Azbil Corporation Overview
Azbil is Japan's leading specialist in building and industrial automation. It sells measurement and control technology under its "human-centered automation" philosophy. It is the domestic market leader in building automation (BA), covering HVAC control, building management systems and energy services for large commercial buildings, data centres, hospitals and factories, including semiconductor fabs and their cleanrooms. Its Advanced Automation (AA) business supplies process instrumentation, control valves, controllers and MEMS-based sensors. Some of those MEMS products sit directly inside semiconductor manufacturing equipment: sapphire capacitance diaphragm vacuum gauges, mass flow controllers and micro-flow meters. Its Life Automation (LA) business makes gas and water meters and lifeline services. About 82% of revenue is earned in Japan. A large installed base generates recurring service revenue, which keeps margins high: FY2025 operating margin was 15.8% and the equity ratio was 76.1%. Since selling its Spanish pharmaceutical-equipment subsidiary in 2024, Azbil has focused on higher-margin automation and on growing in Southeast Asia, North America and China. Its FY2030 targets are ¥420 billion revenue and a 15.5% margin.
What the company does. Azbil designs, manufactures, engineers, installs and maintains automation systems and devices that measure and control temperature, humidity, pressure, flow, combustion and energy. It works through three reporting segments:
Building Automation (BA): BA held 52% of FY2025 sales. It supplies building management systems (BMS), HVAC controllers, valves, dampers, variable-air-volume (VAV) and room-pressure control, security and access integration, and energy-management services. Its customers are owners and operators of large buildings and industrial facilities, mainly in Japan and Asia. BA work divides into new buildings, existing-building retrofit, and services such as maintenance, multi-year service contracts, remote monitoring and energy optimisation.
Advanced Automation (AA): AA held 37% of FY2025 sales. It covers process automation (distributed control systems, field transmitters, flowmeters, control valves and positioners for refining, petrochemical, chemical, pulp and paper, and utilities), factory automation (single-loop controllers, sensors, switches, combustion safety, thermal mass flow meters and controllers), and MEMS-based components. These include vacuum gauges and mass flow controllers used in semiconductor deposition and etch equipment.
Life Automation (LA): LA held 11% of FY2025 sales. Its Lifeline field, through Azbil Kimmon, makes city-gas, LP-gas and water meters and offers Smart Metering as a Service (SMaaS). It also has a residential field (whole-house air conditioning) and a remaining domestic life-science engineering business. The European pharmaceutical-equipment arm, Azbil Telstar, was sold in October 2024.
Business model and revenue mix. Azbil describes itself as solution-led. It sells products into projects and then captures decades of service and retrofit revenue from the installed base. The company does not break out product, service, subscription and licensing revenue in a standard way. Its disclosures and segment commentary show three things:
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BA revenue is weighted towards engineering, service and retrofit work on existing buildings, including multi-year service contracts renewed in large blocks (as in FY2022 and Q1 FY2024).
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AA revenue is mainly product revenue (instruments, valves, controllers and MEMS devices) plus maintenance and diagnostic services, such as valve diagnostics and online abnormality prediction.
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LA revenue is mainly meter hardware tied to regulated replacement cycles, with SMaaS as an emerging recurring line.
Value-chain position. Azbil sits between equipment OEMs and end users. In buildings it acts as controls contractor and system integrator, typically subcontracted by general contractors and mechanical contractors in Japan. In industry it supplies field devices and control systems directly or through distributors. In semiconductors it supplies two layers. At the facility layer it provides HVAC and environmental control of cleanrooms and utility plants. At the tool layer it sells MEMS sensors and flow devices to equipment manufacturers.
Customer types and end markets. Customers include office and mixed-use developers, data-centre operators, hospitals, universities, hotels, public facilities, factories (semiconductors, electronics, automotive, food, pharmaceuticals), process plants (oil, gas, chemicals, steel, pulp and paper), gas utilities, water authorities and households.
Company description. In its FY2025 disclosures, Azbil describes itself as practising "human-centered automation" in three markets: buildings (BA), industry (AA) and lifelines and living (LA). It frames the goal as contributing "in series" to a sustainable society. In May 2026 it adopted a new corporate Purpose, rendered in English as "Expanding Technological Frontiers, Unlocking Human Potential", together with a ten-year Vision.
Independent characterisation. Azbil is best understood as a high-margin, cash-rich, Japan-centric installed-base franchise with a cyclical industrial arm attached. The BA franchise in Japan resembles a utility-like service business. It earned an 18.5% segment margin in FY2025, and its backlog of ¥98.8 billion at March 2026 covered more than seven months of BA sales. AA gives exposure to the semiconductor equipment and factory-automation cycle. LA is a low-margin, regulated-replacement business that management is restructuring. For the semiconductor fab supply chain, Azbil matters in two ways. It is a critical controls supplier for cleanroom environmental control in Japanese fabs, and its MEMS vacuum and flow components go into front-end equipment.
