# Ecology and Combustion Inc.: business model and financials

> Latest period: FY ending Jul 2025, non-consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第40期(2024/08/01－2025/07/31) (S100WWVI)
> Page: https://vizora.meequs.com/en/company/ecology-and-combustion
> Retrieved: 2026-09-30T20:42:21.219Z

## Company

Ecology and Combustion, founded in 1985, is a company in Industrial Machinery listed on Nagoya. It has 75 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Ecology and Combustion Inc. |
| Ticker | 6225 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6225.T) |
| Listing | Nagoya |
| Head office | 静岡県浜松市浜名区平口5277番地1 |
| Representative (per filing) | 代表取締役 髙梨 智志 |
| Founded | Aug 1985 |
| Share capital | ¥131.7M |
| Employees (consolidated) | 75 |
| Average salary (parent only) | ¥5.1M |
| Fiscal year end | July |
| Website | ecom-jp.co.jp (https://ecom-jp.co.jp/) |
| Corporate number | 2080401002321 |
| EDINET | E38483 |
| Industries (Vizora) | Industrial Machinery |

> Profile source: annual securities report (S100WWVI, filed 2025-10-24). As of filing

## Five-axis industry profile

Primary industry: Industrial Machinery (2025-07-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 97.7 | 110 |
| Profitability | 81.6 | 122 |
| Cash conversion | 64.2 | 116 |
| Efficiency | 29.9 | 122 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 61% of Ecology and Combustion's sales come from Industrial systems, with Maintenance Service making up much of the rest.
- Out of every ¥100 of sales, about ¥14 is left as operating profit.
- Revenue changed +7.1% from the prior year, operating profit +20.1%.

## Company structure

- Segment revenue mix: Industrial systems 61.1%、Maintenance Service 38.9%
- Revenue → net income: ¥2639951000 → ¥262574000
- Net income → operating cash flow: ¥262574000 → ¥554301000（difference ¥291727000）
- Main uses of operating cash flow: CapEx ¥974000 / dividends ¥51118000 / buybacks —
- Change in cash: ¥251905000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥2.64B |  |
| Operating income | ¥374M | Margin 14.2% |
| Net income | ¥262.6M | Margin 9.9% |
| Free cash flow | ¥553.3M |  |
| Largest business | Industrial systems | of segment revenue 61.1% |
| Employees (consolidated) | 75 |  |
| EPS | ¥143.88 |  |
| Book value per share | ¥1796.79 |  |
| Equity ratio | 81.0% |  |
| Shares outstanding | 1,920,000 |  |
| Treasury shares | 95,000 |  |
| Shareholders | 552 |  |
| Average salary (parent only) | ¥5.1M | Filing company only |
| Cash ratio | 41.9% | Cash ÷ revenue 64.3% |
| Vs. industry median margin | +6.6 pp | Industrial Machinery |
| ROE | 8.3% | Derived from disclosed figures |
| ROA | 6.5% | Derived from disclosed figures |

## Notable figures

- FY2025, operating cash flow is 2.1× net income
- FY2025, cash is 42% of total assets

## What changed in 3 years

| Metric | FY ending Jul 2022 | FY ending Jul 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥1501304000 | ¥2639951000 | +75.8% |
| Operating income | ¥97806000 | ¥374049000 | +282.4% |
| Operating margin | 6.5% | 14.2% | +7.7 pp |
| Employees | 65 people | 75 people | +15.4% |
| Cash and equivalents | ¥1408088000 | ¥1698318000 | +20.6% |

### Change in segment revenue mix

Span: FY ending Jul 2022 → FY ending Jul 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 産業システム事業 → 産業システム事業 | 58.3% |
| 保守サービス事業 → 保守サービス事業 | 38.9% |
| 保守サービス事業 → 事業再編・廃止 | 2.8% |
| 新設・再編 → 産業システム事業 | 2.8% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Jul 2025, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 2,640 | 100.0% | S100WWVI |
| Cost of revenue | 1,747 | 66.2% | S100WWVI |
| Gross profit | 893 | 33.8% | S100WWVI |
| SG&A | 519 | 19.6% | S100WWVI |
| Operating income | 374 | 14.2% | S100WWVI |
| Ordinary income | 376 | 14.2% | S100WWVI |
| Pretax income | 383 | 14.5% | S100WWVI |
| Income tax | 120 | 4.6% | S100WWVI |
| Net income | 263 | 9.9% | S100WWVI |

