# OTEC CORPORATION: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第78期(2025/04/01－2026/03/31) (S100YKWY)
> Page: https://vizora.meequs.com/en/company/otec
> Retrieved: 2026-09-30T19:09:17.663Z

## Company

Otec, founded in 1948, is a company in Plant Engineering & Building Services listed on TSE Standard. It has 573 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | OTEC CORPORATION |
| Ticker | 1736 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1736.T) |
| Listing | TSE Standard |
| Head office | 東京都江東区東陽二丁目4番2号 (注)2026年7月21日から本店は下記に移転する予定であります。 東京都千代田区丸の内一丁目11番1号 |
| Representative (per filing) | 代表取締役社長 市原 伸一 |
| Founded | Jul 1948 |
| Share capital | ¥599.4M |
| Employees (consolidated) | 573 |
| Average salary (parent only) | ¥9.1M |
| Fiscal year end | March |
| Website | www.o-tec.co.jp (https://www.o-tec.co.jp/) |
| Corporate number | 8010601001272 |
| EDINET | E00304 |
| Industries (Vizora) | Plant Engineering & Building Services, Specialty Trading & Wholesale |

> Profile source: annual securities report (S100YKWY, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: Plant Engineering & Building Services (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 67.4 | 72 |
| Profitability | 88.8 | 76 |
| Cash conversion | 60.1 | 74 |
| Efficiency | 38.8 | 76 |

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 64% of Otec's sales come from Environmental system business, with Plumbing sanitary equipment business making up much of the rest.
- Out of every ¥100 of sales, about ¥15 is left as operating profit.
- Revenue changed +7.3% from the prior year, operating profit +26.3%.

## Company structure

- Segment revenue mix: Environmental system business 64.4%、Plumbing sanitary equipment business 35.6%
- Revenue → net income: ¥33722262000 → ¥3659669000
- Net income → operating cash flow: ¥3659669000 → ¥4617758000（difference ¥958089000）
- Main uses of operating cash flow: CapEx ¥674912000 / dividends ¥1338169000 / buybacks —
- Change in cash: ¥1999359000
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 | ¥33.7B |  |
| Operating income | ¥5.08B | Margin 15.1% |
| Net income | ¥3.63B | Margin 10.8% |
| Free cash flow | ¥3.94B |  |
| Largest business | Environmental system business | of segment revenue 64.4% |
| Employees (consolidated) | 573 |  |
| EPS | ¥230.95 |  |
| Book value per share | ¥1601.37 |  |
| Equity ratio | 67.5% |  |
| Shares outstanding | 17,100,000 |  |
| Treasury shares | 1,443,000 |  |
| Shareholders | 1,370 |  |
| Average salary (parent only) | ¥9.1M | Filing company only |
| Cash ratio | 26.3% | Cash ÷ revenue 30.7% |
| Vs. industry median margin | +6 pp | Plant Engineering & Building Services |
| ROE | 16.4% | Derived from disclosed figures |
| ROA | 9.8% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 100% of positive segment profit
- FY2026, segment profit share differs by 36 points
- FY2026, parent-company salary changed +25% over five years

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥23458243000 | ¥33722262000 | +43.8% |
| Operating income | ¥1993467000 | ¥5084440000 | +155.1% |
| Operating margin | 8.5% | 15.1% | +6.6 pp |
| Employees | 499 people | 573 people | +14.8% |
| Cash and equivalents | ¥5576172000 | ¥10340426000 | +85.4% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 環境システム事業 → 環境システム事業 | 55.9% |
| 管工機材事業 → 管工機材事業 | 35.6% |
| 管工機材事業 → 事業再編・廃止 | 8.5% |
| 新設・再編 → 環境システム事業 | 8.5% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 33,722 | 100.0% | S100YKWY |
| Cost of revenue | 23,158 | 68.7% | S100YKWY |
| Gross profit | 10,565 | 31.3% | S100YKWY |
| SG&A | 5,480 | 16.3% | S100YKWY |
| Operating income | 5,084 | 15.1% | S100YKWY |
| Ordinary income | 5,358 | 15.9% | S100YKWY |
| Pretax income | 5,322 | 15.8% | S100YKWY |
| Income tax | 1,662 | 4.9% | S100YKWY |
| Net income | 3,660 | 10.9% | S100YKWY |
| Net income attributable to owners | 3,627 | 10.8% | S100YKWY |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 69 |
| SG&A | 16 |
| Operating income | 15 |
| (Ref.) Net income | 11 |