Strategy
Philosophy and Purpose. The group philosophy is "human-centered automation". In May 2026 Azbil adopted a new Purpose, "Expanding Technological Frontiers, Unlocking Human Potential", and a ten-year Vision setting out concrete goals for about 2036.
Medium-term Plan FY2025–FY2027: "Evolution and Co-creation". The plan builds on the previous plan (FY2021–FY2024), which hit several targets ahead of schedule. Its core themes are:
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Evolving the azbil business model, which combines devices, systems and lifecycle services, in each of BA, AA and LA.
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Co-creation with customers and partners, including start-ups and overseas alliances.
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Growth in three long-term fields: new automation, environment and energy (GX), and lifelines and living.
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Overseas expansion, with Southeast Asia as the priority.
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Investment in human capital, DX, R&D and product competitiveness.
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Disciplined capital management.
Financial targets
Revenue (JPY bn): FY2027 target (medium-term plan): 340.0; FY2030 target (long-term): 420.0
Overseas revenue (JPY bn): FY2027 target (medium-term plan): 62.0; FY2030 target (long-term): 100.0
Business / operating profit (JPY bn): FY2027 target (medium-term plan): 51.0; FY2030 target (long-term): 65.0
Margin (%): FY2027 target (medium-term plan): 15.0; FY2030 target (long-term): 15.5
ROE (%): FY2027 target (medium-term plan): 14; FY2030 target (long-term): 15
The FY2027 segment revenue plan is BA ¥174.0 billion, AA ¥123.0 billion and LA ¥43.0 billion. In May 2026 management kept the FY2027 targets but said it would review them once the geopolitical environment becomes clearer. FY2025 operating income of ¥47.3 billion and its 15.8% margin already exceed the FY2027 margin target. The revenue target needs roughly 7% annual growth from the FY2025 level.
Capital policy. Azbil targets dividend on equity (DOE) above 6%; it reached 6.7% in FY2025, and the FY2026 plan is 10.7% including the commemorative dividend. It makes flexible buybacks: ¥15 billion in FY2025 and up to ¥20 billion and 32 million shares between 14 May and 30 October 2026. It cancelled ¥5 billion of treasury stock in FY2024 and 19.3 million shares in FY2025. It also targets an interest-bearing debt ratio of about 15% by FY2030, which signals a move towards a more efficient balance sheet.
Initiatives announced in the last 24 months
Jun 2024 to Oct 2024: Initiative: LA portfolio restructuring; Detail: Telstar transfer to Syntegon completed
May 2025: Initiative: New medium-term plan and raised FY2030 targets; Detail: Revenue ¥420 billion, operating income ¥65 billion
Jul–Sep 2025: Initiative: Smart water metering co-creation; Detail: Azbil Kimmon and Kamstrup to launch ultrasonic smart water meters and ML leak-detection cloud in Japan from 2026
Sep–Oct 2025: Initiative: Data-centre push in Southeast Asia; Detail: Gold sponsor at Data Centre World Asia 2025; chiller-plant and air-side digital twins
Dec 2025: Initiative: Corporate venture investment; Detail: Minority investment in DATAFLUCT (data science)
Feb 2026: Initiative: Southeast Asia expansion; Detail: Johor-Singapore SEZ sales base
Apr 2026: Initiative: Organisational transformation; Detail: Global Business HQ, Cloud Systems HQ, Sustainability Management HQ, Business Management HQ; HR departments rebuilt around global talent
Apr 2026: Initiative: Decarbonisation; Detail: SBTi-validated FY2030 GHG reduction target raised to 60%
Apr 2026 onward: Initiative: IFRS adoption; Detail: Better comparability for global investors
May 2026: Initiative: Purpose, Vision and shareholder returns; Detail: ¥20 billion buyback; ¥50 dividend including ¥12 for the 120th anniversary
FY2026: Initiative: Semiconductor equipment; Detail: Launch of strategic products for semiconductor manufacturing equipment as factory-automation orders recover
Oct 2026: Initiative: Platinum Partner at ITAP 2026 (Singapore); Detail: Industrial transformation and data-centre solutions for Southeast Asia and India
FY2026 guidance (IFRS). Revenue ¥315.0 billion (+5.4%); business profit ¥48.2 billion (+3.8%); operating profit ¥49.7 billion; profit attributable to owners ¥35.3 billion; EPS ¥70.26 after buyback effects. Planned capex is ¥11.7 billion, with depreciation and amortisation of ¥12.0 billion (including right-of-use assets) and R&D of ¥13.8 billion (4.4% of revenue).
