[Corporate Analysis] Ebara Corporation | Semiconductors are booming, but can the organization keep up? | Compressed 120-item audit | Fundamentals explanation

MB ファイルダウンロードについて ダウンロード What are Ebara Corporation's strengths?Ebara Corporation is a company that originally specialized in pumps.However, viewing Ebara today simply as a "pump company" would lead t ...

However, viewing Ebara today simply as a "pump company" would lead to a significant misunderstanding of its actual business.

In addition to water supply pumps, drainage equipment, waste treatment facilities, and large-scale machinery for LNG, it now develops dry vacuum pumps and CMP equipment used in semiconductor factories.

The most interesting part of this analysis was that while there is strong evidence for growth itself, the biggest issue is not the market or technology, but "organizational implementation." In the first half of 2026, the Precision and Electronic segment saw orders increase by 89.3% year-on-year, sales by 22.0%, and operating profit by 38.7%.

Semiconductors are no longer at the stage of "potentially growing in the future"; the numbers are already appearing in orders, sales, and profits.

On the other hand, at the Junnet factory in the U.S., problems occurred that the company itself described as "very basic machining errors and process management mistakes" during equipment upgrades and personnel reallocation.

Of the 3 billion yen downward revision in full-year operating profit, approximately 2 billion yen is attributed to this factory issue.

Ebara is not a company without management mechanisms.

In fact, 7 out of 10 directors are independent outside directors, and systems such as presidential succession planning and ROIC-linked compensation are quite thoroughly institutionalized.

That is precisely why the question this time is not "is there governance?" but rather, can these well-established mechanisms be operated with the same quality at sites around the world?

Ebara does not manufacture semiconductors themselves.

Its main products are dry vacuum pumps that create a vacuum state in semiconductor factories and CMP equipment that flattens wafer surfaces.

In company materials, both CMP equipment and dry vacuum pumps are listed as having the second-largest global market share.

Dry vacuum pumps have a track record of over 200,000 units cumulatively.

INT24_all_JP.pdf Going forward, there are multiple growth paths, including horizontal expansion not only to logic but also to memory, pumps, cooling/heating, and maintenance for data centers, and service revenue from existing equipment.

For this reason, I have determined that the company's growth potential is "large." However, "the market is growing" does not mean "Ebara will automatically grow." The company itself explains that the recent expansion in orders for Precision and Electronic is centered on an increase in the volume of existing products.

Higher value-added products and profit margin improvements are areas to be confirmed in the future.

162_q2_QA_jp(2).pdf There are pumps used in water and drainage facilities, environmental plants, energy equipment, and post-sale parts replacement, repairs, and operational support.

In the environmental business, there are long-term jobs that last 20 to 30 years, involving not just building facilities but also operation and maintenance.

INT24_all_JP.pdf Not every business needs to make a huge profit at the same time.

Semiconductors, infrastructure, environment, and energy have different economic and capital investment cycles.

That difference becomes the durability of the entire company.

Financial Durability 84 Cash and financing capacity are sufficient.

However, I want to confirm the FCF recovery after large-scale investments.

Capital Efficiency 80 The 2025 ROIC is 11.9%.

While the Precision and Electronics segment is high at 21.0%, the focus is on whether efficiency can be maintained after future large-scale investments.