0 -A New Horizon-" (FY2025-FY2029)
• New market development through the Electron Beam Metal 3D Printer

Risks

• Risk of delayed market recovery for the Multi-Beam Mask Writer (key customers' capital expenditure recovery is delayed relative to expectations, and demand pickup continues to take time)
• Risk of dependence on capital expenditure cycles due to fluctuations in semiconductor market conditions
• Risk of impact on semiconductor-related customers from strengthened U.S. tariff policy and export regulations
• Risk of demand fluctuation due to China's semiconductor localization policy and geopolitical risk (sales of industrial equipment to China declined year-on-year)
• Continued uncertainty due to reductions in U.S. government science and technology-related budgets
• Risk of declining profitability of certain assets, as reflected in the impairment loss (¥232 million) recorded in the Industrial Equipment segment

Business Details

Focused on automated analyzers (automated biochemical analyzers) as the main product, manufacturing and selling to medical institutions and clinical testing institutions both domestically and overseas. Revenue for FY2026 (ending March 2026) was ¥14,926 million (down 3.2% year-on-year), and segment profit declined significantly to ¥64 million. Effective April 1, 2026, the business was transferred to a newly established subsidiary through a company split (simplified absorption-type split), and all shares of that subsidiary were transferred to Sysmex Corporation. JEOL Group has already withdrawn from this business.

Recent Overview

Business transfer to Sysmex completed in April 2026, separating the business from JEOL Group

Revenue for FY2026 (ending March 2026) was ¥14,926 million (down 3.2% year-on-year), a modest decline, but segment profit deteriorated significantly to ¥64 million (from ¥662 million in the prior period), with the profit margin falling to 0.4%. While orders and sales centered on automated biochemical analyzers are reported to have remained solid, profitability declined markedly. Effective April 1, 2026, the business was transferred to a newly established subsidiary (renamed Sysmex BioMajesty Corporation) through a company split (simplified absorption-type split), and all shares were transferred to Sysmex Corporation. The transfer price and gain/loss on transfer are still being calculated and remain undetermined.

Key Products

Growth Drivers

• Stable replacement and new demand for automated biochemical analyzers at domestic medical institutions (as performance prior to the business transfer)
• Business expansion and synergy creation under the Sysmex Group (under the new structure following the transfer)

Risks

• Following the completion of the business transfer to Sysmex effective April 1, 2026, this segment has ceased to exist within the JEOL Group (will not be included in consolidated results from FY2027 (ending March 2027) onward)
• The transfer price and gain/loss on transfer are currently undetermined, and once finalized, could impact JEOL's financial statements
• Segment profit for FY2026 (ending March 2026) deteriorated significantly to ¥64 million (profit margin of 0.4%) year-on-year, reflecting markedly reduced profitability prior to the business transfer
• Sluggish orders and sales in overseas markets due to China's localization policy (China sales of ¥642 million, up from ¥330 million in the prior period but still at a low level)
• Foreign exchange risk (overseas sales including ¥2,354 million in North/Central/South America and ¥642 million in China)