Products & Services
Building Automation (BA)
| Product / service | Description and capabilities | Target customer | Launch / latest version | Pricing model |
|---|---|---|---|---|
| savic-net series building management system | Central BMS that integrates HVAC, lighting, power and security monitoring and control for large buildings and campuses | Large office, mixed-use, hospital, university and data-centre owners | Long-established platform, updated in successive generations | Project-based capital sale plus service contracts |
| Intelligent Component Series / HVAC controllers | Field-level DDC controllers, room controllers and sensors that execute air-handling, chiller and VAV control | HVAC contractors, building owners | Continuously updated | Product sale |
| Room-pressure and VAV control for cleanrooms and laboratories | High-speed airflow and differential-pressure control to keep cleanroom cascades and fume-hood safety in semiconductor, pharmaceutical and research facilities | Fab owners, pharmaceutical plants, laboratories | Long-established | Project-based |
| Cell-based air-conditioning system | Next-generation system that splits floor space into cells and controls each one for comfort and energy efficiency | New office buildings | Sales launch 2023 | Project-based |
| HVAC control valves and actuators | Motorised two-way and three-way valves and dampers for chilled-water and heating systems | Mechanical contractors | Continuously updated | Product sale |
| Energy management and GX services | Energy audits, energy-saving retrofits and decarbonisation roadmaps; the Environmental GX Business Department was set up in April 2026 | Building owners, factories | Ongoing | Service fees and performance contracts |
| Facility management and remote operation | Remote monitoring, Building Operation Support System Center (set up April 2026), maintenance and multi-year service contracts | Building owners | Ongoing | Recurring service contracts |
| Data-centre solutions | Chiller-plant digital twin, air-side digital twin and PUE optimisation for hyperscale and colocation sites | Data-centre operators in Japan and Southeast Asia | Shown at Data Centre World Asia 2025 and ITAP 2025/2026 | Project plus service |
| Security and access-control integration | Integrates access control and surveillance with the BMS | Commercial buildings | Ongoing | Project-based |
Advanced Automation (AA)
| Product / service | Description and capabilities | Target customer | Launch / latest version | Pricing model |
|---|---|---|---|---|
| Harmonas-DEO distributed control system | Plant-wide DCS that grew out of the Honeywell joint-development heritage, for continuous processes | Refining, petrochemical, chemical, pulp and paper, utilities | Current generation | Project-based plus lifecycle support |
| Smart pressure / differential-pressure transmitters | MEMS piezoresistive sensing with HART communication; a differential-pressure sensor with high overpressure resistance has been developed | Process plants | Continuously updated | Product sale |
| MagneW electromagnetic flowmeters | Square-wave-excitation electromagnetic flowmeters; descended from the MagneW 3000 (1976) | Water, chemical and food plants | Current generation | Product sale |
| Control valves and smart valve positioners | Cage-type and rotary control valves (Azbil commercialised the world's first cage-style control valve); smart positioners with diagnostics | Process plants | Continuously updated | Product sale plus service |
| Valve diagnostics service / control-valve maintenance support system | Online valve health diagnosis to support predictive maintenance | Process plants in Japan and Asia | Shown at ITAP 2024–2025 | Service subscription and contracts |
| BiG EYES online abnormality prediction | Data-driven early warning of process abnormalities | Process plants | Current | Licence plus service |
| C1A single-loop controller | High-precision controller with ±0.1% of reading accuracy (thermocouple or Pt100) and fast response | Factory automation, semiconductor and electronics equipment | Launched 2023 | Product sale |
| SDC-series digital indicating controllers | General-purpose temperature and process controllers | Machine builders, factories | Long-established | Product sale |
| Smart HART Modem AZ-1SHM | HART modem with power supply for field-device configuration | Plant maintenance teams | Launched October 2022 | Product sale |
| F4Q digital mass flow controller | Thermal MEMS-sensor gas MFC with fast response and high accuracy; works with vacuum systems and semiconductor and analytical equipment | Semiconductor and analytical-equipment makers, laboratories | Launched August 2022 | Product sale (OEM and direct) |
| V8 sapphire capacitance diaphragm gauge (V8C / V8S) | MEMS-processed sapphire diaphragm gauge. Deposition-related zero-point shift is cut to one-tenth of the earlier SPG model and volume by 40%. The V8S separated model works at 250 °C for ALD processes | Makers of deposition and etch equipment | Launched January 2023; SICE award winner | Product sale (OEM) |
| F7M micro-flow liquid flowmeter | Stable micro-flow measurement even with bubbles, pump pulsation or temperature swings | Semiconductor wet processes, analytical instruments | Current | Product sale |
| Sensors and switches | Photoelectric sensors, limit switches, proximity sensors | Machine builders | Long-established | Product sale |
| Combustion safety and burner controls | Flame safeguards and burner management for industrial furnaces and boilers | Industrial heat users | Long-established | Product sale |
| Strategic semiconductor-equipment products | New devices for semiconductor manufacturing equipment, announced for FY2026 | Semiconductor equipment OEMs | Planned FY2026 | — |
Life Automation (LA)
| Product / service | Description and capabilities | Target customer | Launch / latest version | Pricing model |
|---|---|---|---|---|
| City-gas and LP-gas meters (Azbil Kimmon) | Microcomputer-controlled safety gas meters, including ultrasonic types | Gas utilities, LP-gas distributors | Continuously updated to regulated replacement cycles | Product sale |
| Water meters | Mechanical and battery-powered electromagnetic water meters (developed 2011) | Municipal water authorities | Current | Product sale |
| Kamstrup ultrasonic smart water meters | Next-generation ultrasonic meters, accurate at low flows, with machine-learning cloud leak detection | Japanese water utilities | Japan launch planned from Q2 2026 | Product sale plus cloud service |
| SMaaS (Smart Metering as a Service) | Data services built on smart-meter data | Utilities | Launched 2019 | Recurring service |
| Residential whole-house air conditioning | Central air-conditioning and ventilation for detached homes | Homebuilders, households | Current | Product sale |
| Life-science engineering (domestic) | Equipment and engineering for pharmaceutical and research facilities in Japan | Pharmaceutical companies | Ongoing | Project-based |
Financial Narrative
All figures are consolidated under J-GAAP for fiscal years ended 31 March. FY2021 is the year ended March 2022 and FY2025 the year ended March 2026. Per-share figures are adjusted for the 4-for-1 split of October 2024. Sources are the company's annual results releases (tanshin) and investor presentations.
