Analytical and Measurement Instruments FY2026 Full Year: Horiba leads on margins

The three companies averaged 0.1% sales growth, leaving the group virtually flat on a simple average basis. Their reporting periods differ.

• Advanced semiconductors supported Horiba's growth, as demand tied to generative AI drove measurement needs. At JEOL, equipment shipments were delayed.
• Geographic and end-market diversity helped separate performance. Growth in North America and Europe, as well as in pharmaceuticals and food, helped Shimadzu offset a sluggish China market.
• Currency gains and tax burdens affected bottom-line results. Foreign-exchange gains lifted Shimadzu's ordinary profit, while FX gains and lower taxes supported JEOL's net income.
• Automotive development demand also provided a tailwind. Horiba captured measurement demand for hybrid-vehicle development in Europe and the U.S.

The strongest performer was Horiba. Sales rose 5.0% to ¥333.1 billion, while operating profit increased 9.7% to ¥53 billion. Its operating margin was 15.9%, the highest among the three.

Horiba captured demand from semiconductors and automotive development, converting sales growth into stronger profit growth. Its operating margin also rose from 15.2% a year earlier.

The weakest performer was JEOL. Sales fell 8.8% to ¥179.4 billion, and operating profit dropped 26.7% to ¥26 billion. U.S. government budget cuts and stagnant capital investment weighed on results, alongside delayed shipments of semiconductor-related equipment.

Net income, however, rose 18.2% to ¥22.1 billion. FX gains and a lower tax burden provided support. The increase in net income alone does not indicate a recovery in core operations.

Shimadzu benefits from its scale. Sales totaled ¥560.7 billion, the highest of the three, and rose 4.0% to a record, supported by demand from pharmaceutical and food customers and in North America and Europe. For the next fiscal year, it forecasts sales of ¥575 billion and operating profit of ¥76 billion.

Horiba is translating growth in promising markets into profit. Its operating margin of 15.9% was the highest among the three. The company is advancing its medium-term management plan, “MLMAP2028,” and added a ¥160 year-end special dividend. It forecasts higher sales and profit in the next fiscal year, with sales of ¥345 billion and operating profit of ¥56 billion.

JEOL is focused on selecting and concentrating its businesses. It is reviewing its medical equipment business and plans to focus on scientific and measurement instruments and industrial equipment. For the next fiscal year, it forecasts sales of ¥164 billion and operating profit of ¥26.5 billion. Restoring profit, rather than sales, is the key challenge.

The three companies have different business portfolios, but all are exposed to shifts in demand and overseas conditions.

• The semiconductor investment cycle. Generative AI demand remains supportive, but deferred capital spending can disrupt equipment shipment schedules.
• Regional economies and geopolitical risks. A slowdown in China or policy changes in other countries could affect sales plans.
• Currency swings. FX gains can support profits, but movements in the opposite direction can weigh on them.
• Customer research and equipment budgets. Changes in government budgets or corporate investment decisions can shift demand for measurement equipment.
• Technology and regulation. Companies that fail to keep pace with changes in semiconductors or automotive technology risk losing product competitiveness.

Shimadzu led in sales and operating profit, while Horiba had the highest operating margin. Their strengths lie in scale and profitability, respectively.

Horiba recorded the fastest sales and operating-profit growth among the three. JEOL, meanwhile, led in net income growth even as operating profit fell sharply. The divergence between bottom-line results and core business performance warrants attention.

The three companies' operating margins ranged from 13.1% to 15.9%. The sector has strong profitability, but differences in exposure to growth markets and shipment timing are driving performance gaps.

Analytical and measurement instruments support a wide range of industries, including pharmaceuticals, food, semiconductors and automotive. The sector is exposed to economic cycles, but companies with customers across multiple fields can spread demand risk.

When evaluating employers, look beyond their products to the regions and industries where they are strongest. Shimadzu stands out for the breadth of its businesses and geographic reach, Horiba for high profitability and exposure to growth markets, and JEOL for its business restructuring and specialized expertise. Work with overseas customers and a willingness to keep learning new technologies are also important.