### Margin funnel

Gross margin 31.3% → Operating margin 15.1% → Net margin 10.8%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +7.3%; Core profit growth: +26.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 3.60×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 31,424 | 33,722 | 2,298 | +7.3% |
| Gross profit | 9,178 | 10,565 | 1,386 | +15.1% |
| Operating income | 4,025 | 5,084 | 1,060 | +26.3% |
| Net income attributable to owners | 2,874 | 3,627 | 752 | +26.2% |
| Operating cash flow | 3,542 | 4,618 | 1,076 | +30.4% |
| Free cash flow | 2,736 | 3,943 | 1,207 | +44.1% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 27,226 | 2,297 | 8.4% | 1,620 | 2,515 | 2,454 | S100LIFH |
| FY ending Mar 2021 | 23,458 | 1,993 | 8.5% | 1,326 | 1,236 | 1,048 | S100OJ3H |
| FY ending Mar 2022 | 25,410 | 1,924 | 7.6% | 1,350 | 1,065 | 470 | S100QXFG |
| FY ending Mar 2023 | 26,138 | 1,954 | 7.5% | 1,246 | 780 | 154 | S100TRQW |
| FY ending Mar 2024 | 29,374 | 2,027 | 6.9% | 1,387 | 2,780 | 2,433 | S100W6KN |
| FY ending Mar 2025 | 31,424 | 4,025 | 12.8% | 2,874 | 3,542 | 2,736 | S100YKWY |
| FY ending Mar 2026 | 33,722 | 5,084 | 15.1% | 3,627 | 4,618 | 3,943 | S100YKWY |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥58.9M |
| Operating income per employee (consolidated) | ¥8.9M |
| Net income per employee (consolidated) | ¥6.3M |

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

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 503 | 516 | 518 | 530 | 573 |
| Average salary (parent company) | ¥7.3M | ¥7.2M | ¥7.9M | ¥9.1M | ¥9.1M |
| Average age (parent company) | 41.6 years | 41.8 years | 41.7 years | 41.6 years | 40.9 years |
| Average tenure (parent company) | 16.0 years | 16.1 years | 15.9 years | 16.0 years | 15.3 years |

Year over year: Employees (consolidated) +8.1% · Revenue (consolidated) +7.3%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Environmental system business | 21,709 | 64.4% | 6,075 | 28.0% |
| Plumbing sanitary equipment business | 12,014 | 35.6% | -81 | -0.7% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Environmental system business | 64.4% | 100.0% | 35.6 | 28.0% |
| Plumbing sanitary equipment business | 35.6% | — | — | -0.7% |

Loss-making segment (excluded from profit shares): Plumbing sanitary equipment business -81 JPY mn

Segment → industry: Environmental system business → Plant Engineering & Building Services / Plumbing sanitary equipment business → Specialty Trading & Wholesale

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 4,618 | 13.7% | S100YKWY |
| Capital expenditure | 675 | 2.0% | S100YKWY |
| Free cash flow | 3,943 | 11.7% | 算出 |
| Investing cash flow | -1,246 | -3.7% | S100YKWY |
| Financing cash flow | -1,372 | -4.1% | S100YKWY |
| Dividends paid | 1,338 | 4.0% | S100YKWY |
| Change in cash | 1,999 | 5.9% | S100YKWY |
| Cash and equivalents | 10,340 | 30.7% | S100YKWY |