Income statement
EBITDA equals operating income plus depreciation and amortisation. Azbil does not issue dilutive securities, so diluted EPS equals basic EPS. Ordinary income for FY2021–FY2023 is approximate, built from operating income plus net non-operating items.
Margins and growth (%)
Revenue grew at a 3.9% CAGR from FY2021 to FY2025, held back by the deconsolidation of Telstar. Excluding Telstar, FY2025 revenue grew 4.6% year on year. Operating income grew at a 13.8% CAGR over the same period, and FY2025 was the fifth consecutive year of record operating income.
Commentary. The central story of the five years is margin expansion, not volume. Gross margin rose 5.5 points, from 41.2% to 46.7%. Three things drove it:
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Price pass-through after the 2022–2023 parts-shortage and inflation shock.
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Mix shift towards BA service and retrofit work.
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The exit from Telstar, a lower-margin capital-equipment business, in FY2024.
SG&A, including about ¥12.7 billion of R&D, rose only about 19% while gross profit rose 32%, giving strong operating leverage. FY2024 net income was inflated by roughly ¥7.6 billion of gain on the Telstar transfer, so FY2025 net income fell 5.8% even though operating income rose 14.0%. ROE excluding that one-off was 14.2% in FY2024, against 17.9% reported.
Balance sheet
Goodwill is not material and is not shown as a separate line. Shareholders' equity ratio was 75.3% in FY2024 and 76.1% in FY2025. Book value per share was ¥459.01 at March 2025 and ¥497.71 at March 2026.
Under IFRS from April 2026, the FY2025 closing balance sheet restates to total assets of ¥347.3 billion, liabilities of ¥97.7 billion and net assets of ¥249.5 billion. The changes come from capitalised right-of-use assets and lease liabilities, accrued paid leave, and fair-valuing unlisted shares.
Cash flow
Total capex including intangibles was ¥9.8 billion in FY2024 and ¥8.0 billion in FY2025. Investing cash flow turned positive in FY2024 at ¥2.0 billion because of the Telstar proceeds, then was an outflow of ¥6.5 billion in FY2025. Cash and cash equivalents were ¥92.6 billion at March 2025 and ¥97.9 billion at March 2026.
Commentary. Cash conversion was weak in FY2021–FY2022. The global parts shortage forced Azbil to build inventory deliberately: inventory rose from ¥28.7 billion to ¥43.8 billion by FY2023, and FY2021 free cash flow was close to zero. From FY2023 inventories unwound and pricing improved. Operating cash flow tripled from FY2022 to FY2024, and FY2024 free cash flow reached ¥37.4 billion. FY2025 operating cash flow fell to ¥38.0 billion as tax payments rose to ¥14.5 billion and contract assets grew. Shareholder returns (dividends plus buybacks) were ¥30.5 billion in FY2024 and ¥36.2 billion in FY2025, roughly matching or slightly exceeding free cash flow. In practice Azbil returns all of its free cash flow while keeping about ¥90 billion of net cash.
Ratios
ROE for FY2024 and FY2025 is as reported by the company. FY2022–FY2023 ROE is net income over average equity, and FY2021 uses year-end equity. ROA is net income over average total assets, and FY2021 uses year-end assets. Interest coverage is operating income divided by interest expense.
Azbil's trial ROIC calculation for FY2025 is 11.5% under J-GAAP and 11.3% under IFRS, against a stated WACC of 7.6%, a spread of about 4 points. The cash conversion cycle was about 139 days in both FY2024 and FY2025. It breaks down as roughly 93–95 days of receivables, 81–83 days of inventory and 35–39 days of payables. This long cycle is structural for a Japanese project-based controls contractor, because receivables are heavily concentrated in the fiscal fourth quarter.
Inflections and drivers. The key inflection came in FY2023, when price pass-through caught up with cost inflation and operating margin crossed 12.7%. FY2024–FY2025 added mix benefits: BA service and the Telstar exit. Under IFRS, FY2026 guidance implies a business-profit margin of 15.3%. That is slightly down because of higher personnel, DX and R&D spending and materials inflation. It suggests the margin is levelling off in the mid-teens rather than continuing to rise.
