SUKEGAWA ELECTRIC CO., LTD.
7711・Standard Market・Precision Instruments
Business
Sukegawa Electric Co., Ltd. was founded in 1949 and is headquartered in Takahagi City, Ibaraki Prefecture, as a manufacturer of electrical and precision machinery. Centered on a product lineup related to "heat and measurement," including Sheathed Thermocouples, Sheath Heaters, and electromagnetic pumps, the company operates through two segments: Energy-related (temperature control and Testing & Research Equipment for nuclear power and nuclear fusion applications) and Industrial Systems-related (for manufacturing equipment used in semiconductors, FPDs, automobiles, steel, etc.). Its major customers include research institutions and energy companies such as the National Institutes for Quantum Science and Technology and Hitachi GE Nuclear Energy, as well as industrial equipment manufacturers. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company adopts a build-to-order production system, designing, manufacturing, and selling advanced "heat and measurement" products tailored to customer specifications. In the Energy-related segment, revenue is secured through large-scale projects such as Testing & Research Equipment for nuclear power and nuclear fusion applications, while in the Industrial Systems-related segment, revenue is generated by combining mass-produced items such as Sheathed Thermocouples and Sheath Heaters. The operating margin for FY2025 (ending September 2025) reached 21.3%, with improved production efficiency through optimized staffing and multi-skilled workforce development contributing to the margin improvement.
Company Strengths
Revenue increased approximately 48% over four fiscal years, from ¥3,698 million in FY2021 to ¥5,468 million in FY2025. Operating profit expanded approximately 4-fold over the same period, from ¥293 million to ¥1,165 million. The operating margin in FY2025 reached 21.3%, providing numerical support for continued profitability improvement.
In FY2025, orders received in the Energy-related segment expanded sharply to ¥4,148 million (up 187.2% year on year), with order backlog reaching ¥3,553 million (up 164.2% year on year). The order backlog equivalent to roughly 8 months of revenue has accumulated, securing medium-term visibility for sales.
Total net assets at the end of FY2025 stood at ¥4,890 million, with the equity ratio improving to 64.8% (up from 59.9% in the prior fiscal year). Total liabilities decreased by ¥163 million year on year to ¥2,656 million, while operating cash flow reached ¥826 million (up 308.2% year on year), indicating strong cash generation capability. A financial structure close to debt-free supports business continuity.
ENVALITH's Perspective
Performance Trend
In the interim period of FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥3,108 million (up 5.0% year on year), operating profit was ¥784 million (up 12.1%), ordinary profit was ¥791 million (up 12.2%), and net income for the interim period was ¥561 million (up 13.2%). Gross profit margin improved to 39.0% (from 37.4% in the same interim period of the previous year). Energy-related led growth with a 34.1% increase, while Industrial Systems-related declined 19.9%, indicating a divergence between segments. Progress toward the full-year forecast (net sales of ¥6,070 million, up 11.0% year on year; operating profit of ¥1,280 million, up 9.9%) was solid, with interim progress rates of 51.2% for net sales and 61.3% for operating profit. As an external factor, the restart of nuclear power plants and supportive government policy have boosted performance. On the financial side, total assets expanded to ¥8,802 million (up 16.6% from the previous fiscal year-end), and net assets grew to ¥5,429 million (up 11.0%).
Growth Strategy
Capturing policy tailwinds in nuclear power and fusion while pursuing sustainable growth through Industrial Systems-related recovery and multi-skilled workforce development
Promoting expansion of orders for products related to nuclear power plant restarts and nuclear/fusion products for research institutions. The order backlog of ¥3,841 million (123.0% year-on-year) as of the interim period of FY2026 (ending September 2026) secures sales for the second half and beyond, capturing continuous demand related to next-generation innovative reactors and fusion testing and research.
Capturing the shift toward an increasing trend in products for semiconductor manufacturing equipment (Sheathed Thermocouple and Sheath Heater), aiming to convert the order backlog of ¥1,577 million (159.1% year-on-year) into second-half sales. Also focusing on expanding orders for Electromagnetic Pump for Aluminum Hot Water Supply and Casting. Recovery in automotive and environment-related areas remains a challenge.
To respond to the rapid expansion of the Energy-related Business, promoting optimized staffing and multi-skilling of workers to achieve flexible expansion of production capacity. The gross profit margin of 39.0% for the interim period of FY2026 (ending September 2026) (improved from 37.4% in the same interim period of the previous year) partially reflects the effect of improved production efficiency.
The annual dividend forecast for FY2026 (ending September 2026) is ¥52 per share (a 30.0% increase from ¥40 in the previous fiscal year). An interim dividend of ¥26 (compared to ¥18 in the same interim period of the previous year) has already been implemented. The company continues its policy of increasing dividends in line with business expansion, with a payout ratio of 31.8% against the forecasted earnings per share of ¥163.74.
Last updated: July 17, 2026