## 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 Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 5,590 | 4,550 | 6,299 | 8,341 | 10,340 | S100TRQW, S100W6KN, S100YKWY |
| Total assets | 26,768 | 28,339 | 31,798 | 34,671 | 39,315 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Net assets | 17,863 | 18,479 | 20,256 | 22,902 | 27,085 | S100TRQW, S100W6KN, S100YKWY |
| Share capital | 599 | 599 | 599 | 599 | 599 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Property, plant and equipment | 2,962 | 3,242 | 3,424 | 3,911 | 4,301 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Intangible assets excluding goodwill | 1,537 | 1,455 | 1,556 | 1,342 | 1,104 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Goodwill | 1,431 | 1,272 | 1,113 | 954 | 795 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Investment securities | 3,674 | 4,219 | 5,547 | 6,297 | 8,835 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Current assets | 17,481 | 18,219 | 19,775 | 21,556 | 22,998 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Current liabilities | 7,721 | 8,556 | 10,097 | 10,047 | 9,516 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Short-term borrowings | 965 | 977 | 1,425 | 1,307 | 1,129 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Long-term borrowings | 249 | 213 | 84 | 330 | 531 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Total liabilities | 8,904 | 9,860 | 11,542 | 11,769 | 12,230 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Non-controlling interests | 393 | 433 | 472 | 524 | 557 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Equity attributable to owners of parent | 17,169 | 17,666 | 18,610 | 20,953 | 23,225 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Retained earnings | 16,237 | 17,028 | 17,971 | 20,193 | 22,465 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |
| Treasury stock | -362 | -655 | -655 | -534 | -547 | S100QXFG, S100TRQW, S100W6KN, S100YKWY |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 26% | S100YKWY |
| Property, plant and equipment | 11% | S100YKWY |
| Intangibles and goodwill | 5% | S100YKWY |
| Investment securities | 23% | S100YKWY |
| Other assets | 35% | S100YKWY |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 31% | S100YKWY |
| Equity | 69% | S100YKWY |
| Other liabilities | 0% | S100YKWY |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 26,768 | 28,339 | 31,798 | 34,671 | 39,315 |
| Equity | 17,863 | 18,479 | 20,256 | 22,902 | 27,085 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 5,590 | 4,550 | 6,299 | 8,341 | 10,340 |

## 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) | 12.8% | S100YKWY |
| Fixed assets ÷ total assets | 10.9% | S100YKWY |
| Goodwill ÷ parent equity | 3.4% | S100YKWY |

Goodwill over 4 years: 1,431 → 795 JPY; total investing cash flow: -4,630 JPY. This does not imply causation.

### 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) | 26.3% |
| Cash ÷ revenue | 30.7% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 90.8% |
| Cash vs. profit gap | 991 JPY mn (of net income 27.3%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 36.9% |
| Shareholder payments — dividends / FCF | 33.9% |
| CapEx intensity (capex ÷ revenue) | 2.0% |
| Investing CF relative to operating CF | 27.0% |

## 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 | 5.3% | 0.95× | 5.0% | 1.56× | 7.9% | S100QXFG |
| 2023 | 4.8% | 0.95× | 4.5% | 1.58× | 7.2% | S100TRQW |
| 2024 | 4.7% | 0.98× | 4.6% | 1.66× | 7.6% | S100W6KN |
| 2025 | 9.1% | 0.95× | 8.6% | 1.68× | 14.5% | S100YKWY |
| 2026 | 10.8% | 0.91× | 9.8% | 1.67× | 16.4% | S100YKWY |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本継手株式会社 | Major shareholder | 19.3% | 2026-03-31 |
| ＵＨＰａｒｔｎｅｒｓ２投資事業有限責任組合 | Major shareholder | 7.5% | 2026-03-31 |
| 光通信ＫＫ投資事業有限責任組合 | Major shareholder | 6.5% | 2026-03-31 |
| オーテック従業員持株会 | Major shareholder | 5.9% | 2026-03-31 |
| オーテック共栄会 | Major shareholder | 5.6% | 2026-03-31 |
| アズビル株式会社 | Major shareholder | 4.8% | 2026-03-31 |
| ＵＨＰａｒｔｎｅｒｓ３投資事業有限責任組合 | Major shareholder | 3.7% | 2026-03-31 |
| 株式会社ＦＭバルブ製作所 | Major shareholder | 2.7% | 2026-03-31 |
| 株式会社みずほ銀行 （常任代理人 株式会社日本カストディ銀行） | Major shareholder | 2.6% | 2026-03-31 |
| 株式会社大和バルブ | Major shareholder | 2.3% | 2026-03-31 |
| 株式会社三菱ＵＦＪ銀行 | Major shareholder | 2.3% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第78期(2025/04/01－2026/03/31) | S100YKWY | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YKWY,, |
| 有価証券報告書－第77期(2024/04/01－2025/03/31) | S100W6KN | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W6KN,, |
| 有価証券報告書－第76期(2023/04/01－2024/03/31) | S100TRQW | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TRQW,, |
| 有価証券報告書－第75期(2022/04/01－2023/03/31) | S100QXFG | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QXFG,, |
| 有価証券報告書－第74期(令和3年4月1日－令和4年3月31日) | S100OJ3H | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OJ3H,, |
| 有価証券報告書－第73期(令和2年4月1日－令和3年3月31日) | S100LIFH | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LIFH,, |

## 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).