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Segment Overview
| Segment | Contents | Key products and services |
|---|---|---|
Building Automation (BA) | Building Systems Company and BA subsidiaries in Japan and abroad | savic-net BMS; HVAC controllers and Intelligent Component devices; control valves and actuators for HVAC; VAV and room-pressure control for cleanrooms and laboratories; security integration; energy-management and GX services; facility management and remote operation support; data-centre cooling optimisation (chiller-plant and air-side digital twins) |
Advanced Automation (AA) | Advanced Automation Company and related subsidiaries | Harmonas-DEO DCS; smart pressure and differential-pressure transmitters; MagneW electromagnetic flowmeters; control valves and smart positioners; valve diagnostics; BiG EYES online abnormality prediction; single-loop controllers (C1A, SDC series); photoelectric and limit switches; combustion safety controls; thermal mass flow meters and controllers (F4Q, CMS series); V8 vacuum gauges; F7M micro-flow liquid flowmeter |
Life Automation (LA) | Azbil Kimmon (Lifeline), residential air conditioning, domestic life-science engineering; Azbil Telstar until October 2024 | Gas meters (city gas and LP gas), electromagnetic and ultrasonic water meters, SMaaS, Kamstrup ultrasonic smart water meters (Japan launch planned for 2026); whole-house air-conditioning systems |
Other | Small residual businesses | Not individually disclosed |
Revenue by Segment
| Segment | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
BA net sales (JPY Bn) | 128.5 | 134.6 | 148.8 | 156.4 |
AA net sales (JPY Bn) | 103.9 | 107.0 | 106.8 | 110.7 |
LA net sales (JPY Bn) | 47.9 | 51.4 | 46.6 | 33.3 |
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View Subscription PlansResults by Segment
| Segment | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
BA segment profit (JPY Bn) | 16.0 | 19.3 | 24.4 | 28.9 |
AA segment profit (JPY Bn) | 14.5 | 16.1 | 16.0 | 17.8 |
LA segment profit (JPY Bn) | 0.6 | 1.3 | 1.2 | 0.6 |
Segment Margins & Growth (%)
| Segment | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
BA margin (%) | 12.5 | 14.4 | 16.4 | 18.5 |
AA margin (%) | 14.0 | 15.1 | 15.0 | 16.1 |
LA margin (%) | 1.2 | 2.7 | 2.5 | 1.9 |
Revenue by Segment — BA orders
| Segment | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
BA orders (JPY Bn) | 135.3 | 136.7 | 153.6 | 163.8 |
AA orders (JPY Bn) | 113.9 | 101.4 | 106.0 | 106.2 |
LA orders (JPY Bn) | 49.6 | 51.6 | 46.8 | 33.9 |
Segment Overview (Annual)
| Segment | Sales YoY (%) | Profit YoY (%) | Share of group sales (%) | Backlog at 31 Mar 2026 (JPY Bn) |
|---|---|---|---|---|
BA | 5.1 | 18.6 | 52.3 | 98.8 |
AA | 3.6 | 11.3 | 37.0 | 44.7 |
LA | -28.5 | -46.2 | 11.2 | 5.3 |
Segment Overview — BA
| Segment | Revenue plan | Business profit plan | Margin (%) |
|---|---|---|---|
BA | 166.0 | 30.0 | 18.1 |
AA | 115.0 | 17.2 | 15.0 |
LA | 35.3 | 1.0 | 2.8 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (JPY Bn) | 256.6 | 278.4 | 290.9 | 300.4 | 298.9 |
Gross profit (JPY Bn) | 105.7 | 111.9 | 123.0 | 131.9 | 139.5 |
SG&A incl. R&D (JPY Bn) | 77.4 | 80.7 | 86.1 | 90.4 | 92.3 |
Operating income (JPY Bn) | 28.2 | 31.2 | 36.8 | 41.5 | 47.3 |
EBITDA (JPY Bn) | 33.1 | 36.1 | 42.9 | 48.2 | 54.4 |
Ordinary income (JPY Bn) | 29.5 | 31.9 | 38.9 | 42.2 | 48.8 |
Pre-tax income (JPY Bn) | 30.0 | 32.1 | 41.9 | 53.1 | 50.8 |
Net income attributable to owners (JPY Bn) | 20.8 | 22.6 | 30.2 | 41.0 | 38.6 |
EPS basic (JPY) | 37.70 | 42.07 | 57.10 | 77.96 | 75.76 |
EPS diluted (JPY) | 37.70 | 42.07 | 57.10 | 77.96 | 75.76 |
Dividend per share (JPY) | 15.00 | 16.50 | 19.00 | 24.00 | 32.00 |
Orders received (JPY Bn) | 274.8 | 296.9 | 287.8 | 304.7 | 302.4 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 41.2 | 40.2 | 42.3 | 43.9 | 46.7 |
Operating margin (%) | 11.0 | 11.2 | 12.7 | 13.8 | 15.8 |