## Per ¥100 of revenue（FY ending Jul 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 66 |
| SG&A | 20 |
| Operating income | 14 |
| (Ref.) Net income | 10 |

### Margin funnel

Gross margin 33.8% → Operating margin 14.2% → Net margin 9.9%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +7.1%; Core profit growth: +20.1%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 2.85×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Jul 2024 → FY ending Jul 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 2,466 | 2,640 | 174 | +7.1% |
| Gross profit | 770 | 893 | 123 | +15.9% |
| Operating income | 311 | 374 | 63 | +20.1% |
| Operating cash flow | -198 | 554 | 753 | — |
| Free cash flow | -200 | 553 | 754 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Jul 2022 | 1,501 | 98 | 6.5% | 101 | 9 | -615 | S100S31F |
| FY ending Jul 2023 | 2,382 | 244 | 10.2% | 277 | 180 | 152 | S100ULL0 |
| FY ending Jul 2024 | 2,466 | 311 | 12.6% | 211 | -198 | -200 | S100WWVI |
| FY ending Jul 2025 | 2,640 | 374 | 14.2% | 263 | 554 | 553 | S100WWVI |

## People and productivity（FY ending Jul 2025, non-consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥35.2M |
| Operating income per employee (consolidated) | ¥5M |
| Net income per employee (consolidated) | ¥3.5M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Jul 2022 | FY ending Jul 2023 | FY ending Jul 2024 | FY ending Jul 2025 |
| --- | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 65 | 67 | 73 | 75 |
| Average salary (parent company) | — | ¥5M | ¥5.2M | ¥5.1M |
| Average age (parent company) | — | 34.8 years | 35.6 years | 35.9 years |
| Average tenure (parent company) | — | 10.4 years | 11.4 years | 10.7 years |

Year over year: Employees (consolidated) +2.7% · Revenue (consolidated) +7.1%

## Segments（FY ending Jul 2025, non-consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Industrial systems | 1,613 | 61.1% | 288 | 17.9% |
| Maintenance Service | 1,027 | 38.9% | 259 | 25.3% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Industrial systems | 61.1% | 52.6% | -8.5 | 17.9% |
| Maintenance Service | 38.9% | 47.4% | 8.5 | 25.3% |

Segment → industry: Maintenance Service → Industrial Machinery / Industrial systems → Industrial Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Jul 2025, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 554 | 21.0% | S100WWVI |
| Capital expenditure | 1 | 0.0% | S100WWVI |
| Free cash flow | 553 | 21.0% | 算出 |
| Investing cash flow | -58 | -2.2% | S100WWVI |
| Financing cash flow | -244 | -9.2% | S100WWVI |
| Dividends paid | 51 | 1.9% | S100WWVI |
| Change in cash | 252 | 9.5% | S100WWVI |
| Cash and equivalents | 1,698 | 64.3% | S100WWVI |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Jul 2022 | FY ending Jul 2023 | FY ending Jul 2024 | FY ending Jul 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 1,408 | 1,783 | 1,446 | 1,698 | S100ULL0, S100WWVI |
| Total assets | 4,061 | 4,033 | 4,040 | 4,050 | S100S31F, S100ULL0, S100WWVI |
| Net assets | 2,571 | 2,902 | 3,068 | 3,279 | S100ULL0, S100WWVI |
| Share capital | 100 | 132 | 132 | 132 | S100S31F, S100ULL0, S100WWVI |
| Property, plant and equipment | 1,482 | 1,271 | 1,208 | 1,148 | S100S31F, S100ULL0, S100WWVI |
| Intangible assets excluding goodwill | 8 | 6 | 27 | 20 | S100S31F, S100ULL0, S100WWVI |
| Goodwill | — | — | 23 | 18 | S100WWVI |
| Investment securities | — | — | — | 40 | S100WWVI |
| Current assets | 2,530 | 2,713 | 2,760 | 2,780 | S100S31F, S100ULL0, S100WWVI |
| Current liabilities | 1,062 | 737 | 609 | 549 | S100S31F, S100ULL0, S100WWVI |
| Long-term borrowings | 236 | 193 | 150 | — | S100S31F, S100ULL0, S100WWVI |
| Total liabilities | 1,490 | 1,130 | 973 | 771 | S100S31F, S100ULL0, S100WWVI |
| Equity attributable to owners of parent | 2,571 | 2,902 | 3,068 | 3,279 | S100S31F, S100ULL0, S100WWVI |
| Retained earnings | 2,812 | 3,080 | 3,245 | 3,211 | S100S31F, S100ULL0, S100WWVI |
| Treasury stock | -369 | -369 | -369 | -123 | S100S31F, S100ULL0, S100WWVI |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 42% | S100WWVI |
| Property, plant and equipment | 28% | S100WWVI |
| Intangibles and goodwill | 1% | S100WWVI |
| Investment securities | 1% | S100WWVI |
| Other assets | 28% | S100WWVI |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 19% | S100WWVI |
| Equity | 81% | S100WWVI |

