SHIZUKI ELECTRIC COMPANY INC.
6994・Standard Market・Electric Appliances
Business
Shizuki Electric Co., Ltd. operates in two segments: the Capacitor Module business centered on film capacitors, and the Power Equipment Systems business leveraging energy-saving and power quality improvement technologies. In the capacitor business, domestic subsidiaries (Akita, Kyushu, and Okayama Shizuki) manufacture products, which are supplied globally through overseas bases in the United States, China, and Thailand. The Power Equipment Systems business manufactures and sells power factor correction equipment such as phase advance capacitors and series reactors, with major customers in industrial equipment, xEV, data centers, and renewable energy-related fields. Consolidated net sales for FY2025 reached ¥27,995 million, a record high.
Business Model
In the Capacitor Module segment (approximately 64% of sales composition), the company adopts a vertically integrated model in which domestic and overseas manufacturing subsidiaries produce goods that the company purchases and sells. The Power Equipment Systems segment (approximately 36% of sales composition) drives overall company profit through a high-profitability structure (segment profit margin of approximately 30%). By fusing the capacitor technology and power electronics technology cultivated across both businesses, the company is advancing a shift from supplying standalone devices to providing systems and solutions, thereby aiming to enhance added value.
Company Strengths
The company's in-house possession of both capacitor technology, a core device in electric power systems, and power electronics equipment technology to utilize it, constitutes a unique advantage that competitors cannot easily replicate in a short period. Under Phase III of the Medium-Term Management Plan, the company is promoting the creation of solutions through the fusion of these technologies, advancing a shift from supplying standalone devices to providing systems.
The Power Equipment Systems segment recorded segment profit of ¥3,088 million (a profit margin of approximately 30%) against sales of ¥10,197 million in FY2025, generating profit that greatly exceeds the company-wide operating profit of ¥2,529 million, making it a highly profitable business. Backed by expanding domestic capital expenditure demand, the segment achieved a 10.6% year-on-year increase in sales, driving company-wide earnings.
The company has manufacturing subsidiaries in Akita, Kyushu, and Okayama within Japan, and operates three overseas bases in the United States (American Shizuki), China (Shanghai trading subsidiary), and Thailand (Shizuki Electric (Thailand)). Starting with the establishment of the U.S. subsidiary in 1973, the global supply system built over more than 50 years forms a competitive advantage both in terms of responsiveness to customers' regional needs and diversification of procurement risk.
ENVALITH's Perspective
Performance Trend
Revenue increased for four consecutive fiscal years, from ¥23,875 million in FY2022 to ¥27,995 million in FY2026, marking a new record high. Operating profit recovered sharply from a trough of ¥937 million in FY2023, reaching a record ¥2,529 million in FY2026 (up 27.1% year on year). Gross margin improved from 25.7% to 28.1%, and a decrease in the absolute amount of cost of sales year on year drove the profit expansion. Ordinary profit rose substantially to ¥2,961 million (up 64.8% year on year), which was also aided by a large decrease in non-operating expenses (from ¥707 million to ¥411 million), mainly due to the disappearance of ¥164 million in compensation payments and ¥36 million in provision for product compensation reserves recorded in the previous fiscal year. Ordinary profit is forecast to decline in the following fiscal year, and external factors such as U.S. tariffs and foreign exchange rate fluctuation risks are heightening uncertainty over business performance.
Growth Strategy
Establishing a solutions business through the fusion of capacitor and power electronics technologies, and enhancing corporate value
Against a backdrop of rising domestic capital investment demand (related to AI, data centers, and semiconductor manufacturing), the company is expanding sales of power factor correction equipment such as Phase Advance Capacitors and Series Reactors. In FY2026 (ending March 2026), sales rose 10.6% year on year to ¥10,196 million, and continued growth is expected in the following fiscal year.
The company continues to expand sales of domestic capacitors for industrial equipment, mainly in the power electronics market for inverters, converters, and similar applications. In FY2026 (ending March 2026), strong domestic sales partially offset the decline in sales for xEV applications. The company is also pursuing productivity improvements and price optimization in parallel to strengthen cost competitiveness.
For xEV capacitors, which saw a decline in sales in FY2026 (ending March 2026) due to the peaking out of models currently adopted by the company, the company aims to achieve a future recovery by securing adoption in next-generation models. Reflection in the next capital investment plan is expected.
In FY2026 (ending March 2026), buildings and structures increased by ¥1,951 million (including transfers from construction in progress), and expenditures for acquisition of property, plant and equipment totaled ¥1,884 million. The company is systematically implementing capital investment aimed at continuing productivity improvements and keeping pace with market expansion.
The annual dividend for FY2026 (ending March 2026) was ¥24 (a 71% increase from ¥14 in the previous fiscal year), with a payout ratio of 30.4%. For FY2027 (ending March 2026), the company forecasts an annual dividend of ¥24 and a payout ratio of 30.3%, continuing its stable profit distribution policy based on consolidated results.
Last updated: July 19, 2026