EBITDA margin (%) | 12.9 | 13.0 | 14.7 | 16.0 | 18.2 |
Net margin (%) | 8.1 | 8.1 | 10.4 | 13.6 | 12.9 |
Net sales growth (%) | 3.9 | 8.5 | 4.5 | 3.2 | -0.5 |
Operating income growth (%) | 0.6 | 10.5 | 18.2 | 12.6 | 14.0 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (JPY Bn) | 280.1 | 296.9 | 313.7 | 315.1 | 332.2 |
Cash and deposits (JPY Bn) | 59.0 | 62.0 | 71.1 | 88.5 | 95.3 |
Short-term securities (JPY Bn) | 30.8 | 16.7 | 8.9 | 6.4 | 5.0 |
Short-term borrowings (JPY Bn) | 8.0 | 8.8 | 7.5 | 4.9 | 4.8 |
Long-term borrowings (JPY Bn) | 0.3 | 3.6 | 2.0 | 0.6 | 5.1 |
Total debt (JPY Bn) | 8.3 | 12.4 | 9.5 | 5.5 | 9.9 |
Net debt (JPY Bn, negative = net cash) | -81.4 | -66.3 | -70.5 | -89.4 | -90.4 |
Net assets (JPY Bn) | 203.1 | 205.9 | 224.9 | 240.5 | 256.0 |
Intangible assets (JPY Bn) | 5.7 | 6.2 | 6.2 | 7.5 | 8.3 |
Inventories (JPY Bn) | 28.7 | 37.2 | 43.8 | 37.6 | 36.1 |
Working capital (JPY Bn) | 141.3 | 140.7 | 151.0 | 163.0 | 174.6 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (JPY Bn) | 10.1 | 13.1 | 27.5 | 44.0 | 38.0 |
Capex, property plant and equipment (JPY Bn) | 8.9 | 7.6 | 6.3 | 6.6 | 5.6 |
Free cash flow (JPY Bn) | 1.2 | 5.6 | 21.2 | 37.4 | 32.4 |
Depreciation and amortisation (JPY Bn) | 4.8 | 5.0 | 6.0 | 6.7 | 7.1 |
Dividends paid (JPY Bn) | 8.4 | 8.6 | 9.5 | 11.2 | 13.6 |
Share buybacks (JPY Bn) | 10.0 | 15.2 | 10.0 | 19.3 | 22.6 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 10.2 | 11.1 | 14.0 | 17.9 | 15.7 |
ROA (%) | 7.4 | 7.8 | 9.9 | 13.0 | 11.9 |
Current ratio (x) | 3.03 | 2.78 | 2.94 | 3.40 | 3.71 |
Debt to equity (x) | 0.04 | 0.06 | 0.04 | 0.02 | 0.04 |
Net debt to EBITDA (x) | -2.46 | -1.84 | -1.64 | -1.85 | -1.66 |
Interest coverage (x) | 229 | 212 | 136 | 233 | 397 |
Asset turnover (x) | 0.92 | 0.97 | 0.95 | 0.96 | 0.92 |
Revenue by Region and Revenue by Region (%)
| Region | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Japan net sales (JPY Bn) | 223.6 | 237.2 | 246.5 |
Overseas net sales (JPY Bn) | 67.3 | 63.2 | 52.4 |
Overseas share of sales (%) | 23.1 | 21.0 | 17.5 |
Revenue by Region
| Region | FY2024 | FY2025 |
|---|---|---|
Japan (JPY Bn) | 237.2 | 246.5 |
China (JPY Bn) | 15.8 | 15.7 |
Asia excluding China (JPY Bn) | 26.1 | 26.0 |
North America (JPY Bn) | 9.5 | 8.2 |
Europe (JPY Bn) | 8.9 | 0.9 |
Others (JPY Bn) | 2.9 | 1.6 |
Geographic Revenue
| Region | FY2024 | FY2025 | Growth (%) |
|---|---|---|---|
China | 25.1 | 26.0 | 3.2 |
Asia excluding China | 15.6 | 15.7 | 0.7 |
North America | 5.4 | 8.2 | 50.0 |
Europe | 0.7 | 0.8 | 11.9 |
Others | 1.4 | 1.5 | 7.9 |
Total overseas | 48.5 | 52.4 | 8.0 |
Share Price History
| Date | Share price (JPY) |
|---|---|
Sep 2024 (pre-split ¥4,720) | 1,180 |
24 Oct 2025 | 1,409 |
14 Feb 2026 | 1,283 |
24 Apr 2026 | 1,399 |
24 Jul 2026 | 1,635 |
23 Oct 2026 | 1,499 |
Valuation Snapshot
| Multiple | Value |
|---|---|
P/E on FY2025 J-GAAP EPS (¥75.76) | 19.8x |
P/E on FY2026 IFRS guidance EPS (¥70.26) | 21.3x |
P/B on March 2026 BPS (¥497.71) | 3.0x |
EV/EBITDA, FY2025 (EV about ¥660 billion) | 12.1x |
EV/Sales, FY2025 | 2.2x |
Dividend yield, FY2026 plan ¥50 | 3.3% |
Dividend yield, FY2026 ordinary ¥38 | 2.5% |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (JPY) | 15.00 | 16.50 | 19.00 | 24.00 | 32.00 |
Payout ratio (%) | 39.8 | 39.2 | 33.3 | 30.8 | 42.2 |
Analyst Conclusions
Management guidance (FY2026, IFRS). Revenue ¥315.0 billion (+5.4%), business profit ¥48.2 billion (+3.8%, margin 15.3%), operating profit ¥49.7 billion, profit attributable ¥35.3 billion and EPS ¥70.26. Segment plans are BA ¥166.0 billion / ¥30.0 billion, AA ¥115.0 billion / ¥17.2 billion and LA ¥35.3 billion / ¥1.0 billion. The first-half plan is revenue ¥139.5 billion and business profit ¥17.3 billion. Management said Q1 was on track. The FY2027 targets (¥340 billion revenue, ¥51 billion profit, 15% margin, 14% ROE) remain in place but are under review. Consensus expects revenue to grow at a high-single-digit rate over two years.
