EIWA CORPORATION

Business Details

The Group operates in a single segment covering the sale (and, in some cases, manufacture and sale) of industrial measurement and control equipment, environmental measurement/analysis equipment, measuring and inspection equipment, and industrial machinery. Its main customers span the chemical, steel, shipbuilding, electric power, and construction/plant engineering industries. Leveraging a nationwide sales network, the company is an independent trading company that emphasizes issue-solving solution proposals and promotes high-value-added, "selling of value/services" (koto-uri)-centered sales focused on three priority themes: DX, GX, and social infrastructure development.

Recent Overview

Increased revenue and profit achieved in FY2026 (ending March 2026), but a decline in profit is forecast for the following year due to higher personnel expenses and other factors

In FY2026 (ending March 2026), the company achieved net sales of ¥48,846 million (up 3.6% year on year) and operating profit of ¥2,975 million (up 6.8% year on year), marking four consecutive years of increased revenue and profit. Growth was driven by high shipbuilding industry utilization rates, regular maintenance demand in the chemical and steel industries, and growth in environmental measurement equipment. On the other hand, operating cash flow turned negative to ¥199 million, largely due to a significant decrease in accounts payable (¥2,482 million). For FY2027 (ending March 2027), the company forecasts operating profit of ¥2,660 million (down 10.6% year on year) due to increased personnel expenses and expanded training investment associated with the introduction of a new personnel system. The annual dividend is expected to be maintained at ¥96.

Key Products

Growth Drivers

• Continued demand for various sensors, valves, and other equipment supported by high shipbuilding industry utilization rates and a high level of order backlog
• Capturing renewal demand associated with regular maintenance in the chemical and steel industries, as well as DX investment (equipment visualization, remote monitoring)
• Expanding demand for environmental measurement/analysis equipment and energy-saving-related equipment driven by environmental regulation compliance and GX promotion
• Demand for social infrastructure investment related to disaster prevention/mitigation and national resilience (specialty vehicles, road maintenance machinery)
• Improved profitability and deeper customer relationships through strengthened high-value-added sales centered on "selling of value/services" (koto-uri)
• Productivity improvement and strengthened mid- to long-term organizational foundation through human capital management promotion and DX investment

Risks

• Temporary decline in profit in FY2027 (ending March 2027) due to increased personnel expenses and expanded training investment associated with the introduction of a new personnel system (operating profit forecast to decline 10.6%)
• Supply chain disruption and deterioration of corporate capital expenditure sentiment due to expanding geopolitical risks and fluctuations in U.S. trade policy
• Continued impact on specialty vehicle sales from delayed truck chassis shipments and longer lead times in the body-fitting process
• Prolonged weak demand in the chemical and steel industries due to persistent oversupply amid China's expanding production capacity
• Operating cash flow turning negative (an outflow of ¥199 million in FY2026 (ending March 2026)) and challenges in managing accounts payable
• Prolonged construction delays due to rising prices and labor shortages, and sustained weak domestic demand