Nisshinbo Holdings Inc.
3105・Prime Market・Electric Appliances
Wireless & Communications
Nisshinbo Group's largest core business, supporting disaster prevention, defense, maritime, and communications infrastructure
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) - Q1 FY2026 (ending March 2026) | ¥89,860 million | ¥81,089 million (Q1 FY2025, ending March 2025) | ↑ |
| Segment profit - Q1 FY2026 (ending March 2026) | ¥19,088 million | ¥12,408 million (Q1 FY2025, ending March 2025) | ↑ |
| Segment profit margin - Q1 FY2026 (ending March 2026) | 21.2% | 15.3% (Q1 FY2025, ending March 2025) | ↑ |
| Sales (external customers) - full year (reference: existing KPI) | ¥251,837 million (full year FY2025, ending December 2025) | — | — |
| Segment profit - full year (reference: existing KPI) | ¥17,668 million (full year FY2025, ending December 2025) | — | — |
Business Details
Centered on Japan Radio Co., Ltd. and Kokusai Electric Corporation, this segment manufactures and sells disaster prevention systems, marine wireless communication equipment, special equipment for the Ministry of Defense, and communication sensors for transportation infrastructure. It is the largest segment, accounting for approximately 60% of the Group's total sales (Q1 FY2026, ending December 2026), and aims to be a "total wireless communication engineering company" supporting the safety and security of social infrastructure. The segment consists of four businesses: Solutions, Special Equipment, Marine Systems, and Connected Systems.
Recent Overview
Q1 FY2026 saw sales up 10.8% and segment profit up 53.8%, marking substantial profit growth
In Q1 FY2026 (ending December 2026), the Wireless & Communications business recorded sales of ¥89,860 million (up 10.8% year on year) and segment profit of ¥19,088 million (up 53.8% year on year), the largest profit increase among all segments. This was driven by a combination of factors: increased orders for the Special Equipment Business and Kokusai Electric Group against the backdrop of the defense capability buildup plan, strong performance in the Solutions Business driven by national resilience initiatives, increased revenue in the Marine Systems Business due to the expanding Chinese newbuild shipping market, and cost reduction effects from structural reforms in the Connected Systems Business.
Key Products
Growth Drivers
- Increased orders for equipment and repair projects for the Ministry of Defense and the Acquisition, Technology & Logistics Agency based on the defense capability buildup plan (Special Equipment Business and Kokusai Electric Group)
- Expanded orders for prefectural disaster prevention systems and water/river system projects driven by DX promotion in river basin flood control under the National Resilience Implementation Medium-Term Plan
- Favorable order trends for merchant ship newbuild equipment and aftermarket (maintenance services) driven by expanding demand in the Chinese newbuild shipping market
- Increased orders in the railway wireless systems field within the Connected Systems Business and cost reduction effects from structural reforms
- High sales visibility supported by an order backlog of ¥277,568 million (end of FY2025, ending December 2025)
- Expansion of new business opportunities through EDMS business development and platform utilization
Risks
- For full-year FY2026 (ending December 2026), increased revenue but decreased profit is expected due to higher growth investment and R&D expenses, posing a risk of declining profit margins
- Risk of changes in government budgets and policies in the defense and disaster prevention fields
- Risk of specification changes and delivery delays in the Connected Systems Business (including the former Mobility Business), and weak demand for overseas business-use wireless equipment
- Risk of business integration disruption and talent outflow associated with organizational restructuring of the Japan Radio Group (including the integration of the Connected Systems Business)
- Risk of goodwill impairment losses and fixed asset impairment losses
- Risk of parts procurement difficulties in the Microwave Products business due to rare earth regulations (related to the Micro Devices business)
Last updated: March 26, 2026