Bull case
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Semiconductor and factory-automation upcycle. Q1 FY2026 factory-automation orders rose more than 50% and group orders 28.5%. Combined with new semiconductor-equipment products, this could lift AA above its ¥115 billion plan and towards the ¥123 billion FY2027 target.
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BA compounding. A backlog up 9% to ¥98.8 billion, Q1 FY2026 BA orders up 31%, and data-centre and GX retrofit demand support BA growth of 6% or more at margins above 18%.
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Capital efficiency. ¥90 billion of net cash, buybacks of 6% of shares a year, a 10.7% DOE in FY2026 and the target of about 15% debt by FY2030 imply rising ROE and EPS beyond operating growth.
Bear case
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Margin plateau. Q1 FY2026 business-profit margin fell to 7.8%. Personnel, DX and R&D costs are rising structurally, and guidance already implies a lower margin in FY2026.
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Japan dependence. With 82% of sales domestic and new office demand plateauing, BA growth depends on retrofit and data centres. A slower Japanese construction market would hurt.
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Geopolitics and input costs. Middle East-driven resource and logistics costs, copper inflation (which hits LA) and tariff-related capex delays could push results below plan. The stock's roughly 20x P/E leaves little room for disappointment.
Key catalysts (next 12 months)
Early November 2026: Catalyst: H1 FY2026 results; first IFRS half-year; buyback completion; interim ¥31 dividend
November 2026 to February 2027: Catalyst: Conversion of strong Q1 orders into revenue; trend in factory-automation and semiconductor-equipment orders
FY2026: Catalyst: Launch of strategic semiconductor-equipment products
FY2026: Catalyst: Commercial uptake of Kamstrup smart water meters in Japan
May 2027: Catalyst: FY2026 results; possible update of FY2027 and FY2030 targets; FY2027 shareholder-return plan
Ongoing: Catalyst: Middle East cost pass-through; copper prices; Southeast Asia data-centre wins
Analyst verdict. Azbil is one of the highest-quality mid-cap industrial franchises in Japan. Over FY2021–FY2025 it turned modest revenue growth into almost 14% compound growth in operating income, lifting operating margin from 11.0% to 15.8%. It did so through price discipline, service mix and the exit from Telstar, all without leverage. In building automation it is the domestic market leader with a large installed base, and its ¥98.8 billion BA backlog gives unusual visibility. For readers focused on the semiconductor fab supply chain, Azbil offers two-layer exposure. It is a controls and environmental-management supplier for Japanese cleanrooms and fab facilities, which benefit from Japan's semiconductor capacity build-out. It is also a niche supplier of MEMS vacuum gauges and mass flow controllers to equipment makers, which is the more cyclical layer and is now in recovery: factory-automation orders rose more than 50% in Q1 FY2026.
The investment debate is about the margin trajectory, not franchise quality. Management is reinvesting heavily in people, DX, cloud and overseas expansion. FY2026 guidance implies a slightly lower margin, and Q1 showed the near-term cost of that investment. Azbil also remains a Japan-centric business. Overseas revenue is only 17.5% of sales against a goal of ¥100 billion by FY2030, which needs about 17% annual growth from today's base.
At about 20–21x earnings, 12x EV/EBITDA and 3.0x book, the shares price in steady compounding but not a re-acceleration. Total shareholder yield of roughly 6% in FY2026 (dividends plus buybacks) and a net-cash balance sheet limit the downside. The upside case depends on AA's semiconductor-led recovery and BA data-centre wins turning record orders into revenue in the second half of FY2026, while costs stay contained.
