IWATANI CORPORATION
8088・Prime Market・Wholesale Trade
Business
Iwatani Corporation is a general gas trading company founded in 1930, with its core business being Japan's only nationwide LP gas operator (approximately 300 locations nationwide) with an integrated system from LP gas import to retail. It also operates the Industrial Gas & Machinery Business, the Materials Business, and other businesses including food and finance. With 100 consolidated subsidiaries and 65 affiliated companies, net sales for FY2026 (ending March 2026) were ¥908,522 million. The company holds a 100% domestic share of liquid hydrogen and approximately 70% of hydrogen overall including compressed hydrogen, and as "Iwatani, the Hydrogen Company," it positions the realization of a hydrogen energy society as its medium- to long-term growth axis. Its major customers range widely from household and factory energy consumers to the electronic components, optical fiber, medical, and construction industries.
Business Model
In LP Gas, the company has built an integrated system spanning direct imports from overseas, domestic transportation, and retail sales, with recurring demand from households and factories—where switching costs are high—serving as its earnings base. In the industrial gas business, stable earnings are secured through long-term supply contracts backed by proprietary manufacturing and supply equipment. The Materials Business leverages trading company functions spanning resource procurement, processing, and sales. The structure simultaneously pursues scale expansion and profitability improvement by combining customer base expansion through M&A with capacity enhancement through capital investment.
Company Strengths
Began handling hydrogen in 1941, and holds a 100% domestic share in liquid hydrogen and approximately 70% across hydrogen overall including compressed hydrogen. Established the Iwatani Hydrogen Technology Research Institute, accumulating proprietary technology ranging from material evaluation of liquid hydrogen and ultra-high-pressure compressed hydrogen to reducing hydrogen station construction costs. Has a track record of pioneering achievements, including Japan's first demonstration hydrogen supply station in 2002 and completion of Japan's first commercial hydrogen station in 2014.
As Japan's only nationwide LP gas operator handling import, domestic transportation, and retail of LP gas in an integrated manner, the company holds approximately 300 locations nationwide. Comprehensive Energy Business sales revenue for FY2026 (ending March 2026) was ¥367,732 million. The company continues to promote expansion of direct-sales customer numbers through M&A and logistics rationalization, and has achieved improved profitability in the LP gas retail segment in FY2026 (ending March 2026).
Holds a broad lineup of gases including Air Separation Gas (oxygen, nitrogen, argon), helium, carbon dioxide gas, semiconductor material gases, and medical gases. Industrial Gas & Machinery Business sales revenue for FY2026 (ending March 2026) was ¥288,730 million. Sales volume of Air Separation Gas for the electronic components and optical fiber industries has trended steadily, and the company has a track record of expansion into high-value-added areas, including operation of a deuterium plant and development of semiconductor material gases.
ENVALITH's Perspective
Performance Trend
Revenue maintained an increasing trend, reaching ¥908,522 million in FY2026 (ending March 2026), up 2.9% year on year. This was driven by the Industrial Gas & Machinery Business (¥288,730 million, up 6.4% year on year) and the Materials Business (¥218,377 million, up 8.3% year on year), while the Comprehensive Energy Business saw revenue decline to ¥367,732 million (down 2.9% year on year) due to low LP gas import prices. Operating profit fell to ¥38,318 million (down 17.1% year on year), marking the third consecutive year of profit decline, mainly due to the LP gas market environment (a negative impact of ¥5.9 billion year on year), the softening helium market, and higher SG&A expenses. Ordinary profit came to ¥55,220 million (down 10.2% year on year), supported by an increase in equity-method investment income (¥12,198 million). Profit attributable to owners of parent increased to ¥47,666 million (up 17.8% year on year), reflecting the recording of a gain on sale of fixed assets (¥11,993 million). For FY2027 (ending March 2027), the company forecasts revenue of ¥960,000 million (up 5.7%) and operating profit of ¥48,800 million (up 27.4%), anticipating a recovery in its core business.
Growth Strategy
Aiming for PLAN27 operating profit of ¥65,000 million through hydrogen, decarbonization, M&A, critical minerals, and overseas expansion
Japan Hydrogen Energy Co., Ltd. concluded a shipbuilding contract with Kawasaki Heavy Industries for the world's largest 40,000 m³ liquefied hydrogen carrier. Conducted on-site demonstration tests of fuel cell-equipped medium-sized hydraulic excavators at construction sites, promoting the expansion of hydrogen use at construction sites and other locations. In the next fiscal year, priority measures will focus on strengthening hydrogen and ammonia sales and commercializing a low-carbon hydrogen supply chain.
Continuing to expand the number of LP gas direct-sale customers through M&A and improving profitability through logistics rationalization. In FY2026 (ending March 2026), the LP gas retail segment achieved increased sales volume and improved profitability. In the next fiscal year, operating profit for the Comprehensive Energy Business is planned to significantly improve to ¥23.1 billion (up 53.2% from ¥15.0 billion in the current fiscal year). Also promoting the development of green LP gas and sales of carbon offset gas.
Started mineral sands production at Coburn Resources in Australia. Advancing production and shipment preparations for green titanium ore at Nordic Mining in Norway, with sales expected to begin in the next fiscal year. Invested in Carester (France) to promote the construction of a rare earth refining plant. Next fiscal year's Materials Business net sales are planned at ¥257.3 billion (up 17.8% from the current fiscal year).
Utilizing renewable energy-derived hydrogen produced at the Fukushima Hydrogen Energy Research Field for "Hydro-Cut," a mixed hydrogen-ethylene cutting gas, supplying it for decommissioning work on the grounds of the Fukushima Daiichi Nuclear Power Plant. Contributing to the promotion of local production and consumption of hydrogen and decarbonization at the manufacturing process stage. Continuing to promote fuel conversion and carbon offset gas sales.
The next fiscal year's capital expenditure plan for the Industrial Gas & Machinery Business is significantly expanded to ¥31.0 billion (up 41% from ¥22.0 billion in the current fiscal year). Strengthening the expansion of sales of Air Separation Gas for the optical fiber and electronic components industries, responding to rising procurement and logistics costs, and enhancing the stable supply system. Next fiscal year's operating profit is planned at ¥18.5 billion (up 20.0% from ¥15.4 billion in the current fiscal year).
Last updated: July 19, 2026