### Balance sheet history

| Metric | FY ending Jul 2022 | FY ending Jul 2023 | FY ending Jul 2024 | FY ending Jul 2025 |
| --- | ---: | ---: | ---: | ---: |
| Total assets | 4,061 | 4,033 | 4,040 | 4,050 |
| Equity | 2,571 | 2,902 | 3,068 | 3,279 |
| Interest-bearing debt | — | — | — | — |
| Cash | 1,408 | 1,783 | 1,446 | 1,698 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 43.5% | S100WWVI |
| Fixed assets ÷ total assets | 28.3% | S100WWVI |
| Goodwill ÷ parent equity | 0.6% | S100WWVI |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 41.9% |
| Cash ÷ revenue | 64.3% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 148.2% |
| Cash vs. profit gap | 292 JPY mn (of net income 111.1%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 19.5% |
| Shareholder payments — dividends / FCF | 9.2% |
| CapEx intensity (capex ÷ revenue) | 0.0% |
| Investing CF relative to operating CF | 10.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 6.7% | 0.37× | 2.5% | 1.58× | 3.9% | S100S31F |
| 2023 | 11.6% | 0.59× | 6.8% | 1.48× | 10.1% | S100ULL0 |
| 2024 | 8.6% | 0.61× | 5.2% | 1.35× | 7.1% | S100WWVI |
| 2025 | 9.9% | 0.65× | 6.5% | 1.27× | 8.3% | S100WWVI |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 髙梨 智志 | Major shareholder | 24.6% | 2025-07-31 |
| 髙梨 今日子 | Major shareholder | 20.2% | 2025-07-31 |
| エコム社員持株会 | Major shareholder | 11.3% | 2025-07-31 |
| ノリタケ株式会社 | Major shareholder | 5.6% | 2025-07-31 |
| 東京中小企業投資育成株式会社 | Major shareholder | 5.5% | 2025-07-31 |
| しんきん－やらまいか投資事業有限責任組合 | Major shareholder | 5.0% | 2025-07-31 |
| 株式会社ライトハンドオフィス | Major shareholder | 4.1% | 2025-07-31 |
| 関西電力株式会社 | Major shareholder | 3.3% | 2025-07-31 |
| 牧野 史朗 | Major shareholder | 1.2% | 2025-07-31 |
| 伊達 快行 | Major shareholder | 1.1% | 2025-07-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第40期(2024/08/01－2025/07/31) | S100WWVI | 2025-10-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100WWVI,, |
| 有価証券報告書－第39期(2023/08/01－2024/07/31) | S100ULL0 | 2024-10-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100ULL0,, |
| 有価証券報告書－第38期(2022/08/01－2023/07/31) | S100S31F | 2023-10-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100S31F,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).