Overall, Azbil is a defensive compounder with optional semiconductor-cycle upside. The H1 FY2026 results and margin direction through the fiscal year are the decisive monitorables. A credible plan to reach the FY2030 overseas target, possibly using the balance sheet for acquisitions, would be the main re-rating trigger.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / notes |
|---|---|---|
Kiyohiro Yamamoto | Director, Representative Corporate Executive, President and Group CEO | Group CEO since June 2020; previously Managing Executive Officer and Executive Vice President (April 2020) |
Takayuki Yokota | Director, Representative Corporate Executive, Deputy President | Long-serving executive; board member since at least 2019 |
Takashi Igarashi | Managing Corporate Executive | Promoted from Managing Executive Officer, April 2026 |
Kazuyasu Hamada | Managing Corporate Executive | Former executive director; reappointed |
Hideaki Ishii | Managing Corporate Executive | Appointed June 2024; reappointed |
Board of Directors
| Name | Role | Independent | Committees |
|---|---|---|---|
Tomoyasu Miura | Chairperson of the Board | Yes | — |
Kiyohiro Yamamoto | Director, President and Group CEO | No | Nominating (member) |
Takayuki Yokota | Director, Deputy President | No | Compensation (member) |
Hisaya Katsuta | Director (non-executive, full-time Audit Committee member) | No | Audit (member) |
Anne Ka Tse Hung | Outside Director | Yes | Nominating (member) |
Shigeaki Yoshikawa | Outside Director | Yes | Nominating (chair); Compensation (member) |
Sachiko Ichikawa | Outside Director | Yes | Nominating (member) |
Hiroshi Yoshida | Outside Director | Yes | Audit (chair) |
Satoko Nakatani | Outside Director (appointed 2025) | Yes | Audit (member) |
Shoichiro Eguchi | Outside Director (appointed June 2026) | Yes | — |
Junichi Nishizawa | Outside Director (appointed June 2026) | Yes | Compensation (chair) |
“—” = not publicly disclosed.
Major Shareholders
| Rank | Shareholder | Shares held | Stake (%) |
|---|---|---|---|
| 1 | The Master Trust Bank of Japan (trust account) | 69,733,393 | 13.46 |
| 2 | State Street Bank and Trust Company 505001 | 47,999,081 | 9.26 |
| 3 | Meiji Yasuda Life Insurance Company | 41,712,800 | 8.05 |
| 4 | Custody Bank of Japan (trust account) | 24,571,000 | 4.77 |
| 5 | National Mutual Insurance Federation of Agricultural Cooperatives (Zenkyoren) | 13,425,600 | 2.59 |
| 6 | Northern Trust Co. (AVFC) re Fidelity Funds | 13,065,768 | 2.52 |
| 7 | azbil Group Employee Shareholding Association | 12,185,005 | 2.35 |
| 8 | BBH for employee-benefit plan pool | 7,869,900 | 1.51 |
| 9 | State Street Bank and Trust Company 505103 | 7,655,914 | 1.47 |
| 10 | Nippon Life Insurance Company | 7,478,656 | 1.44 |
Competitive Landscape
Key Competitors
| Competitor | Home country | Segments where it competes with Azbil | Relative positioning |
|---|---|---|---|
Johnson Controls International | Ireland / US | BA (BMS, HVAC controls, data centres, cleanrooms) | Global leader with far greater scale; strong in Americas data centres; smaller presence than Azbil in Japanese BA |
Siemens (Smart Infrastructure) | Germany | BA (Desigo BMS, room-pressure control for labs and cleanrooms) | Global scale; strong in Europe, China and pharmaceutical and lab cleanrooms |
Honeywell (Building Automation) | US | BA | Former partner; global BMS and controls franchise |
Schneider Electric | France | BA (EcoStruxure Building), power management for data centres | Strong in data-centre power and cooling ecosystems |
Yokogawa Electric | Japan | AA (DCS, transmitters, flowmeters) | Japan's largest process-automation peer; much larger overseas oil and gas exposure |
Emerson Electric | US | AA (DCS, control valves, transmitters) | Global leader in control valves and process instruments |
ABB | Switzerland | AA (DCS, instrumentation) | Global DCS competitor |
Omron | Japan | AA (factory-automation controllers, sensors) | Large Japanese factory-automation competitor |
HORIBA (HORIBA STEC) | Japan | AA (mass flow controllers for semiconductor equipment) | Global leader in semiconductor MFCs |
MKS Instruments | US | AA (vacuum gauges, MFCs) | Leading vacuum and capacitance-manometer supplier to semiconductor equipment makers |
INFICON | Switzerland | AA (vacuum gauges) | Specialist vacuum measurement supplier |
Panasonic and Aichi Tokei Denki | Japan | LA (gas and water meters) | Main domestic meter competitors |
Peer Comparison FY2025
| Metric | Azbil (FY ended Mar 2026) | Yokogawa Electric (FY ended Mar 2026) | HORIBA (FY ended Dec 2025) | Johnson Controls (FY ended Sep 2025) |
|---|---|---|---|---|
Revenue | ¥298.9 bn | ¥604.8 bn | ¥333.1 bn | US$23.6 bn |
Revenue growth (%) | -0.5 (+4.6 excl. Telstar) | 7.5 | 5.0 | 6 (organic) |
Operating margin (%) | 15.8 | 13.6 | 15.9 | Not comparable (adjusted segment EBITA margin rose about 1 point) |
R&D share of revenue (%) | 4.3 | 5.5 | — | — |
“—” = not publicly disclosed.
