Ebara Raises Order Forecast 4% After Operating Profit Grows 20.2% in Nine Months
Key Facts
Ebara announced results on November 13 for the first nine months of its fiscal year ending in December 2026, reporting sales revenue of 745.937 billion yen, up 12.4% year over year. Operating profit rose 20.2% to 83.597 billion yen, while profit attributable to owners of the parent company climbed 60% to 71.476 billion yen. Diluted earnings per share were 156.57 yen, compared with 96.67 yen in the same period a year earlier, while basic earnings per share reached 156.67 yen, versus 96.76 yen. The company said orders, revenue, operating profit and profit for the period attributable to its owners all reached record levels for a third quarter. The results reflect strong business growth from January 1 to September 30, with a clear variation in the segments' contributions.
Orders rose 43.9% to 979.0 billion yen in the nine months, compared with 680.1 billion yen a year earlier, outpacing revenue growth. Ebara linked the trend to higher expected demand in the precision machinery and electronics segment, where it raised its full-year total order forecast. The segment posted revenue of 293.569 billion yen, up 31.5% from the same period. The company said AI demand had boosted operations at customers' factories and their investment in expanding production, supporting the segment's performance. It also expects its business to remain resilient, driven by long-term semiconductor demand and stable infrastructure-related demand.
Segment performance diverged sharply, with the energy segment reporting revenue of 144.867 billion yen, down 9.1% year over year. Segment profit fell 91.7% to 1.411 billion yen during the period, contrasting with strong expansion in precision machinery and electronics. The company cut its full-year operating profit forecast for the energy segment to 13 billion yen from 18 billion yen. It attributed the revision to rising instability in the Middle East and its expectation that sales of repair services, technical guidance and spare parts in the second half would fall below levels based on typical performance. By contrast, Ebara expects the semiconductor manufacturing equipment market to grow by at least 20% in 2026, with investment continuing in logic, foundry and memory segments.
Ebara raised its order forecast for the fiscal year to 1.295 trillion yen, up 4% from its previous forecast of 1.245 trillion yen, citing strong expected demand in precision machinery and electronics. The company left its annual revenue forecast at 1.053 trillion yen and operating profit at 125 billion yen unchanged. It also made no changes to its annual basic earnings per share forecast of 218.10 yen or its previously announced earnings forecasts. The November revision therefore raised its estimate for order inflows, while its overall revenue and operating profit targets remained unchanged. Among non-operating factors, the company said it recorded a pre-tax profit of 20.6 billion yen from the sale of shares in Watering, an equity-method associate through the first quarter.
The company announced an additional share buyback program of up to 1.7 million shares, with a total value not exceeding 5 billion yen, from November 16 to December 31, 2026. It thereby raised its annual buyback cap from 10 billion yen to 15 billion yen. In trading before the results announcement, Ebara closed at 3,647 yen on November 12. The stock then ended the November 13 session at 3,561 yen, down 86 yen, or 2.36%, from the previous close, with 3,082,800 shares traded. The announced buyback period begins on November 16, while the financial forecasts cover the fiscal year ending in December 2026.