Nakabohtec Corrosion Protecting Co.,Ltd.

Business Details

Targeting port facilities (quay walls, piers, revetments, offshore structures, breakwaters, water intake/discharge facilities, submerged tunnels, hull plating, floating structures, etc.), the company provides comprehensive corrosion protection services combining three technologies: cathodic protection, coating-based protection, and paint-based protection. The business is centered on public-sector clients, but also handles facility maintenance work for private companies. Backed by high technical specialization, the segment maintains a high ratio of sole-source (negotiated) orders, forming a business area with high entry barriers.

Recent Overview

The core segment saw a decline in both revenue and profit, down ¥500 million and ¥170 million year on year, respectively.

In FY2026 (ending March 2026), Port segment revenue was ¥8,769 million (versus ¥9,269 million in the prior period) and segment profit was ¥2,178 million (versus ¥2,348 million in the prior period), both below the prior period's levels. Amid a company-wide order intake decline of ¥303 million year on year to ¥14,610 million, the port field also fell short of the strong levels seen in the previous fiscal year. On the other hand, the company continues to expect growth in the port field over the medium term, and forecasts steady performance centered on the port business in its FY2027 (ending March 2027) outlook as well.

Key Products

Growth Drivers

• Continued infrastructure aging countermeasures and renewal investment in ports by public authorities (steady release of large-budget projects)
• Expanding demand for facility maintenance work from private companies
• Stable, recurring demand for renewal and maintenance arising from the expiration of the service life of existing corrosion protection equipment
• New expansion into the offshore wind power field (positioned as a focus area in the '23 Medium-Term Management Plan)
• Maintaining competitive entry barriers through a high ratio of sole-source orders backed by high specialization
• The company explicitly expects growth in the port field as part of its medium-term business environment outlook

Risks

• Profit pressure from rising labor costs due to higher wage levels (expected to continue in FY2026, ending March 2026)
• Risk of price increases in key raw materials (e.g., aluminum alloy anodes)
• Risk of revenue fluctuation due to changes in public-sector budgets and timing shifts in the release of large-scale projects
• Both revenue and profit declined year on year; order backlog trends warrant close attention as a leading indicator for next-period performance
• Impact on raw material prices, energy prices, and material procurement from developments in the Middle East situation
• Impact on construction capacity and cost structure from overtime work regulations in the construction industry