ENVALITH
メタウォーター株式会社 logo

METAWATER Co., Ltd.

9551・Prime Market・Electric Power & Gas

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メタウォーター株式会社 logo
METAWATER Co., Ltd.9551

Business

Metawater Co., Ltd. is a comprehensive water environment engineering company established in 2008 through the integration of NGK Corporation and Fuji Electric's water environment divisions. Domestically, the company handles the design, construction, and maintenance of mechanical equipment (Environmental Engineering Business) and electrical equipment (System Solutions Business) for water purification plants, sewage treatment plants, and resource recycling facilities, as well as direct operation of facilities (Operations Business). Overseas, the company operates in the reclaimed water and advanced treatment process markets through subsidiaries in North America (Aqua-Aerobic Systems, Wigen Companies, Schwing Bioset) and Europe (Rood Wit Blauw Water, E&P Anlagenbau). Its primary customers are government agencies (accounting for over 90% of order volume), and consolidated net sales for FY2026 (ending March 2026) reached ¥209,844 million.

Business Model

The business is centered on multi-year construction contracts spanning order intake through revenue recognition, and the order backlog at the end of FY2026 (ending March 2026) stood at ¥389,299 million (up 22.2% year on year), securing strong revenue visibility. In the Operations Business, stable recurring revenue is accumulated through long-term concession and PFI contracts. In the Overseas Business, the structure is designed to expand earnings not only through product and service sales by local subsidiaries but also through high-value-added process proposals leveraging group-wide synergies.

Company Strengths

Consolidated order backlog at the end of FY2026 (ending March 2026) stood at ¥389,299 million (up 22.2% year on year). Backlog increased across all segments, with Environmental Engineering at ¥118,449 million, System Solutions at ¥97,052 million, Operations Business at ¥118,120 million, and Overseas Business at ¥55,676 million, establishing a multi-year revenue recognition base.

The company possesses an integrated capability to provide mechanical equipment, electrical equipment, and operations for water purification plants, sewage treatment plants, and resource recycling facilities. It has signed and is operating multiple long-term PFI and concession contracts, including the Miyagi Prefecture integrated water supply-sewerage public-private partnership, the Yokohama City Kawai Water Purification Plant, the Osaka City sludge treatment facility, and the Ube City public sewerage western treatment district, with its accumulated track record serving as a competitive advantage in winning new projects.

The company has carried out a series of M&A transactions, including Aqua-Aerobic Systems (2016), Wigen Companies (2020), Rood Wit Blauw Water (2020), Schwing Bioset (April 2025), and E&P Anlagenbau (October 2025). In FY2026 (ending March 2026), Overseas Business sales reached ¥56,759 million (up 50.4% year on year), and the order backlog reached ¥55,676 million (up 30.0% year on year), with rapid expansion supported by an established local sales and technical network across the Americas and Europe.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved substantial increases in both revenue and profit across all metrics, with revenue of ¥209,844 million (+17.2% YoY), operating profit of ¥12,879 million (+21.2% YoY), and profit attributable to owners of parent of ¥9,136 million (+33.3% YoY). In response, the company significantly revised upward its FY2028 (ending March 2028) medium-term management plan targets: revenue from ¥200 billion to ¥245 billion, operating profit from ¥13.0 billion to ¥16.5 billion, and net income from ¥8.5 billion to ¥11.0 billion. Given the accumulated order backlog of ¥389,299 million, the likelihood of achieving the FY2027 (ending March 2027) forecast (revenue of ¥240,000 million, operating profit of ¥15,000 million) is judged to be high.

The System Solutions Business was the only segment to post a decline in operating profit in FY2026 (ending March 2026), at ¥2,625 million (-23.3% YoY), primarily due to increased R&D expenses and depreciation. Despite higher revenue, profitability declined in this segment. Additionally, consolidated selling, general and administrative expenses rose to ¥34,171 million (+21.7% YoY), outpacing the rate of revenue growth, resulting in only limited improvement in the operating profit margin, which stood at 6.1% (versus 5.9% in the previous period). With continued DX and human capital investment expected, cost control will be key to further improving profit margins.

Ordinary profit for FY2026 (ending March 2026) included a foreign exchange gain of ¥621 million resulting from yen depreciation, an external factor that boosted ordinary profit. Meanwhile, cash flow from investing activities expanded significantly to ¥-17,027 million (versus ¥-4,094 million in the previous period), and the cash and cash equivalents balance at period-end declined to ¥26,736 million (versus ¥35,683 million in the previous period). The company continues to pursue an aggressive investment strategy, including the acquisition of Schwing Bioset (¥2,783 million), acquisition of investment securities (¥6,428 million), and a tender offer for Suido Kiko Kaisha, Ltd. (making it an equity-method affiliate with a 34.8% voting rights stake). Continued attention should be paid to the resulting changes in financial balance.

Growth Strategy

Significantly revised Medium-Term Management Plan 2027 upward, driving growth across the four business segments and expanding overseas M&A and public-private partnerships

The company is now expected to significantly exceed its original targets (net sales of ¥200.0 billion, operating profit of ¥13.0 billion), and has revised its FY2028 (ending March 2028) targets to net sales of ¥245.0 billion, operating profit of ¥16.5 billion, net income of ¥11.0 billion, and ROE of 11% or higher. The accumulation of the order backlog underpins sales contributions from the next fiscal year onward.

Schwing Bioset, Inc. was newly consolidated in April 2025, securing a product and sales network foundation in the U.S. sludge treatment market. The company is promoting synergy creation among its North American subsidiaries, and overseas business net sales expanded rapidly to ¥56,759 million in FY2026 (ending March 2026) (up 50.4% year on year). The order backlog of ¥55,676 million (up 30.0% year on year) supports sales in the coming fiscal years.

Against the backdrop of the expanded introduction of "Water PPP" based on the Cabinet Office's PPP/PFI Promotion Action Plan, the company is promoting the acquisition of new projects in the Operations Business and Environmental Engineering Business. The order backlog of the Operations Business increased to ¥118,120 million (up 14.7% year on year), advancing the strengthening of a long-term stable earnings base.

As a key initiative of Medium-Term Management Plan 2027, the company is promoting human capital investment and DX investment. It is expanding sales of WBC (Water Business Cloud), reforming engineering methods through ICT utilization, and responding to demand for monitoring system migration. J-ESOP (Employee Stock Ownership Trust) was introduced in February 2026 to strengthen employee incentives.

The company conducted a tender offer for Suido Kiko Kaisha, Ltd. from February to March 2026, acquiring 34.8% of its total issued shares to make it an equity-method affiliate. This aims to strengthen business collaboration in the manufacturing and sales of water treatment machinery and equipment.

Last updated: July 19, 2026